The sale price of existing area homes jumped in 2014, according to a report from Realcomp issued last week.
In 2014 Brandon Township home sales led the way with a 21.9 percent increase over home prices in 2013 followed by a 16 percent jump in Groveland Township and a 9.4 percent hike in Atlas Township during last year. The Village of Ortonville is included in Brandon Township while Goodrich is included in Atlas Township. In addition, the number of homes sold in 2014 was 250 units, equal to 2013, and the days on the market was 73, one more than reported in 2013.
In comparison, Genesee County reported a 27.8 percent increase in existing home sales prices, while Oakland County realized a 5.9 percent drop for 2014.
‘The underlying reason for the price hike is simple’the overall market is much healthier and it’s stable,? said Jeff Dawley, owner and agent for Atlas Real Estate, 8491 State Road, Goodrich. ‘Consider that right now less than 10 percent of the homes on the market are distressed sales that includes foreclosures and short sales. That’s much lower than five years ago. It’s a more balanced market.?
Dawley remains bullish on the area housing market.
‘There’s just good news out there’the employment situation has improved, they’re building homes now, homeowners are starting to have more equity,? he added. ‘With interest rates at less than 4 percent, buyers and sellers are dealing with a more traditional bank right now.?
The supply and demand has stablized the market, suggests Dawley.
According to a ten year sales price trend report from Realcomp for Atlas, Brandon and Groveland townships, the average existing home sales price was at $225,000 in January 2005 and dipped to a low of about $90,000 in January 2011. In January 2015, the average sales price is now at about $220,000. The data over the ten years is based on 3,274 listings over that time period.
‘Keep in mind real estate is very localized,? he said. ‘What happens in southeast Michigan may not be what happens in other markets. We led into the recession here and now we seem to be leading out of it.?
The improving home market locally is reflected statewide.
According to Realty Trac, 10 percent of Michigan homeowners now owe at least 25 percent more on their mortgages than their homes are worth. Realty Trac also reported that in the first quarter of 2012, 56 percent of Michigan homeowners were seriously underwater. By the end of 2013, that percentage had fallen to 31 percent.