Over the past few weeks, we have been taking the time to point out the strong points about our area and our real estate market, but we also want to point out and acknowledge that there has been a slow down of sorts.
While reading an article by Alison Ketcham, Back on Track, Birmingham Real Estate Market Returning To Healthy Normal Course (I was unable to find an onlive copy for you to see) I came to find that a lot of our theories are shared by many real estate professionals in the area.
In order to understand what happened in the area over the past year, you need to know what preceeded it. It is a natural process of cause and effect.
A healthy home appreciation in our area can range from about 3%-5% each year with some flucuation depending on area and zoning. In 2003 and 2004 we began to see homes appreciate in some areas as much as 10%-20% a year! While home owvers and investors loved it, and who can blame them, it really was not healthy for the general market. This type of appreciation just can't be sustained for long periods of time and homes remain affordable. Also, with sales increasing in number a lot of people were getting loans who really wern't in a position to buy them.
When you combine those two factors, the bump came in the road and knocked us, as some would say off track, and as other would say, back on track.
So, today, we know that good borrowers can still get a loan and even some 100% financing options are still available. Homes are still selling, on average between 90 and 120 days, our inventory is high, sellers are anxious, and rates have been dropping.
Now is still a good time to be in the market.
Hi from the other Birmingham. Birmingham MI...
Posted by: Maureen Francis | February 16, 2008 at 07:30 AM
Maureen, thanks for stopping by. Maybe I will make a click and travel up there for a minute!
Posted by: Stephen Wolfe | February 21, 2008 at 08:56 AM