Petoskey Real Estate Sales - 1st Quarter 2011

Petoskey Real Estate Market Showing Signs of Stability

Perhaps contrary to some claims you may have read in local real estate ads, the Petoskey real estate market in the first quarter of 2011 showed little change year over year from the first quarter of 2010. This is good news, however, as the federal first-time and repeat home buyer tax credits, which expired on April 30, 2010, significantly inflated the 2010 numbers. Simply holding its own, absent Uncle Sam's fiscal largesse, can be seen as a victory for the Petoskey real estate market in the first quarter of 2011.

The number of single family residences (including Petoskey homes and condominiums) sold in the Petoskey School District in the quarter increased by one unit, from 46 in 2010 to 47 in 2011. The total dollar volume from sales of Petoskey homes and condominiums in the quarter decreased slightly, however, from $10.1 million in 2010 to $9.8 million in 2011.

The median Petoskey home price declined from $165,600 in the First Quarter of 2010 to $145,000 in the First Quarter of 2011. The average home price also declined slightly, from $219,102 in the First Quarter of 2010 to $207,824 in the First Quarter of 2011.

Petoskey Real Estate Sales Collapse

The Petoskey real estate market appears to have collapsed in the first half of 2009, following a relatively strong first half the previous year. The latest sales numbers are abysmal. One can only wonder if these latest numbers signal a market capitulation or bottom, or whether things can actually get worse from here.

The number of Petoskey homes and condominiums sold during the first half of 2009 was down only 22%, from 120 units in 2008 to 94 units in 2009. I only have unit sales data from 2002 forward, and 94 units is the smallest number in the first half of any year in the last eight years. That is the good news.

However, the dollar volume of 1st half residential sales in the Petoskey School District tanked, from $47,001,605 in 2008 to $16,510,876 in 2009, a decrease of almost 65%! This dollar volume is the lowest number recorded since 2001, which is oldest dollar volume data I have available for a first half, when $24.6 million in residential sales was reported.

The average sale price for a Petoskey home during the first half of 2009 plummeted to $175,648 from $391,680 during the first half of 2008. Perhaps more importantly, the median sales price decreased significantly, from $180,500 in 2008 to $138,000 in 2009, a decline of 23.5% year over year, and a full 30% decline from what appears to have been the market peak median sales price of $197,090 for the full year 2005.

Of the 94 Petoskey homes and condominiums sold during the first half of 2009, it appears as though at least 41, or 43.6% of the sales, were bank owned foreclosures. I know that at least some of the remaining 53 sales were short sales, where the bank accepted less than what was owed on the mortgage to avoid foreclosure proceedings. I think that I am being conservative in my estimation that a majority of the sales during the first half of 2009, or over 50% of the sales, were either bank owned foreclosures or short sales. This is truly an astonishing number. Foreclosure sales are having a significant negative impact upon Petoskey property values and it is unclear at this time if the end to the foreclosure boom is in sight.

Note: Based upon sales information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2009 through June 30, 2009.

Petoskey - Great Town of America

Petoskey has once again been honored as one of the "100 Best Getaways for a Vacation or a Lifetime" in "The Great Towns of America Revisited" authored by David and Joan Vokac.


The Vokacs describe Petoskey as "a classic among genteel Midwestern towns," and also observe that "The Great Lakes timeless appeal, the natural beauty and winter recreation prospects of surrounding hills, and Petoskey's original heritage remain intact."

Petoskey was included in the original 1998 edition of Great Towns, along with Traverse City, Holland and Charlevoix. Holland and Charlevoix have been replaced in the new edition.

Congratulations Petoskey! Please feel free to contact us if you would like to learn more about Petoskey real estate, and why Petoskey is such a great place to live and vacation. We would love to hear from you.

National Rails-To-Trails Conservancy Recognizes Little Traverse Wheelway

The Little Traverse Wheelway was recognized by the national Rails-To-Trails Conservancy as its Trail of the Month for January, 2009. Stretching approximately 25 miles along the shoreline of Little Traverse Bay, from Charlevoix through Petoskey and on to Harbor Springs, this gem provides abundant year-round recreational opportunities for residents and visitors alike. A big thank you and congratulations to the Top of Michigan Trails Council, and its many volunteers and supporters, which has been instrumental in the development of the Little Traverse Wheelway!

November Northern Michigan Real Estate Sales Horrible

Horrible Northern Michigan real estate sales numbers for the month of November, 2008 seem to mirror the macroeconomic climate. Today the Labor Department reported that U.S. nonfarm payrolls fell by over half a million last month, the worst such tally in 34 years. Who can buy a home if they don't have a job?

Sales of single family homes and condominiums in the Petoskey, Harbor Springs, Charlevoix and Boyne City real estate markets were down year over year, with 43 sales in November of 2008 compared to 50 sales in November of 2007. Total sales by dollar volume decreased by a whopping 50%, from just under $20 million ($19,990,790) in November of 2007 to just over $10 million ($10,048,450) in November of 2008. The dollar volume of Petoskey sales was only a third of what it was last year, from just under $10,350,000 in November, 2007 to $3.6 million this year.

The median home price declined from $227,100 in November of 2007 to $158,500 in November of 2008, a decline of over 30% year over year. The average days on market for homes which sold during the month of November of 2008 decreased to 210 days, from 269 days in November of 2007.

Sales of bank owned properties almost doubled, from seven to thirteen. Bank owned properties accounted for over 30% of sales during the month of November, 2008, continuing to put pressure on prices in our marketplace.

This report is based upon sales information obtained from the Northern Michigan Multiple Listing Service for the months of November, 2007 and November, 2008.

Northern Michigan Real Estate Market Conditions - October 2008

Sales of single family homes and condominiums in the Petoskey, Harbor Springs, Charlevoix and Boyne City real estate markets were down year over year, with 58 sales in October of 2008 compared to 64 sales in October of 2007. Total sales by dollar volume decreased from $23,832,500 in October of 2007 to $17,551,855 in October of 2008, a decline of over 26%. The dollar volume of Petoskey home sales alone declined almost three million dollars, or over 36%, from just under $8 million last year to just over $5 million this year.

The median home price declined from $224,500 in October of 2007 to $212,500 in October of 2008, a decline of just over 5% year over year. The average days on market for homes which sold during the month of October of 2008 increased to 222 days, from 185 days in October of 2007.

Sales of bank owned properties more than tripled, from five to eighteen. Bank owned properties accounted for almost one in three sales during the month of October, 2008 continuing to put pressure on prices.

This report is based upon sales information obtained from the Northern Michigan Multiple Listing Service for the months of October 2007 and October 2008.

Petoskey Real Estate Sales 1st Half 2008

Petoskey residential real estate sales volume actually increased year over year in the first half of 2008, from 106 unit sales of homes and condos in the first half of 2007 to 120 unit sales in the first half of 2008.

In addition to a 13% increase in unit volume, the dollar volume of 1st half residential sales in the Petoskey School District increased significantly from $34,064,331 in 2007 to $47,001,605 in 2008, an increase of almost 38%.

The average sale price for a Petoskey home during the first half of 2008 was $391,680, compared to $318,358 during the first half of 2007, while the median sales price decreased slightly, from $183,000 in 2007 to $180,500 in 2008. Days on the market for those properties which sold during the first half of the year increased significantly, from 179 days on market in 2007 to 277 days on market in 2008.

Petoskey Pointe Extension Granted

The Petoskey City Council recently voted 4-1 to extend a deadline for "substantial completion" of the Petoskey Pointe Project from early November of 2008 to December 31, 2009. The deadline is part of an agreement between the City and Lake Street Petoskey Associates, the Farmington Hills developer of the Project. According to published reports in the Petoskey News Review, work on the hotel/retail/condominium project stalled last year after National City Bank withdrew its financing. The Developer requested an extension of the deadline in December of 2007, indicating that new financing arrangements involving overseas funds were close to being finalized. To provide protection for the City, the resolution approved by the City Council calls for financing to be demonstrated and construction on the project to resume by March 15th.

Petoskey, Michigan - Terrific Retirement Town

Petoskey, Michigan is being featured along with seven other towns in the January/February 2008 issue of Where to Retire magazine, in an article entitled "8 Terrific Low-Tax Towns."

The article notes that ". . . in Petoskey, the skiing, sailing and scenery attract many retirees who also enjoy upscale dining options, a charming downtown with boutique shopping and a reasonable cost of living." The article explains that the yearly local tax burden on a hypothetical retired couple with an annual income of $60,000 and a home value of $225,000 would be $4,084.00 This amount would be even lower for a home located outside the city limits. Resort and Bear Creek Townships, for instance, both have lower property tax rates than those in the city proper.

Other terrific low-tax towns featured include Easton, Maryland, Oxford, Mississippi, Gainesville, Georgia, Fairhope, Alabama, Staunton, Virginia, Ashland, Oregon and Kalispell, Montana. Once again Petoskey finds itself in great company! If you are considering places to retire, make sure you come see why everyone is raving about Petoskey. The natural beauty of the area is unsurpassed, we have abundant recreational and cultural opportunities, we are a very safe community with an excellent quality of life, we have a first class regional medical center, and it is an affordable place to live. What more could you ask for?

Petoskey Real Estate Market Year End Report

Not surprisingly, Petoskey residential real estate sales volume decreased in 2007 from 2006. Unit sales of homes and condominiums in the Petoskey School District decreased to 255 units from 282 units, a decline of over 9%. Sales by dollar volume also fell, from $98,896,350 in 2006 to $82,476,049 in 2007, a decline of more than 16%.

Despite the decline in sales activity for Petoskey homes and condominiums, the median Petoskey home price actually increased by just under 1%, from $188,500 in 2006 to $190,000 in 2007. Average days on market was almost unchanged, from 200 days in 2006 to 199 days in 2007 for those homes which sold. The average price paid for a Petoskey home dropped from $350,696 in 2006 to $323,435 in 2007.

Note: Based on information obtained from the Northern Michigan Multiple Listing Service for the period from January 1, 2006 - December 31, 2007.

Petoskey Commercial Real Estate Projects Abound

Area planners have been working overtime considering a number of approvals which are being sought for new commercial real estate projects in the Petoskey area.

Walgreens would apparently like to build a new store on Petoskey's north side, at the site currently occupied by Kentucky Fried Chicken and the old Schelde's restaurant. Oleson's is reportedly seeking approval to construct a new store on U.S. 31 North across from Dave Kring Chevrolet - Cadillac. JoAnn Fabrics is looking to relocate from their current location in the Glen's North Plaza to Bear Creek Plaza (near the Petoskey Cinema and Home Depot, and an MC Sporting Goods is supposedly planning to locate there as well). Perhaps the biggest of all these planned developments is a proposed Meijer superstore on U.S. 131 just South of the former Victories Casino site. Now that is a lot of activity for one month in Petoskey, wouldn't you say?

If you are interested in purchasing a piece of commercial property in Northern Michigan, feel free to contact us. We would be happy to discuss the value added services we provide to our Northern Michigan commercial real estate clients. Stefan Scholl, Associate Broker, is also a Michigan licensed attorney practicing in the areas of residential and commercial real estate. We have represented clients statewide in the purchase of commercial real estate, and offer our commercial real estate clients generous commission rebates to be applied to their legal fees. Buyer's Broker of Northern Michigan, LLC can be reached toll free at (877) 228-9664 or (877) 2 BUY NMI. We look forward to the opportunity to be of service.

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.

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Northern Michigan Regional Hospital

Northern Michigan Hospital has a new name, Northern Michigan Regional Hospital. And a new logo! Pretty snazzy.

We are so blessed to have such a wonderful regional referral hospital in our community, and such a kind and caring professional staff.

If you are considering an employment opportunity with Northern Michigan Regional Hospital, we would be happy to chat with you regarding local housing opportunities, the Northern Michigan real estate market, area neighborhoods and schools, etc., without obligation.

As mentioned in Medical Economics magazine, "a buyer's agent can help you negotiate the best deal possible by providing a comparative market analysis, recommending appropriate professional inspections, giving you information about the area that the seller's agent isn't required to disclose, and reviewing the settlement statement and other relevant documents. Generally, you don't pay for this guidance. Instead the buyer's agent splits the commission paid by the seller to the listing agent."

Our company specializes in relocation and buyer agency. We don't list properties for sale or represent sellers. We are completely, 100% loyal to our buyer clients and their interests. As local experts, we can save you money and offer you peace of mind when relocating to the area. If you are a transferee unfamiliar with the Petoskey area, we will give you all the facts about a particular home or location, both good and bad. A listing agent may not be as willing to offer information that might prove detrimental to a sale, because he or she works for the seller. Their duty is to sell the property they have listed. On the other hand, an exclusive buyer agent only represents buyers and does not have listings. We can provide our clients the objective information they need to make the right decision regarding a home or property.

According to Diversion Magazine for Physicians, "A 1992 study found that 200 relocating workers who used buyer brokers paid an average of 91% of the offering price, whereas those using traditional brokers paid 96%.

If you are considering accepting a position with Northern Michigan Regional Hospital, please give us a call toll free at 877-228-9664. We would be pleased to share our knowledge of the area and the Northern Michigan real estate market with you. We have successfully represented a number of Northern Michigan Regional Hospital transferees, and look forward to the opportunity to be of service.

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Northern Michigan Regional Hospital is our pot of gold at the end of the rainbow!

Petoskey Real Estate Market Slides in Third Quarter

The Petoskey real estate market took it on the chin in the Third Quarter of 2007, with both sales and sale prices of Petoskey homes and condominiums broadly lower compared to 2006.

The number of single family residence sold in the Petoskey School District in the quarter declined 13%, from 85 in 2006 to 74 in 2007. The total dollar volume from sales of Petoskey condominiums and homes in the quarter sank over 24%, from over $30 million in 2006 to $22.8 million in 2007. The median home price declined precipitously, from $237,000 in the Third Quarter of 2006 to $187,225 in the Third Quarter of 2007, a decline of over 21%.

The declines in the third quarter reflect the weakness in both the state and local economies. In addition to weak demand, increased inventory and the rising number of foreclosures are taking their toll on prices. The figures point to the fact that this is a strong buyer's market. If you are in the market for a Petoskey home or Petoskey real estate, now may be a good time to consider either purchasing or trading up, if you are one of the lucky few in a position to do so.

Storm Sinks Boat at Petoskey Marina

It was a stormy 9/11 in Petoskey, with strong winds and intermittent rain squalls pushing down from the North. Casualties from the storm at the Petoskey City Marina included this seventeen foot Aquasport powerboat, which partially sunk in its slip. When checking on my boat this morning, I found Petoskey Harbormaster Chris Flynn overlooking the scene, with the partially submerged boat suspended precariously from its remaining strained docklines.

Chris reported that the marina staff was on hand until approximately 1:00 a.m checking on boats during the storm. The Aquasport must have sunk sometime in the early morning hours. It was unclear whether the boat was swamped by a wave or perhaps filled with rainwater and overturned. The NOAA weather buoy in Northern Lake Michigan, Station 450002 , reported sustained winds of 31.1 knots from 5:50 p.m. through 7:50 p.m., with a maximum gust of 40.8 knots. That was all it took to shred the headsail shown at the right. What a blustery day and night it was here in Northern Michigan. Fortunately, this is probably as close to a hurricane as we will ever get.

Petoskey Real Estate Market Report - 1st Half 2007

Note: Based upon information obtained from the Northern Michigan Multiple Listing Service for the Periods of Time from January - June, 2001-2007.
Copyright 2007 - Buyer's Broker of Northern Michigan, LLC

Petoskey Real Estate Market Report - 1st Half 2007

Note: Based upon information obtained from the Northern Michigan Multiple Listing Service for the Periods of Time from January - June, 2001-2007.
Copyright 2007 - Buyer's Broker of Northern Michigan, LLC

Petoskey Featured in "101 Best Outdoor Towns"

Petoskey is an ideal place for lovers of the outdoors, as recently confirmed by former Men's Journal editors Sarah Tuff and Greg Melville, who feature Petoskey in their recently released book, "101 Best Outdoor Towns."

In a nod to our "million dollar" sunsets, the authors state that "The Caribbean has nothing over the view from town as the sun extinguishes into Lake Michigan behind the creamsicle horizon." Looking for a romantic getaway? Pair the gorgeous sunsets along with "the back-in-time feel of the artsy downtown Gaslight District, the long beach walks and the views of Little Traverse Bay from the top of sandy Old Baldy, and you've got one of the most romantic spots in the Midwest."

Speaking of outdoor options, the authors point to the Little Traverse Wheelway bicycle path, the North Country Scenic Trail and the Petoskey State Park for hiking, fishing, swimming and paddling on area lakes and rivers, and downhill and cross country skiing at area resorts and trails. Our area has so much to offer outdoor enthusiasts. Petoskey's recognition as one of the "101 Best Outdoor Towns" is well deserved.

Odawa Casino Resort to Open Soon

According to the Petoskey News Review, the Odawa Casino Resort in Petoskey, which is owned by the Little Traverse Bay Bands of Odawa Indians of Michigan, is set to open on Wednesday, June 20, with a formal grand opening scheduled for July 25th.

The Odawa Casino Resort in Petoskey will feature casino gaming to include 1,500 slot machines, 30 table games and six poker tables, a nightclub/sports bar, and an events center with seating for 1000. Dining options will include include a steakhouse, buffet and coffee shop.

Barry Milligan, the manager of Victories Casino, which will be replaced by the new Odawa Casino Resort, told the News Review, "It’s much more in line with a first class resort hotel than a casino. It’s along the lines of the Bellagio."

The casino will reportedly employ nearly 1,000 people, with 500 new jobs created. While I tried to get some pre-opening photos for our loyal readers, I was rebuffed by the casino's marketing department. Oh well, at least I tried.

Petoskey Schools Athletic Facilities Proposal Defeated

Voters in the Petoskey School District resoundingly defeated a $15 million bond proposal to construct a new school athletic complex by a margin of 2,457 - 1473.

I was actually quite surprised late last year when the school district released the results of a survey showing that the public would support funding such a proposal, given the current state of our state and local economies. Apparently my skepticism of the survey data was warranted.

The Traverse City Record Eagle ran a story on the defeat, pointing to the weak economy as a major contributing factor to the outcome. I would have to agree with their assessments. The fact that we have lost a number of local employers recently has people concerned. In trying times like these, people are hesitant to commit to spending money on anything which is not deemed to be absolutely essential. The voters apparently saw this proposal as a luxury which cannot be afforded at this time.