Jim Tanner is in a bind.
About four years ago Tanner decided to lease a Groveland Township home with an option to buy. The expansive, well maintained 3,000 square foot home situated on about three wooded acres was the perfect deal for Tanner.
‘At the time of the lease business and the economy were much better,? said Tanner, 45, a self-employed builder and landscaper with more than 20 years experience.
‘But then the economy changed, layoffs, jobs are gone, the auto industry ‘went south? and few people are buying homes now so my business has slowed. I have to move and this house is now for sale, it’s been on the market for about a year and the price has been reduced, people come and look at the house but no buyers, they say the can find new homes for the same price or less.?
Tanner’s housing situation is not uncommon.
Area home prices and number of sales tumbled in the first six months of 2006 compared to the same period in 2005 according to market reports from Realcomp, suppliers of market information to more than 15,000 brokers statewide.
Brandon Township home sales dropped 54 percent followed by Atlas Township down 50 percent and Groveland Township slipped by 46 percent.
Jim Rogers, data center manager for Southeast Michigan Council of Governments which plans and gathers data in areas that encompasses Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne counties, says the area market information follows both a nationwide and statewide slide in market home sales.
‘It’s amazing how constant the decline is across the markets,? said Rogers. ‘It’s about a 50 percent drop, some may be a little greater than a 50 percent decrease, but it’s pretty close. The decline in manufacturing jobs has really hit our economy hard.?
‘But if you’re trying to buy a home it’s a great time,? added Rogers. ‘The good news is we’re perhaps close to the bottom of the economic slide. And if you’re trying to sell your home the best advice is to price it for the market and be prepared for a wait.?
Ken Schrauban, branch manager for Sure Financial Corporation, 630 Ortonville Road Ortonville says during times of sluggish sales options of leasing a home can be considered.
‘We help a lot of investors qualify renters,? said Schrauban. ‘I could be an option for some sellers rather than foreclosure on homes. There are several factors to considers including making sure you get a good renter, deposits and other issues. In addition more land contracts are an option if you can’t sell your house.?
Dennis Sites, President of Oxford Bank Mortgage services finds plenty of troubled home owners in recent months.
‘Unfortunately foreclosures are way up about triple what they were in 2005, due to the employment picture in the state and the overall economy,? said Sites.
‘If you’re reinvesting in another house you’ll get your money back when your purchasing another house, it’s an incredible buyers market. If you’re selling to move out of the area you’re not going to do as well. Most that are selling are buying another home.?
‘The homeowers that don’t sell one house than start building a new house are at risk right now. If you’re in trouble by all means communicate to the lender. We, (as lenders don’t want the house, we’re not in the real estate, there’s so much you can do to avoid foreclosure.?