Posts

Metro Detroit Area Home Buyers Duke It Out

/in /by

Metro Detroit area home buyers compete in bidding wars for their dream homes. Homes are selling for over the asking price, and properties aren’t on the market for long. Brokers are advising clients to come in with their best offers first or risk losing out in the bidding process. Home tours are hopping with appointments every 15 minutes. In one weekend showing, some homes can receive as many as 22 purchase offers. The length of time a house sits on the market from listing to sold has dropped 34% from 2020. Showings per individual home have almost doubled. 

The CDC Takes Steps to Extend the Eviction Moratorium

/in /by

The CDC is poised to extend and possibly improve the moratorium on evictions. The eviction moratorium will expire in less than two weeks. The expiration could potentially put over 1 million people out of their homes.  With nearly 10 million Americans behind on their rent, Congress approved over $50 billion for rental assistance. However, the state and local channels have just now opened up the application process. The vast majority of people who need the assistance will not receive it in time should the eviction moratorium be allowed to expire in March.

To Buy or Not to Buy? That is the Question

/in /by

In 15 of the 50 largest metro areas across the country, buying is still a better option than renting. The relative price of buying a home hasn’t changed much, even with the historic growth in home prices over the last year. This is due to incredibly low interest rates. Realtor.com looked at the median listing price in each of the 50 largest metro areas, compared it to the monthly cost of renting in those same areas, and then compared those numbers to local incomes. Cities in the South and Midwest offer cheaper homes and a lower cost of living. Southeast Michigan is in the Top 10 of metro areas in which buying makes financial sense vs. renting.

Housing Counselors Prepare for Surge

/in /by

Calls from homeowners concerned about foreclosure have fallen while interest from homebuyers has surged. The trend points to an uneven economic recovery and the hidden impact of lost jobs and lower income. When federal foreclosure and eviction protection ends, housing counselors aren’t sure what to expect, as they are currently just guessing at the financial state of homeowners who may also be grappling with delinquent utilities, insurance, and car bills.

Weekly Brief – March 8

/in /by

This week the focus is on the prospects for the housing market in Michigan in the summer 2021 selling season.

But first, a favor. If you find this weekly briefing and newsletter valuable, it would mean the world to me if you would forward it to others you think would find it valuable. And if this email was forwarded to you, you can sign up to receive this weekly newsletter here. My promise to you is that this newsletter will not be “spam”. The newsletter will provide real estate news to those who want to receive it.

Now, about the 2021 selling season. We have signs from all over Michigan that this a historic seller’s market. There are reports from West Bloomfield, Metro Detroit in general, statewide, and West Michigan. The reports indicate that the seller’s market is due to a combination of low inventory, as some sellers are reluctant to sell (because they will then have to buy), and low mortgage interest rates.

To be sure, the phenomenon is not unique to Michigan. There is low inventory nationally. However, listings in Michigan are down 54 percent in January, compared to only 42 percent nationally.

What can’t be known yet is what will happen in 2022. Will the market be flooded by foreclosed homes? Will mortgage rates inch up, bringing prices down? There is no crystal ball, obviously. But for this year, it appears the seller’s market is set. Prices are going to increase, and inventory will remain constrained.

Lawyer – No Light at the End of the Pandemic Tunnel for Property Owners

/in , , , /by

The future of real estate continues to be in a flux. At a federal level, GSEs have continued to extend foreclosure and eviction moratoriums through June 30, 2021. The Center for Disease Control issued its own eviction moratorium in September 2020, and the Biden administration has extended it through March 31, 2021. In Michigan, the pandemic’s eviction moratoriums have expired, although the Michigan Supreme Court has recognized the CDC Order. No formal foreclosure moratoriums were ever instituted in Michigan, but social distancing requirements have halted the proceedings that are held in courthouses which have been closed to the public during the pandemic.

FHFA Extends Forbearance Plans

/in /by

The Federal Housing Finance Agency lengthened forbearance extensions for Fannie Mae and Freddie Mac borrowers, allowing coverage for up to 18 months. Eligibility is limited to borrowers who are on a Covid-19 forbearance plan as of February 28, 2021. Some borrowers may now be in forbearance through August 2022. This may impact the timing of the impact of foreclosures discussed in last week’s Weekly Brief.

Vacant Farmington Hills Industrial Space Slotted for Apartment Complex

/1 Comment/in /by

A vacant Farmington Hills industrial space is up for redevelopment. Located on Northwestern Highway, between 14 Mile and Middlebelt, the property will be the home of a 5-story apartment development that includes 200 units, varying in size of one, two, or three bedrooms. The complex would also include a bike path, clubhouse, and pool. Some planning commission members are concerned about the 5-story design and the dense traffic it could cause. They want it to not exceed four stories.

Weekly Brief – February 22, 2021

/1 Comment/in /by

As I discussed last week, the impact of mortgage forbearance and foreclosures on the residential market remains unknown. There are multiple variables that could impact the ultimate effect: government intervention, the outcome of the COVID-19 pandemic, and the state of the economy and job growth when foreclosures are once again allowed.

The Biden administration bought more time for job growth and to bring an end to the economic impact of the COVID-19 pandemic this week by extending the foreclosure moratorium, which was set to expire on March 31. The moratorium now lasts until (at least) June 30. This gives the economy another three (3) months to recover. From an optimistic viewpoint, this could blunt the impact of foreclosures, as more borrowers could get back on firm financial footing during this three-month period. A pessimist might argue that this only kicks the can down the road another three months.

Regardless of your viewpoint, this extension does delay the potential impact of foreclosures on the residential market. As has been noted in several articles, residential prices are growing at a brisk pace. A glut of foreclosures could slow down that price growth. However, given the timing to process a foreclosure, the redemption period, and the post-possession sale process, it does not appear that foreclosed properties will hit the market until late in Q3 2022, or early Q4 2022, given this new extension of the foreclosure moratorium.

The residential market in Michigan remains strongly favorable to sellers. Inventory is limited, and demand remains strong. Perhaps in 2022 the entry of foreclosed properties to the marketplace will shift the pendulum back in the buyer’s direction.

Wayne County Expands Back Tax Assistance Program

/in , /by

The Wayne County Treasurer’s Office has expanded its tax assistance program to now assist commercial property owners and landlords who have up to five occupied rental properties. The program gives eligible landlords and businesses time to pay off the back tax debt but doesn’t lower the 18% yearly interest rate. It allows them to pay 25% down and then pay off the rest of their balance through March of the next year.

One incentive to participate in the plan: The tax foreclosure process will move forward this year for all property classifications; the Wayne County Treasurer does not anticipate extending the foreclosure moratorium through this year, even for residential properties.