Last month our expectation was that we would see a residual effect from the Tax Credit because buyers have until June 30^th to close on their transactions.  Opposite of our expectation, May was a mixed bag.  May did not carry the surge that we had experienced from February until April.  We had an 8 percent drop in the number of houses sold compared to last year and a 9 percent drop from April this year.  The average selling price stayed the same as last year and increased by 3 percent over that in April.  The median price tumbled 18 percent from a year ago.  This indicates that lower priced homes, perhaps including foreclosures, sold and closed.  Now on the other hand, the early selling surge this year has kept year-to-date numbers up above last year.

Is May a fluke?  We don’t know and a one month decline in unit sales does not create a new trend.  If June is also down, then we have a potential for sliding backwards from the gains we made.  We are heading into our peak-selling season so we continue to be cautiously optimistic.  If sales go back to trending upward over the next couple of months, we would continue to be in a mode of recovery.

Let’s compare May this year to May 2009.  The number of houses sold and closed dropped 8 percent (205 vs. 222).  Year-to-date, we are still up 14 percent.  The total dollar volume for the month dipped 8 percent (32,915,077 vs. 35,959,418).  Year-to-date is up 22 percent.  The average selling price held almost even with last year at $160, 561 vs. 161,979. The higher sales in earlier months this year kept the year-to-date average selling price up 7 percent ($135,997 vs. $126,678).  The median selling price soared 39 percent in the April comparison, plummeted to minus 18 percent in May ($95,000 vs. 116,163).  However, the year-to-date median price is still up 20 percent over that in 2009.  The median price is the price at which 50% of the homes sold were above that price and 50% were below.

The bank-owned or foreclosed homes that spiked to 50 percent spiked in February have settled to 30 percent in May.   Foreclosed transactions declined to roughly one-third of sales during most of 2009.

We have as of the first of June 3,602 houses listed for sale.  This inventory level gives us a 16.4-month supply of homes for sale which is down from last year when we had a 19-month supply.  Even though we added to the inventory, we also had a surge of sales during February through April that lower the inventory from last year.

This data reflects home sales across Berrien, Cass and the westerly 2/3 of Van Buren counties and should not be used to determine the market value of any individual property.  If you want to know the market value of your property, please contact your local REALTOR^®.

Financing Rates At A Glance

When Selling Your House… You need to step back and become a stranger to the house.  When you decide to sell your home it becomes a house to everyone else.  There are no memories of good times and not everyone is going to be wild about your color selection.  Setting your selling price based on emotion or on the advice of friends is a set-up for disappointment.  You have to take the “I want this much” out of the equation and go with the black and white facts of the market. Putting you home on the market with obvious flaws like a leaky roof and thinking buyers will lower their offer price to cover the repairs is another huge mistake.  Buyers are tire kickers and they will move on to the competition.  The best way to competitively sell your home is to put the process in the hands of a Realtor who is knowledgeable about the market and can be objective.

Put your best face forward.  Ask your Realtor what are the top features of your house.  Are the best features the kitchen, master suite or home office?  The features that will impress the buyers the most should be first and well described in your home’s description.  When buyers come to see your house, make sure these features are well staged and appealing.  Buyers are looking for home offices and energy efficient appliances, windows and insulation, according a survey by AVID Ratings Company.  So if you have made energy efficient improvements put that in your description and have documentation available for viewing.  While you think the features of your home should be obvious, the extra promotion will help buyers see the real value of your home.

When Buying a Home… There is a list of things you need to do and selecting a Realtor will help you get all details to smooth the path to buying a home.   The list starts with being familiar with the market.  A Realtor can help you select affordable neighborhoods and help you be realistic about how much house you can afford.  A general rule of thumb is that you monthly mortgage payment should be about a quarter of your gross monthly income. But there are many factors that can impact what a lender will recommend.  So another step is to have your credit in good shape and know that your credit report is accurate. Next, you need to have saved money for a down payment and closing costs.   Down payments and closing costs can vary depending on the property value and the type of mortgage for which you apply.  Your Realtor can help you get an estimate of these costs from a mortgage lender.  Choosing a Realtor as your guide will keep you on target, save you time, and needless hassle.

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