According to a report issued by Realcomp, a realtor-owned multiple listing service that supplies first-rate data services, support and instruction to the real estate industry, home prices jumped in both Atlas and Groveland townships during the first quarter of 2012 compared to 2011. Home prices in Brandon Township dipped over the same first quarter.
“The average sale prices are trending up,” said Jeff Dawley, owner of Atlas Real Estate, 8491 S. State Road, Goodrich. “That’s due to the lack of inventory. The (inventory) levels are down significantly—in fact it’s down about 18 percent since last year. But that’s a good thing—that helps stabilize the prices. It’s simply a function of supply and demand, we’re finding this across the board.”
In Groveland Township the average sales price jumped during the first quarter of 2011 from $156,145 to $162,087 in 2012. In Atlas Township (includes Goodrich) the average sales price of a home increased to $155,791 in 2012 from $125,473 in 2011. In Brandon Township (includes Ortonville) the average sales price declined from $137,932 in 2011 to $125,267 in 2012.
“This a good sign for the future of real estate,” he said. “The bottom line is we had too many homes for sale, over supplied. Too many homes on the market for the number of buyers available.”
Dawley said low mortgage rates lured buyers into the market a few years ago. Today the lending standards are very tight—it’s much more difficult to obtain a mortgage than 5-7 years ago.
“Loose mortgage standards got us in the mess, but on the other hand, if it’s too tight we not going to get out either. For our market to get healthy we need to reduce the number of distressed sales to balance the market out.”
Dawley added that as the automobile industry improves, so will our local economy.
In Genesee and Oakland counties both home sales and median sale price increased through April 2012 compared to the same period in 2011. According to the Realcomp report, home prices jumped in Genesee County from an average of $40,048 in April 2011 to $52,000 in 2012. In Oakland County home prices increased from $105,000 in 2011 to $114,500 in 2012 during the month of April.
The report also showed an increase in home sales. Through April the number of homes sold increased 13.7 percent in Genesee County to 440 in 2012, up from 387 in 2011. Home sales increased slightly (1.5 percent) in Oakland County from 1,426 in 2011 to 1,448 in 2012.
“Right now people are buying cars,” he said. “The market is improving and much better than a year ago. The home inventory is down, but it’s somewhat healthy. I’d like to have more property to sell, but not a lot more. I’m more about a balance. It was a buyer’s market and now that’s changing.”
“However, it’s going to be five to 10 years to get back to the place we were. The trend is going to improve. As a business person here in the Goodrich area I’d rather see slow progressive growth in the industry rather than a bubble burst. However, if there’s a war in the Middle East and gas jump that could change.”