A mix of record low intrest rates and uncertianties in the job market has produced several dramatic fluxuations in the Northern Oakland County real estate market.
Local existing home sales have declined during the past 30 months while prices have remained relatively constant according to a report released from the North Oakland County Board of Realtors. Home prices in Groveland Township continue to lead the way while the Goodrich/Atlas area remain the lowest in the area. Home sales in Brandon Township have decreased by about 30 percent in 2003.
‘The prices have stayed the same pretty much over the last 30 months,? said Mike Allingham, a local Realtor and owner of Allingham Real Estate 875 M-15, in Ortonville. ‘Homes are now taking a little longer to sell right now.?
Allingham, who has sold homes in the Northern Oakland County area for the past 37 years says that while interest rates are the lowest in years, job security is a real issue with prospective buyers.
‘If buyers don’t feel good about their jobs, then buying is out of the question,? Allingham added.
‘People may not buy as much of a house either, and opt for a smaller home, when their job is on the line.?
Another factor in local home sales are the prices buyers are willing to pay.
‘Buyers are out there, but buyers are not going to overpay for the homes,? said Mike Wang, who represents Atlas Real Estate, 8491 State Road, Goodrich.
A lower interest rate often prompts sellers to inflate the price of homes, which can slow sales, says Wang. ‘I’ve seen homes 10 to 15 percent higher in this kind of market. If homes are priced according to the rest of the market they will sell just fine.?
The real estate market in the Goodrich-Atlas areas right now is dynamic, added Wang, ‘The Goodrich Area is only about an hour from Detroit or Lansing or St. Clair county, we’re not far from business while in a county setting.?
Yet, while home sales in a rural setting, found in the Northern Oakland County area may draw home buyers the attraction may be short lived.
North Oakland County Board of Realtors, Association Executive Pat Jacbos says that the North Oakland County Area has the potential for a major housing boom.
‘People want to live in Northern Oakland County,? said Jacbos who represents about 1,200 local agents.
‘Twenty-three years ago, few people knew where Ortonville or Brandon Township was’today it’s closer then ever to cities to the south.?
Jacbos, added that while it may take another 20 years to development, ‘the growth is going to happen, the area will go from rural to urban.?
The report shows Groveland Township home prices higher than other communities, in part due to the amenities available, says Angie Batten, owner of Re/Max, 630 S. Ortonville Road.
‘Groveland (Township) is growing faster than other communities because of the amount of land, natural gas, state land, factors that draw more urban people.?
Batten says, when people look to move to this area giving up city sewer and water is not as bad as giving up natural gas which is available in some parts of Groveland Township, for propane.
‘For people moving to the Northern Oakland County area it’s very rural especially coming from a small lot to two and one-half acre parcels,? said Batten. ‘The old time residents say things are getting too built up here and now they’re moving.?