“All indicators point to this spring being the busiest since 2006.”

A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed: “All indicators point to this spring being the busiest since 2006.”

Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook Report, Freddie Mac explained:

“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”

The key indicators that have given Freddie Mac such a positive outlook are:

• Low interest rates
• A resilient labor market
• An increase in household formations
• A projected increase in newly constructed homes

Bottom Line

2016 looks to be shaping up as a great year for residential real estate. Whether you are thinking of buying or selling, now may be the time to sit down with a real estate professional to discuss the new opportunities that are arising.

It is important to know the value of your home

Many people when asked if they would like to know the current value of their home shrug.  They don’t see any reason why they should at least get an estimate of the market value of their home on an annual basis.

Truth is, there are many reason homeowners should get a real estate professional to provide an estimate on the market value of their home.  This is true, even if you aren't planning on moving in the near future. One example comes to mind of a man that left his house to one son and his investments to another.  When he made the will, things were about even.  But, when he died, the estate was split like his will required, but the house was worth so much more than the investments that it was a very uneven split.  If the man had monitored the value of his house throughout the years, he would have been able to make adjustments to his will to keep it up to date.

Think about it, it is considered smart for people to meet with their financial adviser annually to review their investments.  It is also smart to meet with your real estate agent to review the value of what is for most of us, the biggest investment we make.

Here are some reasons to review the value of your home annually but certainly not an all-inclusive list:  

• Make judgements about your own home by comparing it to the value of your neighbor’s home.  

• Make judgements about your community by comparing the value of your home to county, state and national home values.

• Knowing the equity in the home helps you plan for repairs that are needed.

• Your net worth can be more precisely known.

• You may want to make adjusts to your insurance policy to keep up with your home value.

• Some communities have rebuilding requirements that may affect your ability to rebuild if you are under insured.  

• Don’t pay property taxes beyond the value of your home.

• Better plan for retirement by keeping track of the equity in the home.

• If you are considering a reverse mortgage, knowing the value will help you make a better decision.

• Let’s hope you never need emergency cash, but knowing the value will help you plan for emergencies better and save money on insurance.

• Know if an improvement will be right for the house by not over investing in your home.  

• Be aware of the value of your estate.

• If you pay PMI (private mortgage insurance) when an equity level is reached, you may not have to continue to pay.

• If the equity in your home reaches a certain level you may not need to make monthly escrow payments for property taxes, allowing you to invest the money instead of letting someone else hold it.

• Pay off bills by taking some of the equity out of the home.

• If you plan on refinancing the mortgage you will need to know when you reach the equity level you may need.

A real estate agent that is looking out for your best interest will not charge you for a CMA (Comparable Market Analysis) for your home.  To get the best idea of the value of the home, the agent will need to visit to home, research recent history on comparable homes that have sold in the market and make adjustments in the value based on your home.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

Median prices for homes in Southeast Michigan highest in 10 years

Across southeast Michigan, the median sales price for housing hit $146,250 in October, 4.5 percent higher than October a year ago and the highest median October price level in 10 years – up from a low of $67,000 in 2010. Median means half the homes sold for more and half for less.

Median sales figures compiled by Realcomp and made available Thursday vary across the region down to the street level, but it reports housing and condominium activity primarily by county with some smaller areas broken out.

Realcomp defines southeast Michigan as Oakland, Wayne, Macomb, Livingston, Genesee, Lapeer, and St. Clair counties.

MEDIAN PRICES

Across the seven counties, Livingston County had the highest median sales price in October of $216,800, up 1.4 percent from a year ago. The median sales price rose 4.6 percent to $195,000 in Oakland County, 4.7 percent to $157,000 in Lapeer County, 9.3 percent to $139,900 in Macomb County, 3.5 percent to $132,000 in St. Clair County, and 12.1 percent to $108,750 in Genesee County.

In Wayne County, the median sales price rose 6.5 percent to $103,000. But the median sales price in Wayne County excluding Detroit rose 4.6 percent to $115,000.

SALES

In order, there were 1,811 sales in Oakland County in October, 1,691 sales in Wayne County, 1,143 sales in Macomb County, 476 sales in Genesee County, 312 sales in Livingston County, 225 sales in St. Clair County, and 104 sales in Lapeer County.

In other observations from Realcomp:

• The average days on the market fell by one to 46 days.

• The number of houses for sale was virtually unchanged at 25,071 compared to 25,068 a year ago.

• Median October sales prices have risen each year since 2011.

• Across southeast Michigan, the 6,408 sales in October is slightly below the October peak of 6,421 in 2009.

http://www.macombdaily.com/special-news-reports/20151112/median-real-estate-sales-prices-hit-10-year-high-across-southeast-michigan

By Charles Crumm, charlie.crumm@oakpress.com, @crummc on Twitter, Local News Editor Jeff Payne contributed to this report.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

Cost of home improvement projects and their return at sale

Cost of home improvement projects and their return at sale

A question that comes up often when a client is considering placing their home on the market is should something be replaced or renovated in the home to improve the selling price? The answer in the short run is yes; replace a broken or worn out item, certainly make the cosmetic improvements, but don’t renovate the kitchen or bath just to sell the home.

If the water heater is making noises, if the garage door is bent and off track or, if the faucet in the bathroom is leaking then repair or replace it.  If something is broken when buyers walk through the home during a showing, it will pull down the price of the home when an offer is made and provide a negotiating edge to the buyer.  Keep in mind, even if the buyer didn't notice it when they made the offer, the home inspector will pick it up - or at least should.  This will give the buyer a chance to submit a lower offer, or back out of the agreement altogether.  

But, when it comes to renovating, don’t.  As you can see from the graph linked here, (Cost of improved compared to return on sale - table) the only thing that returns 100% of the investment is replacing the front door.  

If you do make large improvements, make those renovations a few years before you are going to sell.  Living in the home for about five years after you complete the project, you can consider the difference between the cost of the renovation and the resulting effect on selling price as your enjoyment return.  Living with the improvement makes for a better living space for the time that you stay.  Then, when you sell the home, the additional value makes sense, or in this case, dollars. 

In the near future, "Ten things you can do to make your home appealing on the market".

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

Average sale price in October 2015 for homes in Berkley, Michigan

Average sale price in October 2015 for homes in Berkley, Michigan

Month	Sale Price, Median 2013	Sale Price, Median 2014	Sale Price, Median 2015
Jan	$103,950	$129,250	$150,200
Feb	$120,000	$135,050	$139,900
Mar	$115,000	$146,500	$152,500
Apr	$130,500	$149,000	$166,000
May	$122,250	$155,750	$166,750
Jun	$147,000	$155,000	$180,000
Jul	$136,450	$150,500	$160,000
Aug	$139,500	$132,750	$147,500
Sep	$142,500	$149,900	$161,750
Oct	$129,000	$125,500	$145,000
Nov	$155,500	$151,000
Dec	$138,930	$163,500

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan. He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.