Here’s a look at the Local Market stats for 2011. Every year local Realtors receive an Annual Report of our local market from Closser and Associates. We haven't received this yet, but I'm always anxious enough to want to take a look at things myself. I review with the same parameters that they do. They examine single family homes and condos in the Marquette School District areas (Marquette City, Marquette Twsp, Chocolay, and the portion of Sands Twsp in the Marquette Schools.) I have done the same, and compared 2011 to 2010. Here are my results:


Things look a little SOFT.

The Number of Homes Sold were slightly down, Median Sales Price is down, but Days on Market were fewer. Lets take a look at the details: 

Units Sold:
2010 - 287
2011 - 258  - decrease of about 10%

Median Sold Price:
2010 - $152,000.
2011 - $145,500.  - decrease of about 4%

Median Days on Market:
2010 - 146
2011 - 88 - nice  improvement.

I had examined the market several times throughout the year and we consistently hit the same median price time and time again, at $150,000., which was a little down from the previous year, but not by much.  But by the very end of the year that number slipped.  It might be hard to remember, but in 2010, for the first half of the year the first time home buyers credit was still in effect.  So, it does stand to reason that some "volume" of sales would be down this year.  It seems that, with the days on market decreasing substantially our takeaway might be that sellers decided to reduce their price, and have it be their home, that was the one to be SOLD. 
If we were to take a little longer viewpoint of our market over the last fiveyears -- the years in which the national real estate market really took a spin -- our market has remained very STABLE. In '07 our Median Price was STABLE with the year before, in '08 it was STABLE again, in '09 we saw a 7 % decrease in Median Price (the first significant drop in years), in 2010 we increased by 7% to bring us right back up to that same $152,000. mark,  and in 2011 we have a slight decline. 

Lets take a look at the higher-end market, above $250,000. 

HIGHER END: Same geographical areas - Sales over $250,000. in sales price
2009: Units sold: 26, Median Price: $312,875.
2010: Units sold: 40, Median Price: $304,325.
2011: Units sold: 42, Median Price $300,000.  Days on Market down from 143, to 104. 

Personally, I believe there is pent up demand in the higher priced market and we will see good sales in 2012.  We seem to already have an uptick in recent months, (and an incredibly busy January) with several higher end homes pending right now.   

Highest Priced Home Sale:
2008= $900,000., 2009 - $555,000. 2010 - $545,000., 2011 - $587,000. 

Chocolay and Sands:   
Chocolay and Sands townships had a greater number of home sales than the previous year, but the Median Sales Price dropped.  That would make me believe that the increase in sales was perhaps in the lower end,  translating into a lower median sales price.  However, a bit of good news for this area was that there were twice the number of homes sold over $250,000. this past year.  10 sales instead of the 5 that occured in 2010!  This little market shows how come, when someone asks me, "How is the market", my answer is, "It depends".  An experienced Realtor will be able to disect the market for you to reflect whats going on in your Area and Price Range. 

Negaunee and Ishpeming:
Negaunee City and Township: This area was consistent with regard to the number of sales (71) as the previous year (78) and about the same Days on Market (117), (113), however the Median Sales Price dropped about 15%, to  89,000. from 109,000.  (Note:  smalll sample.) The higher end (over $250,000.) market looked similar to the previous year: 4 sales compared to a previous 5, with a 2011 median price of $261,250. 

Ishpeming City and Township: This area improved slightly.  The number of sales went up to 88, from a previous 76.  Days on Market fell to 92, from a previous 127. Median Sales Price increased to $65,000. from a previous $63,250.  This area only had one sale over $250,000. each of the last two years.  This sale price was $265,000. in 2011. 

These stats are tentative right now. I’ll report back on the “official” results on the Marquette School District Area after we receive Clossers report, in early February. As usual, please feel free to contact me if you would like any local real estate information, have questions, or if you are thinking of buying or selling.

3rd Qtr 2011 - Look at Marquette & surrounding areas Real Estate Market

Thought I'd take a comprehensive look at the market as of the 3rd Quarter.  Keep in mind that half of last year (2010) the Federal First-Time Home Buyers Credit was in place. Therefore, we might expect that some of the Volume of homes sold might be down this year in comparison.

This is a comparison of Jan - Sept 30, 2011 (first number) to the same period of time in 2010 (second number).  Can sum it up in two words - CONTINUING STABLE - but I'll run through the details for you: 

Marquette Schools Areas 2011 to 2010:  Stable, stable, stable. 
Units sold: 216 to 217.
Median Price: $$150,000. and 150,000!!!! Exactly the same.   
Days On Market: 95 to 93. 

Marquette Schools Over 250K in sold price, 2011 to 2010.  Good improvement.
Units sold: 36 to 29.  24% increase. 
Median Price: 297,000. to 299,650. Pretty even. 
Days On Market: 107 to 145.  Improved.

The Marquette School District areas continue to look very stable. The higher-end market is at least seeing some growth in sales activity.

Chocolay/Sands area 2011 to 2010:
Units sold: 71 to 54.  31% increase.
Median Price: $149,900. to 173,000. 13% decrease.
Days On Market: 104 to 86 last year.  Up a little.

Chocolay and Sands areas are consistently very stable. Though the median price appears to be dropping, this is a small sample so I dont put much credence behind that right now.   A nice increase in the number of homes sold.  Maybe more affordable homes have been selling and therefore driving down the median number. 

Negaunee areas 2011 to 2010:
Units sold: 57 to 59.  Virtually the same.  
Median Price: $89,000. to $106,400.  Down by about 16% (but a small sample size).
Days On Market:  89 to 114.  Selling faster. 

Ishpeming Areas 2011 to 2010:  Turning around a bit. 
Units sold: 63 to 58. Increase.
Median Price: $65,000.to $57,000. 14% increase.  Nice!
Days On Market: 71 to127.  Nice drop in DOM! 

Good signs for a rebound for Ishpeming, as these same areas saw about a 25% decrease in median sales price in the preceeding 2 years.

ALL OF MQT COUNTY:
Units sold: 402 compared to 421 last year.  
Median Price: $122,450. compared to 122,000.  Nearly identical.  
Days On Market: 98 this year compared to 110 last year.  Again very close. 

We are so fortunate that again, our market appears to be such a STABLE market. Overall the median sale prices are holding steady with last year, as are the number of homes sold. Days on Market in most cases are decreasing, meaning quicker sales (and lending alone is taking a bit longer which lengthens this number).  Our higher end market is trending in a positive manner as well (though I only examined the Marquette area for those sales.)

Please contact me if you have any market questions, and/or any general real estate needs.

Market Stats Update - July 2011

Since it is mid-year already, I thought I'd take a comprehensive look at the market.  Remember that until this time last year (2010) the Federal First-Time Home Buyers Credit was in place.  Therefore, we might expect that some of the Volume of homes sold might be down this year in comparison. 

This is a comparison of Jan - July 30, 2011 to the same period of time in 2010. 

Marquette Schools Areas:
Units sold: 154, down 10%.
Median Price: $152,950., up 5%. 
Days On Market: Equal

Over 250K
Units sold: 30, up 50%.
Median Price: Basically equal
Days On Market: DOWN from 176, to 102.

Inventory:  Currently there are 244 active listings in this area.  This represents about an 11 month inventory.  In the above 250,000. range, there are 90 active listings, representing about a 21 month inventory. 

The Marquette School District areas continue to look very stable.  Even though the current median price is a bit above the median in July 2010, $152,000. is actually the exact number for our normal end of year median.  The higher-end market looks to be coming back nicely.  

Chocolay/Sands area:
Units sold: 51, 11% increase.
Median Price: $142,500., down 14% (but small sample size may effect)
Days On Market: UP from 82 to 127.

Over $250K:
Units sold: 7, up by one.
Median Price: too small of a sample to be accurate. 
Days On Market: DOWN from 288 to 162. 

Chocolay and Sands areas are consistently very stable.  Though the median price appears to be dropping, this is a small sample so I dont put much credence behind that right now. 

Negaunee areas:
Units sold: 43, down only slightly.
Median Price: $89,000.  Down by about 13% but a small sample size. 
Days On Market: DOWN from 119 to 103. 

Over $250K:
There were only 2 homes sold in Negaunee City or Negaunee Township in the past 7 months in this price range, and this is the same as last year at this time.  The median price is also about the same as last year.   I did not report on the DOM because its not picking up some of the data correctly, so the number is inaccurate. 

Ishpeming Areas:
Units sold: 49, equal.
Median Price: Up by about 18%
Days On Market: DOWN from 159 to 69

Over $250K:
Only one home sold over $250K in each of these years.  Median price looks similar, and it looks like the sale this year was on the market for a much shorter period of time than last year. 

Good signs for a rebound for Ishpeming, as these same areas saw about a 25% decrease in median sales price in the preceeding 2 years. 

ALL OF MQT COUNTY:
Units sold: 298, down about 14%.  (Likely from the First Time Buyers Credit last year.)
Median Price: $120,000., up about 3.5%
Days On Market: Down slightly from 119 to 98.

Over $250K:
Units sold: Up from 23 to 35, or about 50% increase. (Most of all of these sales were in Mqt. Schools.)
Median Price: Up slightly.
Days On Market: DOWN from 182 to 99.

Question:  "Whats the Foreclosure and Short Sale activity in Marquette COUNTY?"
Fifty (50) units sold since Jan 1.  45 Foreclosures and only 5 Short Sales.  Though our area has not been hit like other parts of the country, I believe that this number may be low because some agents have not utilized the fields available to identify these sales in the MLS software.

In general -- our market once again appears to be a VERY STABLE market.  Overall the median sale prices are holding if not increasing a bit.  Days on Market in most cases are decreasing, meaning quicker sales.  Units sold are up and down depending upon the area, but this is the one number that is most affected by government incentive programs that were inflating this number last year.  Our higher end market is trending in a positive manner, though inventory numbers for higher end homes are still high. 

Please contact me if you have any market questions, and/or any general real estate needs.

The Closing Process 2011 (Post 7) Home Buyer Seminar

Once you have an accepted offer on a home there are steps to take to get to the closing table and get the keys to your new home.

The closing process usually takes a minimum of 30 days. If you have a "specialty" loan, such as a FHA, Rural Development, etc. the closing process takes a bit longer (45 days) because there are a few additional steps for your loan.

Generally the Closing Process consists of the following steps, which are best done in chronological order:

1) Final signatures on all documents, and paying your earnest deposit to the broker.

2) If not already done, you will confirm who you are lending with and copy the Realtors on your Letter of Committment. (You will be working together with your Lender throughout the process to satisfy all of their requirements.)

3) Scheduling and conducting your Home Inspection. (usually first 10 days)

4) Given your "go ahead" following the Inspection, your Lender will order the Appraisal (another 7-10 days).

5) Title work will be ordered, received and reviewed.

6) Deed will be ordered.

7) With all else completed and your final loan approval coming out of Underwriting, a closing date is scheduled.

8) You confirm to your Lender that you have Homeowners Insurance, and make calls to switch utilities into your name for the date of closing.

9) Parties meet at the Lenders or at the Title Company and conduct the actual closing (signing documents). Most often you will take possession directly afterward!!! :}

10) CELEBRATE!

HOME BUYER SEMINAR 2011 (POST 6) - HOW MANY TIMES DO I NEED TO GET MY WALLET OUT?

We're not talking about downpayments or closing costs here, but instead, “How Much Will it Cost Me Between Writing an Offer and Closing on My Home?” Even if you are thinking you have a zero down loan, you still need to have some available resources to get started.

I operate under the “no surprises” rule, so lets go over how many times you may have to get your wallet out, during the closing process:

Earnest Deposit: An earnest deposit is written into the offer to purchase. It’s also known as your “good faith” deposit. It shows the seller that you are a serious buyer, and is held in the Real Estate Company's trust account until closing. The most common amount is close to 1% of the purchase price of your home. A $120,000. home, would likely have a $1,000. deposit. A $275,000. home may have a $2,000. – $2,500. deposit. If you have a specialty loan and have limited funds, we can sometimes get by with a $250. earnest deposit. We will offer what you want and see if the seller will accept it. Your Realtor will need to have this money within 2 days after you are officially under contract. Your check will be deposited – not just held. This is not an ADDITIONAL cost to home buying, as this money will be applied directly to the purchase price of your home at closing.

Inspection: If you choose to hire an Inspector you will contract with them “outside of closing”. This simply means that this transaction is not a part of the closing process. You schedule the inspection and pay the inspector directly for his services. Generally inspections cost $300. – $400. and are payable at the time of the inspection. If you choose to have your inspector conduct additional tests such as water tests, radon tests, etc. you will be charged for those additional fees.

Specialty Loan Requirements/repairs to the home you choose:Depending upon the loan you are getting, the home may have to meet certain structural requirements. You could be responsible for correcting any deficiencies prior to closing on the home. (I know, it seems odd to be doing repairs on a home that you don’t own yet, but this is just the way it is sometimes!) Obviously we attempt to minimize these items and discover them as early as possible. A common requirement is that you could have to install a GFI electrical socket, or put a railing on a stairway. So you could need to have the financial wherewithal to accomplish these repairs. These fees could be any amount, but I've most often seen pretty minimal requirements so in general estimate: $100.

Lender Application Fees: Your lender oftentimes will require an application fee that is likely to be around $300. Ask about the possibility of this fee when you first meet with your lender.

Utilities: Sometimes a utility company could require a deposit or establish account fee. Most often these will show up on your first bill, so may not be an issue up front.

Insurance: Generally your lender will require that your annual home owners insurance be paid up front and that you bring in a rider showing that you have your policy in place and that it is paid for. Inquire more about this with your lender. Insurance costs are all over the map, I would estimate that a starter home could possibly have insurance costs as low as $300.

NOTE: It is difficult to estimate fees that could vary based on the prices of homes, various lender policies, and your own choices. This is intended to let you know about the existence of these fees rather than estimate the amounts -- but, it sure is better to know ahead of time that you're going to need some cash up front.

No surprises, right? ~ Liz

End of April Market Stats

Just took a look at our local market stats for the end of April, in the areas of the Marquette School District. (Mqt City, Twsp., Chocolay and Sands Twsps.)  I compared 2011 to 2010. 

ALL PRICE RANGES:

# Solds: down from 81 in 2010, to 70 in 2011.

Median List and Sold Prices:  down slightly, 2010 - $144,900./140,000.  2011 - $140,000./$138,000. 

Days on Market: down from 120 to 102.

OVER $250,000. SALES:
# Solds: down slightly from 12 to 11 this year.
Median List and Sold Prices: up, $284,950./$276,116 in 2010. 2011 - $329,900./312,000. 
Days on Market: down from 187 to 99! 

Quick peek at over $300,000.  Five sold by this time last year, six sold this year. 

Observations:  Last year the market was still dealing with the First Time Home Buyer Tax Credit which affected the first set of numbers - the general market - with much more activity last year.  That would have accounted for the larger number of sales last year, and also the higher median sales price because there was more competition for those homes last year.  

It does appear that our higher end market is continuing to trend upward.  The median sales price is higher and the days on market is way down.  Only qualifier here, is that these are fairly small samples.  Across the board the List to Sold price ratio is about 95%. 

HOME BUYER SEMINAR (Post 5) - Obtaining Your New Mortgage!

I asked Kristen Derocha of River Valley Bank in Marquette, if she would be a guest columnist for the Home Buyer Seminar. She was kind enough to provide the following, regarding the process of getting that "all important pre-approval" and ultimately your new mortgage. Kristen would be a great choice to meet with to inquire about your next mortgage -- you'll find her to be friendly, helpful, knowledgeable and sincerely there to help you accomplish your goals. Her contact information is listed below.


1. What advice do you have for those seeking a first home mortgage?Buying your first home can be an overwhelming experience for anyone. With the help of an experienced Mortgage Banker, that experience will become easier. Choosing a Mortgage Banker that is compatible with your personality assures you that your experience will be a positive one. Your Mortgage Banker will provide you with the proper tools to pre-approve your application quicker and choose a team that will make your dream a reality.


2. What personal finance info. does one need to gather in order to apply for a home mortgage?



Bringing all of the pertinent information to your Mortgage Banker in a timely manner a key factor to help your team qualify you faster and help you decide on the home that is right for you. This information may include the following:Your 2 most current W2s2 most current paystubs Last 2 months checking and savings statements from your bankStatements from your current retirement accounts (i.e. 401K, stocks, IRA’s)If you are self-employed, copies of your last two years tax returnsIf you are refinancing, a copy of your current homeowners insurance policy



3. What should someone do if they're turned down?



Not every situation is going to qualify for a mortgage. Work with your Mortgage Banker to get the specifics on why your situation does not meet the lending guidelines. Your Mortgage Banker will guide you to the path to improve your situation and get you in a home faster.



4. When is it advisable to refinance your home mortgage?



Your Mortgage Banker will give you options that may reduce your current mortgage payment, help you reduce the length of your mortgage and/or roll in other outstanding debt to reduce your overall payments. Typically, homeowners refinance when they can save over 1% in their interest rate or shave enough off of their monthly payment to make it worth while to them. Ultimately, only you will be able to make the decision on whether or not it is the right time for you to refinance your home.



5. What should one look out for when refinancing?



Working with a reputable Mortgage Banker is essential to the success of your refinancing needs. It is extremely important to make sure you are getting “the whole picture” when looking at things such as rate, term, points and closing costs. Make sure that you get a Good Faith Estimate from your Mortgage Banker so that you can be assured of what the total cost of your transaction is going to be and that the payment amount is in line with your budget.



6. How can an applicant best help the refinancing process go smoothly?

Working with your Mortgage Banker and supplying all of the required documents in a timely manner will help your refinancing process go smoothly. It is a team effort to gather all of the information to submit your application and get your loan closed quickly.



Make every moment an Incredible one!!!
Kristen A. Derocha
Mortgage Banker
River Valley Bank
1140 W. Washington St.
Marquette, MI 49855
Direct Phone (906) 226-1393
Cell Phone (906) 361-4101
Fax (906) 226-0290
kderocha@rivervalleybank.com


Thank You Kristen!

Now go get pre-approved! ~ Liz