Area real estate manager Jeff Dawley witnesses the good and bad of the local housing market.
Dawley, manager of Atlas Real Estate, 8491 State Road, Goodrich, says foreclosures have sparked about a 20 percent decline in home values in the area.
That’s the bad.
The good part is, sales of homes are up, explained Dawley.
‘No community has been spared from foreclosures,? said Dawley. ‘Four factors have contributed to a 20 percent increase in sales over the past year’great interest rates, first time home buyer incentives, affordable prices and plenty of inventory. It’s the perfect storm for home buyers.?
Dawley said some investors are out there snagging up great values in local property.
‘Right now we are closer to the bottom than the top of foreclosures. We have more distressed property to go through the system’the supply of homes and the demand for those homes? balance is just not right. It’s more than likely to be a year of two before values come back in line. Keep in mind, too, that banks don’t want these properties back’so they will do all they can to keep these homes in the hands of the owners.?
An indicator that more foreclosures may be right around the corner is the end of the State of Michigan’s 90-day moratorium giving those in danger of losing their homes more time to negotiate with lenders. The legislation passed in the spring will start running out this fall.
Pat Jacobs, executive vice president of the North Oakland County Board of Realtors said it’s only common sense.
‘We have a mess here. When the moratorium ends this fall we could see a major spike in foreclosures. There’s no jobs for people to pay for these homes.?