Upturn seen for region's slumping home sales
Bargain prices may dry up by spring, experts say
BY JOHN GALLAGHER
FREE PRESS BUSINESS WRITER
November 22, 2006
The nation's top realty agent -- amid more bad news for metro Detroit's slumping housing market -- predicted Tuesday that homeowners could see a rebound in the coming months.
If true, an upturn would be good news for frustrated Detroit-area sellers. The market saw the sharpest decline in median prices for existing single-family houses during the July-September quarter of any of 148 metro areas in the nation, according to the National Association of Realtors.
The median price in metro Detroit -- half sold for more, half for less -- was $154,100. That is down 10.5% from the same period in 2005, when median prices in the metro area stood at $172,100.
Pat Vredevoogd Combs, a Grand Rapids Realtor who became president of the National Association of Realtors this month, said the current market transition -- what some call a slump -- is good news for buyers.
"This window of opportunity will continue into the new year, but inventories are starting to decline and sellers will be less willing to negotiate when conditions begin to balance in most areas around early spring," she said.
David Lereah, chief economist for the national Realtors, echoed that Tuesday.
"Last year we had a record sales market and historically tight supplies of homes with buyers bidding over the asking price," he said. "Under these circumstances, it's no surprise that overall home prices are slightly below a year ago. We expect this trend to continue in the months ahead, but we'll see modest appreciation in most of the country in 2007."
Tell that to Ruby and Willie Jennings, who have been unable to sell their northwest Detroit ranch-style house for the past few months. The Jenningses, both in their 80s and thinking of relocating to a group living arrangement, have cut their asking price to $112,000 from an initial $119,000.
"It was sold, we thought, at one time," Willie Jennings said last week. "The purchaser backed out. No one has made an offer since."
Figures from the Michigan Association of Realtors show that the biggest declines in home sales during September occurred in both Monroe County, where sales of existing houses were down nearly 32% compared with the same month a year ago, and in Livingston County, where sales were down 26% during September.
Lesser declines were reported in Oakland County and in suburban Wayne County.
The Detroit Board of Realtors, covering the city, reported sales up 6.6% in September. Statewide, sales in Michigan were off more than 14% in September.
For the nation as a whole, the median price of an existing single-family home in the July-September period was $224,900. The priciest market: the San Francisco-Oakland area, where the median sale price was $749,400. Neighboring San Jose-Santa Clara, Calif., was right behind with a median sale price of $747,400.
The most affordable markets: Decatur, Ill., and Youngstown, Ohio, tied for the lowest median sale price at $86,000.
Bargain prices may dry up by spring, experts say
BY JOHN GALLAGHER
FREE PRESS BUSINESS WRITER
November 22, 2006
The nation's top realty agent -- amid more bad news for metro Detroit's slumping housing market -- predicted Tuesday that homeowners could see a rebound in the coming months.
If true, an upturn would be good news for frustrated Detroit-area sellers. The market saw the sharpest decline in median prices for existing single-family houses during the July-September quarter of any of 148 metro areas in the nation, according to the National Association of Realtors.
The median price in metro Detroit -- half sold for more, half for less -- was $154,100. That is down 10.5% from the same period in 2005, when median prices in the metro area stood at $172,100.
Pat Vredevoogd Combs, a Grand Rapids Realtor who became president of the National Association of Realtors this month, said the current market transition -- what some call a slump -- is good news for buyers.
"This window of opportunity will continue into the new year, but inventories are starting to decline and sellers will be less willing to negotiate when conditions begin to balance in most areas around early spring," she said.
David Lereah, chief economist for the national Realtors, echoed that Tuesday.
"Last year we had a record sales market and historically tight supplies of homes with buyers bidding over the asking price," he said. "Under these circumstances, it's no surprise that overall home prices are slightly below a year ago. We expect this trend to continue in the months ahead, but we'll see modest appreciation in most of the country in 2007."
Tell that to Ruby and Willie Jennings, who have been unable to sell their northwest Detroit ranch-style house for the past few months. The Jenningses, both in their 80s and thinking of relocating to a group living arrangement, have cut their asking price to $112,000 from an initial $119,000.
"It was sold, we thought, at one time," Willie Jennings said last week. "The purchaser backed out. No one has made an offer since."
Figures from the Michigan Association of Realtors show that the biggest declines in home sales during September occurred in both Monroe County, where sales of existing houses were down nearly 32% compared with the same month a year ago, and in Livingston County, where sales were down 26% during September.
Lesser declines were reported in Oakland County and in suburban Wayne County.
The Detroit Board of Realtors, covering the city, reported sales up 6.6% in September. Statewide, sales in Michigan were off more than 14% in September.
For the nation as a whole, the median price of an existing single-family home in the July-September period was $224,900. The priciest market: the San Francisco-Oakland area, where the median sale price was $749,400. Neighboring San Jose-Santa Clara, Calif., was right behind with a median sale price of $747,400.
The most affordable markets: Decatur, Ill., and Youngstown, Ohio, tied for the lowest median sale price at $86,000.
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