Submitted by Anonymous on Mon, 04/23/2007 - 05:00.
Cadillac, Michigan housing slump takes it toll
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During the past four years market prices for existing homes in the area declined 5 to 10 percent, according to Exit Realty agent Sheila Richardson.
The market has many home sellers trapped in a Catch-22. Houses that are moving are those priced around $100,000 and these are typically the home owners who can least afford a loss.
“It’s not in someone’s best interest to sell unless they have to,” said Shirley Schafer, broker/owner of Pro Realty of Cadillac. “But it’s a great time to buy.”
Especially if you are looking at higher-end homes, according to the realtor.
“We probably have a three-year supply on the market of homes priced over $100,000,” Schafer said. “A lot of it is lakefront or acreage.”
Waterfront and acreage properties are considered luxuries. “It’s not something the average buyer can aspire to,” she said.
Area buyers tend to be first-time buyers in their 20s or early 30s, but some migration from southern Michigan is also taking place. “People are coming in from downstate,” Richardson said. “They left their jobs or got buyouts.”
Despite the recent collapse of the subprime lending system, mortgages are still available and attractive for buyers with good credit scores, she said. The no-down payment mortgage aids buyers, as well as new incentive programs that eliminate the closing cost. “The seller pays all closing costs,” Richardson explained. “You raise the selling price. The seller then gets out with all proceeds at closing and the money is there to cover closing costs.”
While she takes an optimistic attitude, the uncertainty of the future causes her concern with the recovery of home values likely to come as a response to growth in the local job market and industry’s ability to attract higher paying jobs. “In another five years, we could be worse off,” she said. “We all might be selling our homes for 50 cents on the dollar.”
Residential real estate sales in the Wexford/Missaukee market
• February 2007 sales: 65
• Year to date sales (as of February): 127
• Percent change over same period last year: + 5.8 percent
• 2007 average sale price: $101,500
• Percent change over same period in 2006: + 1.4 percent
Source: Michigan Association of Realtors
Source: http://www.cadillacnews.com/articles/2007/04/23/news/news01.txt
“It’s not in someone’s best interest to sell unless they have to,” said Shirley Schafer, broker/owner of Pro Realty of Cadillac. “But it’s a great time to buy.”
Especially if you are looking at higher-end homes, according to the realtor.
“We probably have a three-year supply on the market of homes priced over $100,000,” Schafer said. “A lot of it is lakefront or acreage.”
Waterfront and acreage properties are considered luxuries. “It’s not something the average buyer can aspire to,” she said.
Area buyers tend to be first-time buyers in their 20s or early 30s, but some migration from southern Michigan is also taking place. “People are coming in from downstate,” Richardson said. “They left their jobs or got buyouts.”
Despite the recent collapse of the subprime lending system, mortgages are still available and attractive for buyers with good credit scores, she said. The no-down payment mortgage aids buyers, as well as new incentive programs that eliminate the closing cost. “The seller pays all closing costs,” Richardson explained. “You raise the selling price. The seller then gets out with all proceeds at closing and the money is there to cover closing costs.”
While she takes an optimistic attitude, the uncertainty of the future causes her concern with the recovery of home values likely to come as a response to growth in the local job market and industry’s ability to attract higher paying jobs. “In another five years, we could be worse off,” she said. “We all might be selling our homes for 50 cents on the dollar.”
Residential real estate sales in the Wexford/Missaukee market
• February 2007 sales: 65
• Year to date sales (as of February): 127
• Percent change over same period last year: + 5.8 percent
• 2007 average sale price: $101,500
• Percent change over same period in 2006: + 1.4 percent
Source: Michigan Association of Realtors
Source: http://www.cadillacnews.com/articles/2007/04/23/news/news01.txt
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