Petoskey Homes - October Swoon
There is blood in the streets! There is carnage in our local real estate market! If you are a buyer, this could be a great thing! Sorry all you sellers, this is not good news for you. If you don't need to sell right now, just disregard this blog and check back to see how the market is doing in a year or two.
In October of 2007, twenty-four single family residences (homes and condominiums) sold, compared to thirty-three sales in October of 2006, a decline of over 27%. Total dollar volume of sales in October of 2007 was $7,715,200, compared to $10,749,375 in October of 2006, a decline of over 28% year to year. The median home price fell from $199,900 to $188,450, a decline of almost 6%.
As of November 7, 2007, there are 569 Petoskey homes for sale (including condominiums) in the Petoskey School District. With twenty-four sales last month, the monthly absorption rate is 4.2% of available inventory. We currently have just under a two year supply of homes on the market!
In my opinion, this is great news for real estate buyers and investors. Although it may be impossible to predict a bottom, these difficult market conditions are producing a number of attractive buying opportunities right now. Are you a bargain shopper? This may be a good time to start looking, if you are possibly interested in purchasing a Northern Michigan property.
I am putting my money where my mouth is. I recently cashed in on some stock market gains and just purchased a commercial condominium unit. I am also preparing to write an offer on a vacant lot for my own investment portfolio. I am trying to follow the sagest investment advice ever given--buy low and sell high.
If you are interested in learning more about investing in the Northern Michigan real estate market, please feel free to give us a call toll free at (877) 228-9664. We look forward to the opportunity to be of service.
Search Local Property Listings Online
In October of 2007, twenty-four single family residences (homes and condominiums) sold, compared to thirty-three sales in October of 2006, a decline of over 27%. Total dollar volume of sales in October of 2007 was $7,715,200, compared to $10,749,375 in October of 2006, a decline of over 28% year to year. The median home price fell from $199,900 to $188,450, a decline of almost 6%.
As of November 7, 2007, there are 569 Petoskey homes for sale (including condominiums) in the Petoskey School District. With twenty-four sales last month, the monthly absorption rate is 4.2% of available inventory. We currently have just under a two year supply of homes on the market!
In my opinion, this is great news for real estate buyers and investors. Although it may be impossible to predict a bottom, these difficult market conditions are producing a number of attractive buying opportunities right now. Are you a bargain shopper? This may be a good time to start looking, if you are possibly interested in purchasing a Northern Michigan property.
I am putting my money where my mouth is. I recently cashed in on some stock market gains and just purchased a commercial condominium unit. I am also preparing to write an offer on a vacant lot for my own investment portfolio. I am trying to follow the sagest investment advice ever given--buy low and sell high.
If you are interested in learning more about investing in the Northern Michigan real estate market, please feel free to give us a call toll free at (877) 228-9664. We look forward to the opportunity to be of service.
Search Local Property Listings Online
Labels: market statistics, Petoskey
posted by Stefan J. Scholl, J.D. - Exclusive Buyer Agent at 11/07/2007 12:01:00 PM
2 Comments:
IMO things are going to get much worse. I wouldn't run out and buy any 'bargains', at least not yet. I believe that we have just seen the tip of the iceberg.
I am a local business owner (Petoskey) and I have seen over 45% a decrease in my sales in sixteen months. Even now my sales are going down month after month. Everyone knows that Michigan is in trouble, but from talking to several other business owners who have similar stories I must say that we are far from the bottom. If this trend continues, I hope I am wrong to believe it will, one of my two businesses will be out of business one year from now. The other will hold out much longer, but how long?
Northern Michigan, particulary northwest Michigan, got hit reasonably hard from the housing boom. While we are not even close to being on the scale of the west coast, the cost increases over ten years for buying a home went up many times. The amount of home buyers that are struggling to make their monthly payments is increasing. These people will not have money to spend on luxury items.
Globalization has taken away many of our jobs, even locally. The new jobs to replace them are often at or near poverty wages. The state of Michigan is constantly raising business taxes and one can only hope that a miracle is about to occur.
As a business owner I am going to give advice to the consumers out there that I normally wouldn't give. Save your money, I believe we are in for a rough ride ahead.
“Buy low and sell high”. You said it Stefan! Real estate investors and buyers have got it real good. I wouldn’t want to be in the shoes of a seller though. It would be tough letting go of a house that can fetch much more than the price tag that is attached.
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