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        <title>Metropolitan Detroit Real Estate Blog</title>
        <link>http://www.markzproperties.com/blog/</link>
        <description>Metro Detroit real estate blog with news, statistics, pricing comparables, mortgage rates, and market updates, brought to you by one of the top real estate agents in the entire country MARK Z. Real Estate Team selling over 250 homes a year.</description>
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            <guid>http://www.markzproperties.com/blog/understanding-the-process-of-buying-bank-owned-properties.html</guid>
            <link>http://www.markzproperties.com/blog/understanding-the-process-of-buying-bank-owned-properties.html</link>
            <author>ltd@denhalaw.com (Lance T. Denha, Esq.)</author>
            <title>Understanding The Process of Buying Bank Owned Properties</title>
            <description> <![CDATA[ 
In today’s residential real estate market, there is a lot of interest in buying bank owned properties. Some of the information you may read about is convoluted and confusing. Therefore, let this article serve as a breakdown of how purchasing bank owned property typically works.


An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. These properties are now owned by the bank because the properties failed to result in a bid. In fact, most foreclosure auctions do not even result in bids. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees which accrued during the foreclosure process.


Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney’s fees and any costs associated with the foreclosure process. In fact before you can even bid at a foreclosure auction, you have to have the money readily available for the full amount of your bid. In the event you’re the successful bidder, you receive the property in “as is” condition, subject to the redemption rights a previous owner has available to them to come up with the money during the redemption period, if applicable. “As is” condition means the buyer takes the property and his/her own risk so there is a possibility this risk may involve someone currently residing on the property or liens being attached and are associated with the property.


A REO, by contrast, is a much “cleaner” and attractive transaction. Because the property didn’t result in a sale at the foreclosure auction, the bank now owns it and cares for it. It is now known as an REO property. As an REO, the bank will remove any tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. As an aside, REO’s may be exempt from normal disclosure requirements.


Once the property reverts, the bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.


Despite the clean title that one gets with an REO, be warned that buying one may not yield a great bargain. One should be extremely cautious and diligent about purchasing a REO if your intent is to make money off of it. In the REO arena, banks are aggressively marketing the property to get them off the books but are also attempting to maximize the sales price. As such, don’t be surprised at a counter-offer from the Bank. Banks have entire REO departments that manage this process.


Before making your offer, you’ll want to contact your agent and find out as much as you can about the condition of the property and their process for receiving offers. Most banks will not provide financing on their REOs, so if it has extensive damage you might have to pay cash. This is especially true if the property has extensive damage and you are purchasing it “as is.” Remember that REO’s sell at pretty close to full market value and are not the deals presented as advertised online or through the televisions. However, diligence could result in a great deal!
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            <pubDate>Wed, 01 Feb 2012 10:55:38 -0500</pubDate>
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            <guid>http://www.markzproperties.com/blog/market-update-in-metro-detroit.html</guid>
            <link>http://www.markzproperties.com/blog/market-update-in-metro-detroit.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Has The Real Estate Market Shifted? Sellers Market?</title>
            <description> <![CDATA[ 
Has the pendulum shifted? Have we seen the worst of the real estate market here in Metro Detroit?


#marketupdatejan17#


Supply is down 20% and buyer demand is up 6%


The real estate market is changing right before our eyes. In the last year inventory or the amount of homes for sale each month has decreased by more than 20%. This in part due to the fact that there are a lot less bank foreclosures on the market. Lenders are much more open to short sales which avoids a foreclosure.


Of the 5,139 sales last month (the fact that there were 5,139 sales last month is remarkable in itself), 757 or 14.7% were short sales. Had the lender not been open to a short sale a lot of those homes would have eventually foreclosed. In general we know demand is up because last month there were 5.8% more sales compared to the same period in 2010. So while demand is up and supply is down 20%, we are experiencing a shift in the market. It is starting to favor sellers.


Great time to pick up some investment properties


Another amazing statistic is that 46% of the transactions that closed last month were CASH sales. This means the buyer didn't get a loan and came to the closing table with CASH. I would assume a good portion of these sales were investor purchases. From a cash flow perspective, it really is a great time to pick up some investment properties and rent them out. You could let a property management company like JMZ Management, handle the entire process from leasing the home out to managing the tenant and complete process after the fact. I personally have bought two or three properties every year the past few years.


23% of the homes listed for sale are short sales


Keep in mind currently of the 25,989 homes currently listed for sale, 16% of the homes are bank foreclosues and 23% are short sales.


Multiple offers are the norm now


I currently have 7 buyer specialists on the team who only work with homebuyers and they tell me almost every offer they write is in a multiple offer situation and more times than not they are writing over asking price and still losing the bidding war. It's very competitive right now as a buyer and a great time to be a seller. The market has shifted in a positive direction and interest rates are still at record lows hanging out around 4%.
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            <pubDate>Wed, 18 Jan 2012 03:12:23 -0500</pubDate>
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            <guid>http://www.markzproperties.com/blog/obamas-new-plan-unveiled-for-struggling-homeowners.html</guid>
            <link>http://www.markzproperties.com/blog/obamas-new-plan-unveiled-for-struggling-homeowners.html</link>
            <author>ltd@denhalaw.com (Lance T. Denha, Esq.)</author>
            <title>Obama's New Plan Unveiled For Struggling Homeowners</title>
            <description> <![CDATA[ 
On October 24, 2011, the Obama administration rolled out a revamped program to help homeowners stave off foreclosures. This plan is for current borrowers who want to get a lower monthly payment through a lower mortgage rate. Proponents of the program say it would help boost the economy by relieving financial stress on homeowners and reducing their mortgage so that they would have more expendable money.


The new initiative, which involves removing barriers to homeowners qualifying for the Home Affordable Refinance Program (HARP), is the latest in a series of steps by the President to defend his mortgage relief efforts and promote his jobs and economic policies.


At its core, the latest initiative would allow homeowners to refinance regardless of how far their home has fallen in value. It scraps the current ceiling of 125% of a loan's current value. The Federal Housing Finance Agency (FHFA) also is extending the expiration date for HARP by 18 months, to December 31, 2013 for loans originally sold to Fannie Mae and Freddie Mac.


The plan would also eliminate certain risk-based fees for borrowers who refinance into shorter-term mortgages and would lower fees for other borrowers, which have been a significant deterrent for many homeowners.


HARP went into effect in the Spring of 2009, with the expectation of helping 4 million to 5 million troubled homeowners refinance their mortgages. HARP refinancing will still only be available to people who are current on their mortgage payments and who have had no more than one late payment in the last year. This plan allows homeowners to refinance their mortgages at lower rates. Borrowers can bypass the usual requirement of having at least 20% equity in their home. But few people have signed up. Many underwater borrowers — those who owe more than their homes are worth — couldn't qualify under the program. Roughly 22.5% of U.S. homeowners, about 11 million, are underwater, according to CoreLogic, a real estate data firm. As of August 31, fewer than 900,000 homeowners — and just 72,000 underwater homeowners — have refinanced through the administration's program.


Homeowners' eligibility under this program is not predicated upon the decline in home value. It should also be noted that some fees for closing, such as title insurance and loan processing will be eliminated making refinancing less expensive than normal. Banks are not required to purchase the mortgages from Fannie Mae or Freddie Mac, as they typically are required to do with risky type loans. This will allow many lenders to refinance, however a bank is not obligated to refinance even if a homeowner meets all of the requirements.


The Mortgage Bankers Association welcomed the Administration's changes to HARP but warned homeowners that the changes won't be implemented overnight. It could take several weeks for lenders to receive specific guidance and operational details to put the changes into practice.


However the question is, how many people will this new plan help? And will it be enough to jumpstart the still struggling housing market? This remains to be seen.
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            <pubDate>Tue, 01 Nov 2011 12:26:16 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/wall-street-journal-announces-top-real-estate-teams.html</guid>
            <link>http://www.markzproperties.com/blog/wall-street-journal-announces-top-real-estate-teams.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Wall Street Journal Announces Top Real Estate Teams</title>
            <description> <![CDATA[ 
The MARK Z. Home Selling Team finished number 81 in the country out of 2 Million plus Realtors on the "Top 250 Teams by Transaction Sides List" for 2011. The Wall Street Journal and Real Trends Inc. anncounced the top 1,000 real estate agents and teams for 2011 in the United States. Teams and Agents were ranked based on the total number of closed transactions in 2010. I wanted to congratulate my team on a very successful year in a very challenging real estate market. 


We are starting to see the market turn for the positive. Although we are seeing home prices increase in certain communities, we are still having appraisal issues on many houses. Foreclosure inventory is very scarse and when one does pop up on the scene more times than not, it is a multiple offer situation with offers usually over asking price. It's a great time to put your home for sale because there isn't a lot of inventory on the market and therefore you are not competing against all the foreclosures you once had to for the past 3 years.
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            <pubDate>Fri, 23 Sep 2011 10:20:28 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/to-lease-own-or-lease-to-own-your-home.html</guid>
            <link>http://www.markzproperties.com/blog/to-lease-own-or-lease-to-own-your-home.html</link>
            <author>ltd@denhalaw.com (Lance T. Denha, Esq.)</author>
            <title>To Lease, Own, Or Lease-To-Own Your Home</title>
            <description> <![CDATA[ 
To Lease, Own, Or Lease-To-Own Your Home


At some time in your life, you may have rented a home or an apartment, so you may have undoubtedly encountered a lease agreement. If you’ve ever bought or sold a house, you’re familiar with a purchase offer. The lease-to-own agreement is a hybrid of the two – a lease agreement combined with a purchase offer. Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long one intends to stay in the home.


A lease-to-own house purchase (also “rent-to-own purchase” or “lease purchase”) is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, at an agreed-upon price. The borrower pays an option fee, which is credited towards the purchase price. The borrower pays rent, and an additional rent premium that is also credited to the purchase price. If the purchase option is not exercised, the buyer loses both the option fee and the rent premium.


The sale price of the house and the rent are typically market based, however it is always subject to negotiation just as is typical in a straight purchase or rental transaction. Historical data shows that buyers are typically less knowledgeable of the market than are sellers which place the buyers at a disadvantage. Therefore it is always beneficial to have all parties, especially buyers, remain diligent throughout the process by seeking out independent, professional advice. Additionally, in these type of transactions, Buyers prefer lengthier option periods as they provide more time to build equity and repair credit whereas Sellers generally prefer a shorter option period so they can realize a more immediate return.


The option fee and rent premium are viewed differently by buyers and sellers. To the buyer, the option fee and rent premium are part of the equity in the house they will soon own. Fully anticipating that they will exercise the option, the only cost is the interest they would otherwise have earned. To sellers, however, these payments are the best guarantee that their houses will sell; if they don’t sell, the payments are retained as income.


Another possible alternative to a lease/purchase deal for consumers with poor credit and/or no cash is a sub-prime loan. Sub-prime loans continue to be available at reasonable prices from community groups or state and local finance agencies. Borrowers have to search out these sources, but if they can qualify for a loan from one of these sources, it is probably a better route than a lease/purchase.


The lease/purchase offers home ownership opportunities to consumers who can’t qualify for a loan from any source, but who are prepared to bet on themselves. The aim and goal for these borrowers is that before the option period expires, they will qualify for the mortgage they need to exercise the purchase option. During the option period, they have the opportunity to rebuild their credit and accumulate equity while living in the house.


It should be noted that consumers who need to rebuild their credit rating during the option period should understand that paying their rent on time will not accomplish this goal. Rent payment information is not used in compiling credit scores. Therefore, lease/purchase buyers who need a higher credit score must focus on their timely payments toward credit cards and other loans.


Leasing to own has advantages and disadvantages for both parties. The benefit to sellers may arise in circumstances where they currently have two homes and by utilizing the lease-to-own method, the seller will no longer have the obligation to come out of pocket for two mortgages during the lease term. As for buyers who can’t yet afford a house, the lease-to-own arrangement may be the best alternative in an effort to ultimately obtain title and a homestead in the fastest possible fashion.


As with any kind of financial contract involving residential real estate, both buyer and seller should be actively seeking competent professional advice from a team of professionals which may include an attorney, title agents (to ensure clean title), as well as real estate brokers, in order to find the best home suitable from a geographical and economical standpoint.
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            <pubDate>Wed, 31 Aug 2011 12:52:15 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/keys-to-rebuilding-credit-after-bankruptcy.html</guid>
            <link>http://www.markzproperties.com/blog/keys-to-rebuilding-credit-after-bankruptcy.html</link>
            <author>ltd@denhalaw.com (Lance T. Denha, Esq.)</author>
            <title>Keys To Rebuilding Credit After Bankruptcy</title>
            <description> <![CDATA[ In today's economic recession it's more difficult for the average consumer to manage his/her current obligations. Whether it be a mortgage, credit card, car loan, or any other type of debt, when someone finds it difficult to manage these payments they might find themselves with no other choice but to file for bankruptcy.

The typical client is concerned about credit after bankruptcy and how to establish credit again. Rebuilding credit after filing bankruptcy is not difficult, but does take time. It is obviously important to stay current on any new or existing obligations that you have. For example, taking out a new loan, even a small one, and making the monthly payments consistently and on time will cause credit scores to increase. One very important factor that is often looked at by lenders (in re-establishing credit) is a debtor's job status and how long he/she has been with their present employer. Unfortunately, people who are self-employed or change jobs often are penalized for this.


If anyone has declared bankruptcy and is seeking advice on how to reestablish credit after a bankruptcy discharge, I recommend the following two-part plan to increase the potential for credit repair success;


1. Establish new lines of credit with various credit card companies.


2. Pay bills immediately and in full.


Establishing New Lines of Credit


Be very weary of companies that claim to be able to wipe the bankruptcy slate clean from a debtor's record. These companies cannot erase the past bankruptcy from a credit record. The good news is, however, that credit bureaus will pay more attention to your recent activities than to things that happened in the past, therefore, if debtors immediately start using credit responsibly, they will be well on the way to a clean credit record and better scores with the credit bureaus. Obtaining new lines of credit after bankruptcy tells the credit bureaus that while debtors might have hit hard times, they are seeking out reestablishing a new and more productive relationship with their creditors. By doing such, debtors can easily raise their score well before the bankruptcy is removed from your credit report in ten years.


As part of a plan for credit repair, debtors should open new credit accounts and keep such accounts active by fully paying the entire balance each month. It is essential to keep the cards active, but keep the balance as low as possible on a monthly basis. However debtors should keep in mind because of the previous issues with their credit, debtors more than likely might not qualify for loans and credit cards with low interest rates which is why it is advisable to pay bills immediately and in full.


Pay Bills on Time and in Full


It is highly advisable to pay your debts immediately upon receipt of the monthly bill. I cannot stress this enough. This is the number-one rule of reestablishing credit after a bankruptcy. Debtors need to be informed that because of a recent discharge, the credit-scoring models consider such debtors as an extremely risky borrower, so any indication that a debtor is slipping into old patterns will not bode well for a debtor's credit score.


Another important task to perform is to obtain a copy of a credit report 6-12 months after the bankruptcy case is completed, and see if there is accurate reporting. Remember there are no magical shortcuts as many of these credit repair companies want to make you believe however the tips and resources may very well assist a distressed borrower or debtor to getting back on track in a swift manner.
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            <pubDate>Wed, 01 Jun 2011 13:50:08 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/mark-z-home-selling-team-real-estate-update-april-2011.html</guid>
            <link>http://www.markzproperties.com/blog/mark-z-home-selling-team-real-estate-update-april-2011.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Mark Z Home Selling Team Real Estate Update April 2011</title>
            <description> <![CDATA[ 
22% of homes listed for sale in Michigan are short sales


Analysis


Overall, short sales that closed in April were up 2.1% from 678 (of 2010) to 692 (of 2011).


Median sales price down in every county except Lapeer County (Up 14.9%) and Livingston County (Up 8.5%).


The average days on market (DOM) for the entire MLS decreased over the last year by 9 days, from 99 to 90 days.


Synopis of Inventory (April of 2011 vs. April 2010)


All MLS on-market inventory was at 32,910 units - 4,465 or 13.5% of these are foreclosures and 28,445 or 86.5% of these are NON-foreclosures. 


Inventory continues to decline as compared to 38,394 last year in April of 2010.


Out of the total on-market inventory, 7,246 or 22% of them have been identified as short sales. This compares to 8,859 for the same time last year. 


Notes:




The "ALL MLS" jurisdiction encompasses all listings processed by Realcomp, including those outside of Michigan. 


Metro-Detroit encompasses Oakland, Wayne, Livingston, &amp; Macomb data


Greater Wayne County represents Wayne County minus the City of Detroit.



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            <pubDate>Wed, 18 May 2011 09:27:37 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/mark-z-properties-real-estate-update-march-2011.html</guid>
            <link>http://www.markzproperties.com/blog/mark-z-properties-real-estate-update-march-2011.html</link>
            <author>clientcare@soldbymarkz.com (MARK Z. - CEO)</author>
            <title>Mark Z Properties | Real Estate Update March 2011</title>
            <description> <![CDATA[ 
Positive Signs ahead although prices are still declining


The amount of homes for sale or on market inventory and average days on market continue to decline compared to 2010 levels for the same period. In fact there are 6,000 fewer homes on market in March 2011 VS. March 2010. 


When you see the words MLS, this stands for Multiple Listing Service. Out of the 32,317 homes listed for sale, 27,686 of the houses were NOT foreclosures and 4,631 of the homes listed were bank foreclosures. Of the 27,686 homes 7,464 were short sales, where the homeowner is trying to sell the home for less than they owe. 


The average days on market is 97 days compared to last year in March when it was 102 days on average before a home would sell. 


Home Prices Decline 11.1% compared to same period last year


Lets get down to pricing...For the entire MLS, prices fell 11.1% compared to March 2010. Oakland County declined 7.4%, Macomb dropped double digits falling 16%, and Livingston County dropped just 6.6%. Wayne county excluding Detroit fell 7.7%. The remaining counties you can find below in the last chart at the bottom. 

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            <pubDate>Fri, 13 May 2011 13:21:47 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/why-buyers-avoid-short-sales.html</guid>
            <link>http://www.markzproperties.com/blog/why-buyers-avoid-short-sales.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Why Buyers Avoid Short Sales</title>
            <description> <![CDATA[ 
If you're just starting out searching for a home, it's hard not to notice that a lot of the best deals on the market are short sales. First you should know exactly what a short sale is. If a listing is categorized as a short sale or you notice in the description it says "subject to 3rd party approval or lender approval", this means the seller or owner is requesting that their lender allow them to sell the house for less than what they owe on their mortgage.


It all starts with a written offer


Lenders will not decide whether to approve or deny a short sale until a formal written offer has been presented to them. Once they get a written offer they will begin the review process. The review process can take anywhere from 45 days to six months. If you don't have patience or the ability to wait up to six months, then like most buyers, short sales should be excluded from your hot list. 


Don't Get Excited Because The Seller Signed &amp; Accepted Your Offer


The seller may have accepted your offer, but that doesn't matter because their lender makes the ultimate decision on whether to accept less than what is owed on the property. The seller accepting your offer is just a technicality in moving the process along to the next step.


After the lender has been presented with an offer, they will also want a complete financial package along with a hardship letter from the homeowner explaining why they are requesting a short sale. The lender will then send out an appraiser of their choice to the property to determine what todays market value is of the property, also known as a Broker Price Opinion(BPO). This will tell the lender what the house is worth in todays market, taking into consideration the condition of the home.


Patience is a virtue


At this point it is not uncommon to be 60 to 90 days out from when the intial offer was presented. Some lenders are quicker than others at responding. For example, Bank of America has an online system called "Equator."  This does speed up the process considerably, however keep in mind at the end of the day, a human must review the information to make an accurate assessment.


After all this has been complete, we have seen mortgage lien holders reply with a variety of answers, including:


1. Rejecting the offer saying it lower than they are willing to take (Yes even though you may have offered exactly what the listing price was, keep in mind the bank never approved that listing price, it was just a "Pie In The Sky" number that was just made up in order to attract an offer.)


2. The first mortgage could agree, but if the homeowner has a second mortgage the second mortgage holder could refuse to take the loss.


3. The lender could deny the entire short sale, saying the homeowner is not in hardship


4. The lender could approve the short sale, but the homeowner might not agree with the terms the lender has set forth. The lender could approve the short sale but demand the homeowner be held liable for the difference in what they owe and what the home is being sold for.


5. Best case scenario, the lender could approve your offer and waive the deficency judgement and agree never to pursue the loss.


As you can see, you could wait the entire process out and there is a very good chance your offer goes nowhere with no fault to your own. If you are in a position where you can take a chance and wait out the time it takes for the sellers lender to make a decision, short sales can be worth your while.


It's best to be the 2nd or 3rd buyer


A lot of times you will see in the description "Bank or Lender Approved $________ price" this is because most likely the sellers had a buyer willing to put in an offer, so the bank went through the entire process and for whatever reason that buyer backed out. Usually the first or second buyer gets impatient or frustrated and ends up walking away before a decision is made. If this happens typically the Realtor will keep the process flowing in order to get some type of response from the lender on what they will or won't take.


If I am showing a short sale to one of our buyers, I'll always call and ask if there have been any offers presented to the bank just to get an idea of where the bank is at with the process. 


Hope this helps.


 
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            <pubDate>Mon, 02 May 2011 21:56:52 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/metro-detroit-real-estate-update-february-2011.html</guid>
            <link>http://www.markzproperties.com/blog/metro-detroit-real-estate-update-february-2011.html</link>
            <author>clientcare@soldbymarkz.com (MARK Z. - CEO)</author>
            <title>Metro Detroit Real Estate Update February 2011</title>
            <description> <![CDATA[ 
Metro Detroit Home Prices Rise 1.6%, While Inventory Is Down


Waiting for the market to bottom out? You may have missed the boat. All the signs of an upward trending market are in place. Demand is up, while supply is down. Foreclosures are rare and when they do hit the market usually sell for over the asking price. Interest rates are still at an all time low. We are still having a hard time getting homes to appraise, but in time that should clear itself up. Below is specific data to each county comparing February of 2011 vs. February of 2010. 


Synopsis of Inventory (02/2011 vs. 02/2010)


*All MLS on -market inventory was at 32,695 units - 4,907 of these are foreclosures, 27,788 of these are NON-foreclosures.


Analysis:


*On-market inventory continues to decline (32,695 in February 2011 compared to 38,297 in February 2010).


*Out of these on-market properties, 7,593 of them have been identified as short sales


*Average days on market decreases include: ALL MLS decreased by four days to an average of 97 days on market.


Notes:


*The "ALL MLS" jurisdiction encompasses all listings processed by Realcomp, including those outside of Michigan.


*Metro Detroit encompasses Oakland, Wayne, Livingston, &amp; Macomb data


*Greater Wayne County, added to this report, represents Wayne County minus the City of Detroit.


 



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            <pubDate>Wed, 23 Mar 2011 09:58:10 -0400</pubDate>
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