.

Grosse Pointe Housing Market Remains Robust

Grosse Pointe Housing market continuest to remain stable, and even improve. For a while most of us were afraid to say our market was improving, but it is now clear it was and still is.

  What is my home worth?  Its a simple question, and one that is probably often running through your mind.  After all, home ownership has traditionally been one of the biggest keys to building overall wealth.    Over the past 5-6 years, it has probably been one of the biggest factors leading to an ulcer. 

  The housing market was supposed to be different than the stock market.  Just slowly continuing an upward trend.  No breathtaking ups and downs.  We quickly learned that even the housing market has its ups and downs.  What hasn't changed, is that owning your own home is still one of the best ways to build overall net worth.  It still a very good financial decision to purchase a home. 

   The real estate market in the five Grosse Pointes continues to be stable if not robust.  Currently there are 209 single family homes on the market in the five Pointes. This number does not include any pending sales, or any homes that are under contract and awaiting short sale approval.   This is a significantly low amount of inventory. Another positive sign is that 33% of our market is a pending sale, meaning under contract.    As I have mentioned before in this blog, during our darker days several years back, we had over 800 homes on the market with less than 10% of the market pending.    

  There are some people who love stat after stat, and others who really get bored quickly with this data, but I thought I would share a couple of other noteworthy statistics.  Between January 1, 2011 and October 8, 2011 there were 419 homes  sold in the five Grosse Pointes.  Between January 1, 2012 and October 8, 2012 there were 553.  A significant jump, and an indicator of a healthy stable market.  Now the next question is always price.  Although I believe overall that prices have gone up about 8-10% this year, I don't have the data to support this statement.  It is hard to generalize that, and it really differs depending on what price range you are looking at.  What I do have the data to support is that the average sale price in the five Grosse Pointes from January 2011-September 2011 was $182,456.  The average sale price from January 2012-September 2012 was $213,445.  Forget all the numbers.  All you need to know is that more homes are selling at higher prices.

    I know there are still people out there waiting to sell their home.  There is much less competition right now than we have seen in quite some time.  Its a very good time to get your home on the market.  One thing we hear from people is that they do not want their home on the market during the holiday season.  As it turns out, its often one of the best times of year to sell.  Your house looks its best decorated for the holidays, and there is less competition.  Now is the time, especially if you are looking to upgrade.  If you have any questions, or are unsure how to get sell a home with negative equity, contact your local Grosse Pointe Board of Realtors Member.  We have the tools and connections to help in almost any situation.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Pete Waldmeir, GP Woods October 09, 2012 at 06:56 PM
Oh Chace, I was born at night. But not last night. I've bought and sold property. I know what the drill is. The price of anything is what people are willing to pay for it. Tell me there aren't a ton of folks upside down in this town like everywhere else and the vultures are circling, day and night.
Elizabeth M. Vogel October 09, 2012 at 07:22 PM
Chace, thanks for taking the time to write this post. Your local data is supported by the overall national trend that housing prices are moving up. The article (link to follow) was posted yesterday. I also think its refreshing that younger Pointers like Chace are taking active leadership roles in their professions and giving back to the community in which they work. http://www.usatoday.com/story/money/business/2012/10/08/cities-near-peak-home-prices/1613703/
Todd October 09, 2012 at 07:31 PM
LOL... don't get too worried about Pete. Everything is a conspiracy with him. I actually agree with you. The inventory has been extremely low in GPF. Our neighbors routinely complain that they are no longer able to find upgraded housing in GPF between the $175K-$300K range. Many upwardly mobile young people are looking for those homes. For Sale signs are going up and down very quickly. All good stuff.
Quinn Smith October 09, 2012 at 07:55 PM
Chace, Thank you for a great Blog post. As someone who is "on the fence" about putting thier house on the market for fear of not making what I owe, It is nice to hear from someone who has the hard numbers in front of them how the market is doing. I feel sorry that Pete has not not only put down your article, but it seems like EVERY article on the Patch. Pete, if you hate what is written on here so much, please go back to waiting for the GPNews website to get updated every Thursday...
Katie October 09, 2012 at 08:04 PM
Chace, I’m glad things are looking up, and while sales may be improving and price has somewhat stabilized, owning my own home has not done much for my net worth (sorry, but I don’t believe the value of my home increased 8-10% in the last year). I've been in my home for quite some time and did not buy when the market was high (leaving some homeowners underwater). And yet.... after the housing bubble that was created by a new Liberal government agenda that espoused ‘anyone should have the “right” to homeownership’ (whether they can afford it or not), combined with newly relaxed lending rules that in the 'old days' would have landed people in jail… creating a colossal Welcome Sign for greedy bankers and 'get rich quick' Wall Street "players" (I refuse to call them investors as they give legitimate investors a bad name) and the ancillary fraud perpetrated by bought off appraisers by illegitimate flippers.... Given the present value of time, it will take more than a few years of 8-10% price increases to get back to a healthy value for homes in my area.
Katie October 09, 2012 at 08:21 PM
i.e. time value of money....
GP For Life October 09, 2012 at 08:42 PM
Pete, I have to agree with Chace's assessment of the market. The only true function of a market is price discovery which is accomplished by bringing buyers and sellers together. The housing market iis unfrozen. For a number a years the bid-side of the market was no where to be found. Chace, good article, if a little bullish. I would have to say though, I wouldn't want to be on the ask-side of this market.
Katie October 09, 2012 at 11:28 PM
Chace, here's another thought. While your enthusiasm for the real estate market is admirable – and trying not to sound condescending - keep in mind that it depends upon your perspective. For example, based upon your posted photo, you look like a relatively young guy. Perhaps you purchased your home recently, in the down market as a deal - or not. The point is, everyone has a different perspective right now depending upon their circumstances. For first time young home buyers in a down market real estate has been a great deal and most certainly a boost to future net worth - time is on their side. For the "players" that got in and got out (and not caught/prosecuted) during over-inflation and fraud - they did well. For others who bought high and are under water - their net worth took a hit and it will take a very long time for them to recover or buy/sell without taking a loss. For others who have been in homes for a while, while they might not be in trouble, it hasn't added much to a portfolio. Bottom line - it depends upon the situation and respect for that is warranted. Real estate has traditionally been a winner whether homeowner or investor. Legitimate deals used to be done on a handshake (no I’m not a senior citizen). I don't think that will ever happen again, but hopefully the market will recover and for those that have taken a hit - hopefully recovery will be swift. Thanks for your update, your enthusiasm and Godspeed.
John F Martin October 10, 2012 at 09:29 PM
Pete, I love your rants, but you're dead wrong here, and I speak from experience as a person in the market for a new home. Chace nailed it. If anything, I would say 'robust' is too mild a word. This market is out of control right now. In August, we saw three homes on the day they listed, made one offer and tried to make the other two. In all cases, the homes were sold within a couple hours and OVER asking price. No exaggeration. We saw one at 4pm and it was sold by 6pm.
Chris K October 10, 2012 at 11:24 PM
John: Was your search restricted to any particular Grosse Pointe. I am no realtor but I am hearing houses are selling faster in some Grosse Pointes than others and if that is true it could be for a variety of factors. It would be nice if Mr. Wakefield could educate on prices in specific Pointes probably by a percentage increase (or decrease) as so often I hear square foot is not a good measure.
Ted October 14, 2012 at 12:22 AM
I look forward to posts from car dealers telling us it is a good time to buy a new car and trade in the old one and from insurance agents telling us it's a wonderful time to increase our coverage or open a new policy.
George R. McMullen Jr. October 14, 2012 at 12:36 PM
Chace join the club I have had typo's forever.... you made your point, and thanks for your time a very positive report. Thanks for writing
George R. McMullen Jr. October 14, 2012 at 12:43 PM
Chace again you it appears you and I are members of another club as I wrote above "We are human and make grammatical/typo errors club” and the “We aren’t most likely on the “Mr. Waldmeir holiday card list club” A big welcome and as the founding member and President you are approved for membership. Again thanks for writing and hope to see more updates from you….very informative
Julie Lattimore October 14, 2012 at 01:42 PM
I'm moving out of my home, 234 Touraine. I've lived in it for ten years now and needed to put so much money into it that I expect to lose at least $700,000. I don't care how you paint it, the loss is huge!
Bill Raffoul October 14, 2012 at 02:19 PM
Appreciate the good thoughts, but here is fact for you. 5 years ago my house appraised for 980,000. Had it appraised 2 weeks ago for 440,000. If the school board continues to let our school district go down , increase in home values will never come back.
Janet Braunstein October 14, 2012 at 02:49 PM
Katie, you're right about the push to make home ownership available to more people, and about the relaxation of regulations that let predatory lenders give substandard mortgages to people who couldn't afford them. Substandard means higher credit risk and higher, sometimes punitive, interest rates. But no liberal government did this. The Bush administration did this, using the desire to open home ownership to more Americans as justification for relaxing the rules that would have prevented those. The only winners were the banks and mortgage companies that wrote those loans, then sold them in bundles as mortgage-backed securities. The majority of the banks involved are being reimbursed for bad loans by taxpayer-subsidized Fannie Mae. That's also why banks have been hugely reluctant to renegotiate mortgage terms that let owners stay in their homes. They do better if they foreclose and get every penny back.
Katie October 15, 2012 at 12:28 PM
Hi Janet, Thanks for clarifying ...this did happen under the Bush admin. - what I meant to say was - that administration's liberal (adjective) lending policy/agenda hurt the real estate market and legitimate homeowners.
Anthony J October 15, 2012 at 05:17 PM
Janet and Katie, respectfully, do better research. This housing downslide has it's roots in the Clinton administration. Look up Community Reinvestment Act and google Barney Frank's(chair of committee charged with oversight) strident defense of same. Bush actually spoke out about potential negative effects of RCA. Not defending predatory lending acts, but when the fed govt tells you that you will be prosecuted if you don't make these bad risk loans, what would you do? Especially when Fannie Mae backs the loans. If you want a villain to blame, their are many, from which to chose--but Mr. Frank is at the top of the list.
Tommy October 15, 2012 at 08:38 PM
I don't agree with Chance. Here are the Facts....I had my house on the market in GPF from the spring of 2011 to the spring of 2012. The home was priced $30,000 below my assessed evaluation by the GPF assessor ad the house has a beautification award from the city of GPF. I received ONE and only One offer on the house in 2012 after over 30 people looked at the house and the offer was an insult since it was over $50,000 dollars less than my assessed evaluation by the GPF assessor. Like Chace Sales Pitch but that is all it is, is a Sales Pitch.
Tommy October 15, 2012 at 11:59 PM
Janet you are dead wrong. "GET YOUR FACTS STRAIGHT" IT WAS THE DEMOCRATS ! ! ! This all started with a Democrat Jimmy Carter in 1977 who passed a bill when he wanted to offer low cost options to individuals to purchase a home...http://en.wikipedia.org/wiki/Community_Reinvestment_Act....Then Slick Willie Clinton another Democrat in 1993 asked regulators to reform the CRA Bill and FORCED Banks to give Loans to low income individuals and if the Banks didn't the Banks would be Fined.. DON"T BLAME BUSH. He didn't want it......
Chace Wakefield October 16, 2012 at 01:56 AM
This article is not a sales pitch. If you must view it that way, the only thing I am really selling here is YOUR neighborhood. I am happy to report that the market has stabilized, and prices have edged up this year. Everyone should be happy about this as well. Is it better when we report all negative housing news? I wouldn't be so quick to make sure you shoot down the idea of one of your largest investments actually turning the corner and looking a bit better. Yes, I understand there are many people still under water in their mortgages. This article should give some glimmer of hope that better days may still be ahead. I was asked to do this blog by Patch, and this is probably the third or fourth installment. I will continue to do them because I think people need this info, and like it or not the only place you will get it is from a Real Estate Professional.
Chace Wakefield October 16, 2012 at 02:02 AM
Your State Equalized Value and Taxable Value does not always reflect your homes market value. With how quickly values fell during the past few years, SEV's and Taxable Values were out of whach all throughout our area and beyond. If you want to know what your home is worth, get a fee appraisal from a LOCAL fee appraiser, or get a Broker Price Opinion from a Real Estate Broker. Dont ever just double your SEV.
Tommy October 17, 2012 at 08:47 PM
Chace, Your comment "Your State Equalized Value and Taxable Value does not always reflect your homes market value" I know this. I am no kid. "Supply and Demand". I learned this in Economics in college before you were probably born. My comment was directed to the Real Estate agent that listed my house and only cared about their 6% commission and wanted me to take the low ball offer. When I said the offer was $50,000 below my GPF assessors appraisal of my home I want you to know two home similar to mine on the same block with SEV per the Wayne county records sold close to their SEV . So my home was priced correctly and even lower than the other two homes. You look very young and haven't experienced the real estate market like I have for many years. As far as your Sales Pitch that now is the time to list. I have probably heard that from real estate agents thousands of times over the years and yes real estate agents say that continuously year after year. Amen
Chace Wakefield October 18, 2012 at 03:16 PM
A couple of the above comments referenced my age and experience. I ignored it before, but I guess if it keeps coming up it should be addressed. I am 34 years old. I have been in real estate for about 8 years now. I am a real estate broker, not just a salesperson. I have closed 150+ transactions. I have done everything from flipping houses to owning apartment buildings. I am the current President of the Grosse Pointe Board of Realtors, and was named their Realtor of the Year this year. In no way am I trying to float my own boat here, but I dont really think my credibility should be questioned.
John F Martin October 18, 2012 at 03:47 PM
Good lord, people. Read the column for what it is - an assessment of the market based on actual data. Got a house that's underwater? Join the club, but that doesn't negate anything stated in the column. And calling into question Chace's age and experience is petty. And to you Chace, don't listen to Tommy or anyone else not willing to step out from the veil of anonymity.
Tommy October 19, 2012 at 03:01 PM
Chace, Is that a recent Photo? You look so young, Didn't know you actually sold real estate on a full time basis since the average real estate agent median salary for a typical Real Estate Sales Agent in the United States is only $37,390 which is way below a teacher or police officer . I have a friend who is a Broker and is in his eighties and has been in the real estate market for over 60 years and is a seasoned veteran and he still works. He told me in 2008 the housing marker would take two years before a turn around and it is now 2012. He now says it is still not a good time to list a house since the housing market just started to recover and he recommends waiting at least three years before listing a house. The market lost as much as 40 to 50% of a homes value in the past few years and is only recovering at a real slow pace in the low single digits. It will take three years just to get it back to 15 to 20% which means most home owners are still way below their home values of 40 to 50%. of just a few years ago. Don't know if you ever had an Economics class in school but in "Supply and Demand" The stronger the demand is the faster the homes value will rise. Therefore, with many home owners holding back to list their home and with less listings on the market, now is not a good time to list a home for sale per my Broker Friend with over 60 years of real estate experience under his belt.
Tommy October 19, 2012 at 03:08 PM
John Martin. What are you some kind of wise guy. Mind your own business. How was I to know Chance was 34 years old . His picture looks like a High School Kid and looks like someone new to the real estate gig. I have heard real estate agents for many, many years use the old Sales Pitch "Now is the time to Sell" or "Now is the time to Buy". It is a buyers Market now and not the best time to list a home to sell.
Tommy October 19, 2012 at 07:46 PM
Chace, Your Comment "A couple of the above comments referenced my age and experience" If you were questioning my statement I am no Kid. I was referring to myself and not you. I never said you were a kid. Read my statement. If you are that sensitive and read something else into it than you are jumping to conclusions and since you had to comment to that it appears I was not the first person recently that was surprised when you told them your age. It appears when someone has an opinion that doesn't agree with you it bothers you. People have different opinions and you should learn to accept it. My other comment that "I learned this in Economics in college before you were probably born" I was making a statement about my real estate experience and that was a general statement since I did this before you were born.. I said probably.. I purchased my first home in the 1960's and another home a few years later. I have properties in other states so like I said I am no Kid to when it comes to knowing real estate inside and out and a lot more knowledgeable than most Real Estate Sales people and Brokers. How come if you have been selling real estate for 8 years I don't ever recall seeing you advertise a real estate listing for your homes for sale in the Grosse Pointe News or the local C & G newspaper. Oh, by the way, I have four college degrees and a Masters in Business with a major in Finance from one of the top Universities in the US.
John F Martin October 20, 2012 at 08:46 PM
I'm wise enough to read his name is Chace, not Chance. Nyuk-nyuk-nyuk.
Tommy October 24, 2012 at 08:39 PM
John F Martin, John Doe, John Smith or maybe it's really Joan Francine Martin....You must of received your GED in the Army after you dropped out of High School....Chace, Chance or Chase. Nicknames.......Some people are afraid to use their real names, like you for example ! ! !

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something