Southeastern Michigan Real estate Podcast with Greg and Wendy Kime

The Cost Across Time [INFOGRAPHIC]Some Highlights:With interest rates around 3.66%, now is a great time to look back at where they’ve been over the past few decades. Comparatively, they’re pretty low!According to Freddie Mac, rates are projected to increase to 3.9% by this time next year.The impact your interest rate has on your monthly mortgage payment is significant. An increase of just $20 dollars in your monthly payment can add up to $240 per year and $7,200 over the life of your loan.Maybe it’s time to lock in now, while rates are still historically low.Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price Evaluation

Why You Shouldn’t “For Sale By Owner”Rising home prices coupled with the current inventory in today's market may cause some homeowners to consider selling their homes on their own (known in the industry as a For Sale By Owner). However, a FSBO might be hard to execute well for the vast majority of sellers.Here are the top 5 reasons not to FSBO:1. Online Strategy for Prospective PurchasersStudies have shown that 93% of buyers search online for a home. That’s a pretty staggering number! Most real estate agents have an Internet strategy to promote the sale of your home. Do you?2. Results Come from the InternetAccording to NAR, here’s where buyers found the homes they actually purchased:55% on the Internet28% from a Real Estate Agent10% Other6% from a Yard Sign1% from NewspapersThe days of selling your house by putting up a sign in your yard or placing an ad in the paper are long gone. Having a strong Internet strategy is crucial.3. There Are Too Many People to Negotiate WithHere’s a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO:The buyer, who wants the best deal possibleThe buyer’s agent, who solely represents the best interest of the buyerThe buyer’s attorney (in some parts of the country)The home inspection companies, which work for the buyer and will almost always find some problems with the houseThe appraiser, if there is a question of value4. FSBOing Has Become Increasingly DifficultThe paperwork involved in buying or selling a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.5. You Net More Money When Using an AgentMany homeowners believe they’ll save the real estate commission by selling on their own, but the seller and buyer can’t both save the commission.A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money (46 percent cite this among their top three reasons), but they don’t actually save anything, and eventually end up listing with an agent.The same report revealed that,“While 36% of sellers that (at first) attempted to sell their homes on their own, only 11 percent of sellers—in other words, less than a third…actually sold without an agent.”It appears working with a real estate professional is the best answer.Bottom LineBefore you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price Evaluation

Buyers Are Looking Now. Are You Ready to List Your Home?Inventory on the market today is low, especially among existing homes in the entry and middle-level tiers of the market. It is hovering well below the 6-month supply typically found in a more normal market, as shown in the graph below:With inventory being one of the biggest housing market challenges today, finding a starter home right now isn’t easy. According to the Q3 Housing Trends Report from the National Association of Homebuilders (NAHB), 68% of those searching for a home think their search will get harder or stay about the same over the next 12 months.The same study reveals,“In Qtr3’19, buyers actively engaged in the process of buying a home are more likely to have spent at least 3 months searching (58%) than a year earlier (55%).” This is certainly no surprise, given the current inventory status. So, what’s the good news? The NAHB continues to say,“If still unable to find a home in the next few months, the next step for most long-time searchers is to continue looking for the ‘right’ home in the same preferred location (52%). The next step for 35% is to expand their search area and for 16% is to accept a smaller/older home. Only 15% will give up looking.”What does this mean for homeowners? If you’re thinking of selling your home, buyer demand is high – and those looking in your neighborhood aren’t planning on giving up anytime soon. The majority of potential buyers who are still searching for their dream home are eager, willing, and ready to buy, so maybe it’s time to list your house and make your move.Bottom LineWith buyer demand as high as it is today, and inventory in the entry and middle-tier markets remaining low, it’s never been a better time to move up. Let’s get together to determine if now is your time to sell.Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price Evaluation

Homeownership Rate Remains on the RiseIn the third quarter of 2019, the U.S. homeownership rate rose again, signaling another strong indicator of the current housing market.The U.S. Census Bureau announced,“The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).”Today there is still a lack of inventory, particularly at the entry and middle-level segments of the market, but that is not stopping buyers from making every effort to pursue homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come.Bottom LineIf you’re thinking of buying a home, let’s get together to make your dream a reality.Call Kime Realty 734-446-5744Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price Evaluation

Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationWe just wanted to send out a quick, final reminder about our upcoming pie giveaway for our raving fans. If you haven’t RSVP’d yet, please give us a call at (734) 315-0555 and let us know whether you’d like a free apple or pumpkin pie this year. We’ll have everything ready for you to pick up on November 21 at Laurel Manor from 4 p.m. to 7 p.m. The address is 39000 Schoolcraft Road, Livonia, MI.“Let us know by November 14 if you want one. ”If you have any questions for us in the meantime, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon and we hope to see you on the 21st!

Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationThanksgiving is coming up soon. Do you know what that means? Our annual client appreciation pie party giveaway is coming up soon as well.On Tuesday, November 21st (two days before Thanksgiving), we’ll have pies ready to go for all of you who have supported and continue to support our business. This is just one way we want to say thanks and give back. “Join us on November 21st from 4 p.m. to 7 p.m. ”Come out to Laurel Manor (39000 Schookraft Rd) in Livonia from 4 p.m. to 7 p.m. on Tuesday, November 21st to get your pie. To reserve your pie, just give us a call at (734) 315-0555 by November 14th and we’ll get you on the list.If you have any questions in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon and I can’t wait to see you on November 21st!

Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationRenting might work better for some people but from a financial standpoint, it’s definitely better to own than to rent. According to the National Association of Realtors, a homeowner’s net worth is 45 times greater than a renter’s. Another reason to consider buying instead of renting is that home values are on the rise. According to CoreLogic, home prices are up 7.2% over the last year here in Michigan. Going forward, home prices are predicted to increase by 6.4% over the next year. The national average is 5.2%, so Michigan is outperforming the national numbers. “Home prices will only continue to go up, increasing homeowners’ net worth. ”According to ATTOM Data Solutions, homeowners who sold in the second quarter realized an average price gain of $51,000 since buying their home. That is the highest average price gain for home sellers since the second quarter of 2007, when it was $57,000. In other words, homeowners in the second quarter of 2017 got an average return of 26% on the previous purchase price of the home. That is the highest average return on investment for home sellers since the third quarter of 2007, when it was 27%. ATTOM’s report also shows that homeowners who sold in the second quarter had owned the home for an average of 8.05 years. So, as a homeowner, your net worth is higher and, when you move, you have the opportunity to get a good return on your investment. You can’t get that when you rent a home. If you have any other questions about owning versus renting or if you’re interested in making a move, just give me a call or send me an email. I would be happy to help you!

Low inventory and high demand have led to a 7.7% appreciation in home values in our region. Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationWhat’s happening with home prices right now in Southeastern Michigan? Let’s look at some national statistics and see how home prices are changing.  First, our national average for days on market is 28 days. I’ve never seen a number that low in my 24-year career, and we’re certainly seeing a trickle-down effect in our market—some of our listings are selling in less than a week or even a day or two. According to the latest report from Freddie Mac, the number of homes sales increased from 632,000 in June 2016 to 656,000 this past June. In our Midwestern region, the number of pending home sales decreased year over year by 3.4%. The main reason for this is the low inventory levels we have. Our low level of inventory has lead to an appreciation in home values.Low inventory leads to an appreciation in home values, and many listings are getting multiple offers because there are more buyers out looking for homes than there are homes available. Another factor driving appreciation is the fact that distressed properties have dwindled down to 4% of the market, which is great. Between 2008 and 2012, 35% to 40% of the market was either a short sale or foreclosure, but 4% is a much healthier number.  In the Midwest, all of these factors have led to a 7.7% appreciation in home values. If you have any questions about these figures and what they mean for our market or you’re interested in having an equity evaluation done on your home, feel free to give us a call or shoot us an email. We’d be happy to help.

Today I wanted to give you a bit of an update on how consumer confidence has grown within the real estate market. Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationToday we’re going to be talking about consumer confidence in terms of the real estate market.According to a recent Gallup poll, 34% of those polled believe that the best long-term investment choice is real estate—ahead of stocks and mutual funds at 26%.85% of Americans now believe that purchasing a home is a good financial decision. That’s a great number to see, as it’s the highest percentage since 2007, before the Great Recession. According to Sean Becketti, Freddie Mac's chief economist, “A decade after the Great Recession, the housing market is rebounding.”Lawrence Yun, the NAR Chief Economist, had this to say about the current real estate market: “Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.” “If you’re thinking about putting your home on the market, now is the time to do so. ”So, if you’re thinking about putting your home on the market, now is the time to do so. Give us a call if you would like to list your home, as the majority of our listings are selling in less than 30 days and in many cases, for higher than list price if we price them correctly.If you have any additional questions about this topic or you want to list your home for sale, give us a call. We’d be happy to help!

Our home search website is one of the best out there. Here are the advantages of using it.Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationIf you’re in the market to buy a home, our website offers a unique home search feature that we think you should be aware of.There’s a widget located on the right side of this page. It’s a quick portal to our home search website, located right underneath the market snapshot.All you need to do is type in the area you’re looking in, the number of bedrooms and bathrooms you want, add your price range, and click “search.”The widget will lead you directly to our live feed of listings, which are pulled directly from the MLS constantly. If there is a property that you want to take a better look at, simply click the address and you will find photos, specs, and other information about the home.“The widget will lead you directly to a live feed of listings. ”This is a really useful tool that many of our clients have used successfully in the past. If you’re searching for a home, we hope it helps you too.If you have any questions for us at all, don’t hesitate to reach out. I look forward to hearing from you soon.

The winners of our Zillow review contest have been announced. Find out who the lucky winners are below.Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationWe are excited to finally announce the winner of our Zillow review contest. First, we wanted to thank everyone who entered the contest by writing about your experiences working with our team online. Your support means the world to us, and we truly appreciate each and every one of you.However, there can be only one winner. Those winners are…Kim and Chris Callison! “Congratulations to Kim and Chris Callison! ”Congratulations to Kim and Chris! We enjoyed working with you on selling your home and buying a new one, and we are happy to present you with the grand prize.If you have any questions for us in the meantime or you or someone you know is looking to buy or sell a home, give us a call or send us an email. We look forward to hearing from you soon.

We value our clients as much as we value our business. Without them, the business wouldn’t exist.Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationWe would be nothing without our clients and all the other people who support us. It’s because of you that we have been able to grow a successful business. We take pride in our customer service, and we’re always looking for ways to give back to all of our clients.Our third annual client appreciation dinner was a huge success. The night was full of food, fun, and great conversation. We gave some awesome prizes and were touched by the kind words that many people had for us (which are in the video above).“There’s nothing more rewarding than giving back to you. ”There’s nothing more rewarding than being able to give back to those who have been so thoughtful and generous toward us. It’s only fair. We look forward to continuing to serve you at the highest level in the future. If you weren’t able to make the dinner, we would love to see you at our next event. To see what you missed out on, just watch the video above.In the meantime, if you have any questions for us or you or someone you know is thinking about buying or selling a home, give us a call or send us an email. We would love to hear from you.

By now everyone has heard that the market is strong and homes are selling quickly, but is that true for all price points?Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationWe know that the real estate market is doing well and homes are selling quickly. However, are homes selling quickly at every price point?In the chart above, put together by Trulia, starter homes, trade-up homes, and premium homes are shown and separated by the percentage of buyers searching for each type and the percentage of homes listed of each type. If you subtract the homes listed from buyers searching, we can see if there are enough homes available to meet the demand for each type.For starter homes, we have a -5.7, which means there is not enough inventory and prices will go up. For trade-up homes, we have a -5.3, which also means there is not enough inventory and prices will go up. Both starter and trade-up homes are below demand. However, for premium homes, we have a +11, which means the supply is greater than the demand. The upper end of our market is just not seeing the type of demand that the other two price points are. This doesn’t mean premium homes won't sell, it just means we have to price strategically and communicate on a weekly basis regarding foot traffic versus days on market.“The demand for lower priced to moderately priced homes is much greater than the demand for higher priced homes. ”The next graph in the video above, provided by CoreLogic, shows the price appreciation by price category for last year. It shows very similar data compared to the Trulia report. We see that the demand in the lower priced to moderately priced homes, or starter to trade-up homes, is much greater than the higher priced or premium homes.Sellers at the upper end of our market need to realize that their properties will sell, but they won’t move as quickly as the more affordable homes. For example, if your home is priced at $500,000 and there is more than six months of inventory in that price range, you won’t see value appreciate because your home would be in a balanced market.If you have any questions about this topic or you are looking to buy or sell a home, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

Foreclosures were a dime a dozen after the market crash in 2007. It’s a completely different story today.Buying in Southeast Michigan? Perform a full home searchSelling in Southeast Michigan? Get a free Home Price EvaluationA few years back, foreclosures were a popular option for homebuyers, simply because there were so many of them. Although this was the case back in 2007 and 2010, it’s not the same story today.Here, you can see a chart from CoreLogic that shows the total number of foreclosures between 2007 and 2016 broken down nationally and by state. The chart shows the number of foreclosures in thousands, so we actually saw 7.8 million total foreclosures during this time period.“We will stay on top of the data in case anything changes. ”With interest rates about to rise, should there be worry of foreclosures coming back in a big way? The answer is no. Although foreclosures skyrocketed between 2007 and 2010, they have been falling steadily since. There are more loan modifications being done, and the types of mortgages being secured by buyers today are much more stable and secure than the adjustable-prime rate mortgages we saw just before the market crash.We will stay on top of the data, as always, but we don’t think foreclosures will be quite so important in the market as they were a few years back. It shouldn’t be of much concern to you.According to the Chief Economist of CoreLogic, Dr. Frank Nothaft, we can’t ignore the connection between jobs and homeownership. A healthy economy is driven by jobs coupled with consumer confidence that usually leads to homeownership. In our opinion, the economy is much different than it was in 2008. It’s an economy that is conducive to more homeownership, not less.If you have any questions, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.