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FHA Back to Work Program Gives Families Hope

by The Jamey Kramer Group

FHA Back to Work Program Gives Families Hope

How long do you have to wait after filing bankruptcy to qualify for a home loan?

Are you back on your feet after the housing crisis and ready to purchase a house?

There is hope and a second chance if you lost your home in a foreclosure or short sale. Thanks to the new federal program called, Back to Work – Extenuating Circumstances, if you have recently gone through a financial hardship as defined below, you may qualify for a new home loan.

Previously, you would have to wait 3 or more years after suffering your hardship before you could qualify for a home mortgage loan. Now, it is only a 12 month wait. The program has been running since 2013 and will continue to be available until the end of September 2016. The goal of the program is to offer families a second chance at home ownership.

What Is a Financial Hardship?

According to the Back To Work Program’s website, here is a list of what is considered a financial hardship,

  • Bankruptcy- Chapter 7 or 13
  • Short Sale of Previous Home
  • Foreclosure
  • Modification of Previous Mortgage
  • The Sale of a Home Because of Pre-Foreclosure Status
  • Deed-in-lieu

How Do I Qualify for The FHA Back to Work Program?

If you have been through one of the financial hardships above and dream of owning your own home again, the FHA Back to Work Program might be perfect for you. Let’s take a look at how to qualify for the program. Key elements include:

  1. FHA loan requirements are met.
  2. Providing Documentation About Your Income: This may be the most important step. To qualify for this program, you will need to show that your income dropped by 20% for 6 or more months. This will show that your hardship was out of your control. You can prove this by offering W2s or a verification of employment.
  3. Proving Financial Recovery: The first step is demonstrating that you are no longer in financial crisis. According to MSN Real Estate, you can show that by your credit score being above 640.
  4. Counseling Session: The last piece is to attend a HUD-approved counseling session that provides education to home buyers.

HUD Counseling Agency for Novi, Michigan

If you live in Novi, Michigan and would like to learn more about this program, you can contact one of the following agencies:

OAKLAND LIVINGSTON HUMAN SERVICE AGENCY
196 Cesar E. Chavez Ave.
Pontiac, MI 48343-0598
Phone: (248) 209-2767

OAKLAND COUNTY HOUSING COUNSELING
1200 N Telegraph Rd/Bldg. 38E
Pontiac, MI 48341-0435
Phone: (248) 858-5402

For all other cities, please visit HUD.gov US Department of Housing and Urban Development.

Conclusion

The FHA Back to Work Program provides hope and a second chance at home ownership for those who experienced unfortunate circumstances in the housing crisis. The program will run through September 2016 and will be offered to those who meet certain requirements.

If you have any questions, or if we can help you find your next home, please give our office a call. We are here to help.

248-348-7200

 

4 Ways to Lose When Upgrading Your Home and How to Win

by The Jamey Kramer Group

City of Novi, Mi Offers Help to Homeowners

Are you looking to add value to your home while making it your own?

Would you like to get your home ready to sell?

It is spring and that means this is one of the best times of the year to put your house on the market. Before you do though, are there some upgrades you would like to make to you home?

Upgrading your home can be a great way to entice new buyers. Upgrading can also be very expense and cost you a lot of time. There are ways to win when upgrading, but there are also ways to lose.

Today, we would like to share about 4 ways that you can actually lose when making upgrades to your home.

  1. The Home Office
    When you work from home, a beautiful home office can be an oasis. However, often times when you add the office, you take away the extra bedroom. That extra bedroom might be just what a growing family is looking for.

    Real Simple put it this way,

    “People try to envision a room for little Jenny, but can’t make the leap past your piles of messy papers.”
  2. The Addition
    Whenever you change the foundation of your home, like adding an addition, you can bet it is going to cost a lot of money and a lot of time. The addition of your dreams might be worth it. However, if you are looking to resell in the near future, it is most likely not the best use of your money for the return on your investment.
  3. Bathroom Addition
    The bathroom is one of those areas in the home that we are under the belief will get a huge return on investment. In some cases that is true. However, when you add an additional bathroom and change the foundation of your home, it starts to get really expensive.

    What you may want to consider, according to MSN Real Estate, is adding an upscale bathroom to a main floor bedroom to turn it into a master bedroom. More and more buyers are looking for 1st floor masters bedrooms.
  4. Decorating with Bold Colors
    Decorating with bold paints is one thing, but when you are choosing which granite counter top to buy it is another. You can always repaint the walls when you decide to sell your home, but a potential buyer that sees bold color choices in items that are really expensive to replace, may have them moving on to the next home.

How to Win When Making Upgrades to Your Home

The truth is, your home is your home and you can add to or decorate it any way you want to. If you are looking to add some resale value, there are some upgrades that can really get you some bang for your buck.

Last month, we published an article called, 6 Easy Ways to Make Your Yard Sparkle & Open House Ready. This article provides ideas on how to help your home go that extra mile without costing you a great deal of money.

If you are wondering where to put your money when upgrading your home, please check out our article, Help With Remodeling and Renovating Your Home. This article outlines the top areas to remodel in your home to receive the highest return on investment. 

Summary

Upgrading your home can be worth it. If you have any questions about upgrading or renovating for resale value, please give our office a call. We are here to help.

248-348-7200

4 Questions You Should Ask Yourself Before Purchasing a Home

by The Jamey Kramer Group

4 Questions

What do you really need to know before you make one of the biggest purchases of your life?

Home ownership remains part of the American dream. Now that prices are still low, you may be rightfully thinking that it is time to purchase a home. Home values are starting to rise. Truthfully, right now is a great time to buy a home before prices and interest rates start to climb.

Before you head out looking though, we have put together some questions to ask yourself. These questions can help guide and direct you towards the perfect home for your family.

4 Questions You Should Ask Yourself Before Buying a Home

1.  What Can You Actually Afford?

It is easy to dream of mansions, but it is even better to know you can afford one. This is a great opportunity to take stock of all your financial information including your income, assets, debts, etc. Then you can see how much money you have to work with on a monthly basis. 

With the interest rates continuing to stay low, it might be helpful to know that the lower the interest rate, the more home you get. Would you like to know how much a 1% interest rate actually affects your money? You can find this out by visiting our article, Low Mortgage Interest Rate Stats You Want to Know.

2. Are There Any Unanticipated Charges?

Unanticipated fees and charges can be very frustrating especially if you have never purchased a house before. Here is a list of fees associated with purchasing a home to keep in the back of your mind:

  • Home Owner’s Insurance
  • Property Taxes
  • Closing Costs
  • Upcoming Anticipated Maintenance of the Home

These unanticipated fees can turn your just affordable mortgage payment into an unaffordable one if you are not prepared.

3. How Much Should You Put Down?

One of the biggest reasons why financial experts everywhere recommend putting a 20% down payment is because of PMI.

PMI stands for private mortgage insurance and is added onto mortgage payments when the buyer does not put 20% down. We are only talking about an extra $50 a month for every $100,000 you borrow. However, you can save that extra payment by putting 20% down on your home.

If 20% down is just not an option, you may consider a Federal Housing Administration Loan or FHA loan. FHA loans only require a 3.5% down payment, are really easy to apply for, and you don’t necessarily have to have great credit.

For more information on FHA Loans and how to qualify for them, please check out our article, FHA Loans and Qualifications for First-Time Home Buyers.

4. Where Do You Want to Settle Down?

Where is the right place for you and your family or potential family to settle down? Do you want to live in a small town, a big city or a city like Northville, Michigan which has both? Do you want to have community events happening every weekend, like Novi, Michigan? How important are good schools and low crime?

All of these questions can help you decide where to start looking for a house.

Summary

Now that you know what you can truly afford, what the unanticipated costs might be and where you want to start looking, you are almost there. With the help of an experienced real estate agent, it won’t be long until you are enjoying the perfect home for you and your family.

Do You Have Any Questions?

If you have any questions please contact my office. We would be honored to show you the available homes for sale in Northville and Novi, Michigan that are perfect for raising a family. Please call our office to schedule an appointment today.

248-348-7200

 

3 Key Home Repairs to Make After a Brutal Winter

by The Jamey Kramer Group

3 Key Home Repairs to Make After a Brutal Winter

Not sure where to start off with this year’s spring cleaning?

The temperatures are finally starting to warm up enough to convince us that maybe spring really is arriving this week. When spring arrives, so does spring cleaning. This year, that spring cleaning may look more like spring repairs after the kind of winter we have had.

Right now, Detroit is only 3 inches away from breaking the record of the most snow fall in one year. According to the National Weather Service, the record for the Detroit area was set back in 1880-1881 and currently stands at 93.6 inches.

If you have lived in Michigan for any amount of time, you know that just because it is April, it doesn’t mean that the snow is gone for good. In fact, in 1886 there were 25.7 inches of snow in April alone according to the Detroit Free Press. Thankfully, that doesn’t seem to be in our near future.

This winter, our homes have stood the test of wind, snow, ice, sleet, floods and more. With a high of 45 degrees expected today in Northville, Michigan, it may be time to step out and investigate the damage, if any, that this brutal winter may have caused.

Where to Look for Winter Damage

If you are not sure where to look for winter damage, scan through our list below for 3 key areas where your house may need a little tender loving care.

  1. Check the Foundation
    When checking the foundation of your home, look for cracks. Take care to closely examine the foundation for hairline cracks. According to Homesite Insurance, just because you see a crack, it doesn’t mean that your house is going to cave in. They suggest marking the crack with tape and then to check back on it in a few months.

     

    When the few months have passed, go back and check the crack again. If it hasn’t changed, Homesite Insurance recommends filling in the crack with epoxy-injection system. If the crack size has changed, you may want to call in a structural engineer.

    When inspecting your foundation, you should also look for evidence of termites. North Carolina State University recommends looking for mud tubes on foundation walls. These mud tubes are pencil-size (or larger) tubes that termites build from soil, wood particles and other materials.

    Lastly, make sure to clear away all debris and leaves away from the foundation so that you don’t invite rodents to nest by your home.

     
  2. Check the Roof
    Closely examine your roof for any cracked, missing or loose shingles. You may like to use binoculars from the ground, or if you do it safely, climb up to your roof. Pay close attention to the shingles around your chimney and sky lights. According the
    MSN Real Estate, if you think there might be a leak, head to the attic and check for moisture.

     
  3. Check the Gutters
    Clear out the gutters of your home on the first available dry day of spring. You can bet that leaves and other debris have gotten themselves caught up there. Use a sturdy ladder to examine and clean out the gutters and downspouts or hire someone to do it for you. According to HomeTips, LLC, clearing out the gutters and downspouts will help to protect your home’s “siding, windows, doors, and foundations from water damage and help prevent flooding in basements.”

Summary

No one can contest that this year’s winter weather has been a brutal in Southeast Michigan. Spring is right around the corner and it is time to start your home’s spring cleaning and if necessary, spring repairs.

Low Mortgage Interest Rate Stats You Want to Know

by The Jamey Kramer Group

Are you considering taking advantage of the current low mortgage interest rates?

Have you wondered if a small increase in interest rates is really that big of a deal?

It is an interesting time in the real estate business. We are on our way to a housing recovery. As the recovery has progressed, we are seeing interest rates on mortgages start to rise, even if only by small percentage points.

Many people have asked why a lower interest rate is so important, and why they should take advantage of the low rates now. Today, we wanted to take some time and answer those questions.

Mortgage Rates and a Little History

Freddie Mac has reported a drop in mortgage rates from 4.43% in January to 4.30% in February. Last year, rates were 3.53%. Five years ago, interest rates were 5.0%. Ten years ago, they were 5.45% and 15 years ago mortgage rates were at 7.04%.

Within ten years, interest rates on average have fallen over 1%. So, why is 1% such a big deal? How much money do you actually save at a 4.5% interest rate versus a 5.5%?

How Much 1% Will Save You on Your Mortgage

Last week, Zillow published an amazing infographic that illustrates just how much a 1% difference will make in your interest rate over the lifetime of a 30 year mortgage.

Zillow used an example of a $300,000 loan with a 20% down payment and compared a 4.5% interest rate to a 5.5%.

The Difference Each Month

In just one month, by purchasing the same home at a 4.5% interest rate versus 5.5%, you would save $147 dollars. To give you an example of what $147 dollars looks like, it is around 40 Starbucks Grande Caffe Lattes in one month.

The Difference in the First Year

In the first year of that loan alone, you would save $2,398. Instead of paying that money to the bank, you could take your family on a week-long vacation.

The Difference Over 15 Years

Over the next 15 years, you will save $34,211 by purchasing your home at the interest rate of 4.5% instead of 5.5%. For a good picture of what that kind of money looks like, Zillow reports that instead of that money going to the bank, you could be enjoying a brand new car and an entire year’s worth of gas.

The Difference Over 30 Years

Over the entire lifetime of your loan, you will save $52,794. That is a 20% down payment on a vacation home worth $264,000.

Summary

As the housing market returns, so will the higher interest rates. A lower interest rate keeps more money in your pocket. That is why we recommend taking advantage of the lower interest rates now. If you are interested in purchasing your first home or upgrading to a larger home, remember right now rates on average are 4.30%. If we can be of any help, please call our office at:

248-348-7200

6 Easy Ways to Make Your Yard Sparkle & Open House Ready

by The Jamey Kramer Group

6 Easy Ways to Make Your Yard Sparkle & Open House Ready

Would you like to move this spring?

Is your yard ready for potential buyers?

Curb appeal has never been more important. It is the first thing that potential buyers see and your home’s first impression. Research indicates that investing into the outside of your home gives you the most return on your investment.

In the article we published last year, Help With Remodeling and Renovating Your Home, we shared about how you can get the most return on your investment when you put effort into the curb appeal of your home.

Remodeling Magazine published a report last year that showed us the four areas in your home that get the highest return on investment are all on the outside. This may feel contrary to what we think. However, when we realize that first impressions are crucial - the curb appeal investment starts to make sense.

Today, we would like to share 6 ways to get your yard ready for your spring open house and maximize your home’s curb appeal. 

  1. Backyard Clean Up
    One of the biggest things that you can do to impress those potential buyers is simply cleaning up your yard. With snow on the ground, it might be hard to notice the tricycle or the old broken lawnmower today, but as soon as the snow melts those items will become eye sores.

     
  2. Fresh Coat of Paint
    Add a fresh coat of paint to your:
    • Front Door
    • Mailbox
    • Any Other Spot Where Paint is Peeling

    Painting these areas will add an inviting fresh appeal when potential home buyers first see your home.
     
  3. Spruce up Perennial Beds
    If you have a lot of landscaping, that can work in your favor as long as it is cleaned up. Overgrown perennial beds may deter potential home buyers. Head outside and start weeding. Spruce up your shrubs by pruning and shaping them. You may like to consider adding a new fresh layer of mulch to give it that added touch.

     
  4. Take Care of Your Lawn
    As soon as that snow is gone, start taking care of your lawn. Make sure to water your lawn regularly, and don’t forget to continue cutting the grass while you are trying to sell your home.

     
  5. Garden
    If you have a vegetable garden, make it your mission to keep it in tip-top shape while your home is on the market.

    If you want to garden while your home is on the market, a great solution for that is to build a raised garden bed. These are a great way to grow vegetables and it can move with you.

     
  6. Take a Step Back
    Take a step back and look at your home, what do you see? Try and imagine what a person who has never seen your home will see. Take notice of things like your mailbox or the address numbers on your house and make sure they are in great shape.

Summary

When it comes to great curb appeal, a little goes a long way. Once the snow clears, take a Saturday and follow these tips and soon your home will be ready for an open house.

What Do You Think?

If you have looked at potential homes to purchase, what was the first thing you noticed?

If you have any questions or when you are ready to put your house on the market, we would be honored to help. Please call our office at:

248-348-7200

How the New Mortgage Rules May Affect New Graduates

by The Jamey Kramer Group

How the New Mortgage Rules May Affect New Graduates

Have you recently graduated from college?

Are you excited about purchasing your first home?

Buying your first home is an amazing moment in life. It is a moment that you will remember forever. However, new mortgage rules may mean that recent college graduates will have a harder time getting approved for a mortgage.

New graduates are facing a lot when they step off campus and onto the streets. While the economy is coming back, there is still too much unemployment. In addition, the rising cost of college tuition means that many new graduates will be saddled with sizable student loans.

Preventing Another Housing Crisis

In a comprehensive effort to prevent another housing crisis, the government has created a set of standards, the Qualified Mortgage Standards Under the Truth in Lending Act. These new standards must be met if the lenders want the mortgages to be protected from lawsuits in the event borrowers are unable to pay. They were created to ensure that lenders only issue loans to those who can afford to repay them.

Banks all across the United States are already starting to implement these new mortgage rules. So, what is changing and why would it affect recent college grads?

In our article, What Determines If You Qualify for a Mortgage, we reported about 8 factors that will determine if you qualify for a mortgage. There are a few factors that directly impact those who have recently graduated from college.

4 Factors That Directly Impact Recent College Graduates

  1. Employment Status
    The first factor that will directly affect new college graduates when applying for a home mortgage is their employment status. Even if a new grad gets hired right away, banks are looking to lend money to those who have been employed for at least 2 years.
     
  2. Income
    Another piece that banks will want to see is 2 years of income. They will ask recent graduates to show 2 years worth of W2s.
     
  3. Student Loans
    Many college students make it to graduation because of student loans. These days, student loans can be used to cover the cost of books, cars, rent and tuition. While in school, student loans can feel like a life saver, but when you are out of school these types of loans can make banks feel pretty nervous about lending money especially if they have amounted to a sizable sum of money.
     
  4. Debt-to-Income Ratio
    Lenders will be looking at the debt-to-income ratio. The magic number here is 43%. Your monthly debt (student loans, car payments, credit cards, etc.) cannot exceed 43% of your income.

What Should a College Graduate Do?

If you have recently graduated and are looking to purchase your first home, this news may be frustrating. There are few things you can do.

  • If you are still in school, get a part time job with a company you will want to work for after you graduate. When you graduate, you will be able to report that you have been working there for a year or two. You may also minimize unemployment time after graduation if that company hires you full time after graduation.
  • Pay off your credit cards and other loans as soon as possible. Get your debt lower so you can purchase more house for your money.

Summary

As a recent college graduate, there are factors that will come into play when you apply for a home mortgage. There are practical tips that you can implement to help increase your chances of being approved for a loan when you are ready to purchase your first home.

When you are ready, you may like to consider looking at the family-friendly cities of Northville and Novi, Michigan. We would be honored to help you find that perfect home. Please call our office at:

248-348-7200

What Determines if You Qualify for a Mortgage?

by The Jamey Kramer Group

What Determines if You Qualify for a Mortgage?

Would you like to purchase a home this year?

Not sure what it takes these days to qualify for a mortgage?

The housing market is coming back especially in the Metro Detroit area. It is now a prime time to purchase a home in Southwest Michigan. If you are interested in purchasing a home in the near future, you will want to be aware of the stricter rules that are being put in place for mortgage lenders.

Qualified Mortgages

The new Qualified Mortgages rules are the federal government’s response to preventing another housing crisis. According to Forbes.com

“The Qualified Mortgage rules are intended to ensure that lenders issue loans only to those who can afford to repay them.”

Lenders are now legally responsible for loans they issue according to the Qualified Mortgage Standards Under the Truth in Lending Act. However, if the mortgage meets the Qualified Mortgage requirements, the mortgage loan will be protected from lawsuits if the borrower is unable to repay.

8 Factors That Determine Qualified Mortgages

It is easy to draw the conclusion that as mortgage rules become stricter, it is likely it might get harder and harder to qualify for a mortgage loan. While some banks are still issuing non-qualified mortgages, you can bet those loans will be under strict rules as well since they are not protected. With that in mind, today we wanted to share 8 factors that go into determining a Qualified Mortgage.

  1. Employment Status
    It should come as no surprise that the banks will want you to be employed if they are going to issue you a mortgage loan. The mortgage lenders will most likely want to see at least 2 years of employment.

     
  2. Income
    Make sure to have on hand the past 2 years of W2s or income tax returns. If you have any assets, make sure to provide that information as well.

     
  3. Monthly Mortgage Loan Payment
    The banks are going to want to see how much per month your mortgage will cost you.

     
  4. Other Property Loans
    Some equity loans will fall under this category and the lenders will want to know about them.

     
  5. Other Monthly Housing Costs
    Costs like HOA dues, property taxes and even mortgage insurance will also be included when determining a Qualified Mortgage.

     
  6. Other Financial Commitments
    Banks will be taking into account credit cards, student loans, alimony and even child support.

     
  7. Debt-to-Income Ratio
    The debt-to-income ratio will be looked at on a monthly basis and it means that your monthly debt cannot be more than 43% of your monthly income.

     
  8. Your Credit History Your credit score will help to determine whether or not you as the borrower are eligible for a Qualified Mortgage.

You may learn more about the Qualified Mortgage features by checking out our article, What A Qualified Mortgage Is and How New Mortgage Rules Will Affect You

Summary

The new requirements of the Qualified Mortgage Standards Under the Truth in Lending Act have been put in place by the federal government to ensure that another housing crisis does not take place in the United States. Lenders will be held accountable and will be collecting documents and analyzing numbers.

If you or someone you know is interested in purchasing a new house, please call our office. We will be happy to help untangle the web of mortgage terms and requirements to help get you the house of your dreams.

248-348-7200

11 Real Estate Terms Made Easy

by The Jamey Kramer Group

Real Estate Terms Made Easy

Do you feel like your real estate agent is speaking another language?

Are you wondering what Escrow or PMI is?

Buying a home should be an enjoyable experience and one of the most exciting times of your life. Sometimes though, searching for a home isn’t everything you dreamed it would be. You may even feel like your real estate agent is speaking another language.

At the Jamey Kramer Group, we want to make sure that you have the experience you have always dreamed about when purchasing your home. Whether you are buying your first home or you are looking to move into something that will fit your family more comfortably, we are here to help.

We would like to provide you with common real estate terms with definitions that are easy to understand to help take the mystery out of real estate terminology. Please take a look at the list below and call our office if you have any questions.

Common Real Estate Terms

  1. Escrow
    Escrow is when a third-party holds cash, property or property title until all the terms of the property agreement are met. Once the terms are met, the assets are distributed. An example of the escrow process is when a mortgage lender collects funds for real estate taxes and/or homeowners insurance on the behalf of the borrower on a monthly basis. The funds are held in an escrow account and the lender pays the payments when they are due on the behalf of the borrower.
     
  2. ARM or Adjustable Rate Mortgage
    An ARM or Adjustable Rate Mortgage is a type of mortgage that may have the interest rate adjusted. They usually start off low then adjust periodically accordingly to the market conditions. The adjustments could take place monthly, quarterly, annually or even at a longer time interval.
     
  3. PMI or Private Mortgage Insurance
    PMI or private mortgage insurance protects the lender in case the buyer’s loan goes into default. PMI is generally required on high-risk loans. For example, if someone is putting less than 20% as a down payment, PMI may be required. The PMI can be lifted once your loan-to-value ratio hits a certain rate.
     
  4. LTV or Loan to Value
    According to RealEstateABC.com, the higher the loan-to-value ratio, the more likely lenders will consider it as a high risk loan. The LTV is the percentage of the appraised value of the home, divided by the mortgage (or money owed).
     
  5. Appraisal
    A real estate appraisal is the process of determining the value of a house or property. An appraiser will evaluate the condition of the property, the location, comparable sales of homes nearby and upgrades to help determine the market value of the house.
     
  6. Closing
    The closing in real estate is the final step when a house is transferred from the seller to the buyer.
     
  7. Closing Costs
    Closing costs are fees required in the final settlement of a real estate transaction that are not included in the price of the property. Examples of fees that may be included in closing costs include loan origination fees, escrow deposit fees (several months of property taxes and PMI if applicable), credit check fees and appraisal fees.
     
  8. Comps
    Comps or comparables are homes that are comparable to the property in question. They are used to help determine the value of the property.
     
  9. Down Payment
    The payment that the buyer pays in cash for real estate sale is considered a down payment. Down payments generally range from 3% - 20%.
     
  10. FHA Loan or Federal Housing Administration
    The FHA loan of Federal Housing Administration loan is a loan that is insured by the federal government. This type of loan allows lenders to have a lower risk if the borrower defaults on their payment. You can learn more about if a FHA loan is right for you in our article, FHA Loans and Qualifications for First Time Home Buyers.
     
  11. Fixed-Rate Mortgage
    A fixed-rate mortgage is a mortgage where the interest rate does not change for the term of the mortgage loan.

Your Turn   

Is there a real estate term that you would like to learn more about that is not covered on this list? We would be happy to help. Please give our office a call.

 248-348-7200

Property Values Rise in Metro Detroit

by The Jamey Kramer Group

Property Values Rise in Metro Detroit Has your home’s value risen?

Are you ready to move out of your current home and into your dream home?

There is more good news for Metro Detroit residents. Property values are on the rise! This means that if you are living in the Detroit metropolitan area, your home is now worth more than it was a year, 2 years, maybe even 5 years ago. The last time we have seen home prices like this was in the mid-1990s.

Home values are up 52% since the end of 2009 according to an article published by the Detroit News. Would you like to hear even more good news? Kurt Rankin, a bank economist from PNC, is forecasting more growth. He stated, “While it’s slowing, growth will remain in positive territory.”

Metro Detroit Cites Seeing Growth

Here are a few specific examples of Metro Detroit cities that are seeing a growth in property values in the last year:

  • Northville and Northville Township: In the city, there has been a 12% rise and in the township, an 8.7% rise in property values.
  • Novi and Novi Township: The city saw an 8.62% rise and the township saw an 8.84% rise in property values.

Shortage of Available Properties for Sale

With the value of homes rising, another interesting thing has happened. We are noticing a shortage in available properties for sale. It is a simple case of supply and demand. In this case, the supply of available houses on the market for sale is low, and it is driving home values up.

While many Michiganders are still unsure about the latest news reporting that home values are up, those who are putting their homes on the market are seeing a quick turnaround.

Why the Comeback?

In our article, 4 Reasons Why 2013 Had the Highest Home Sales Since 2006, we shared that all across America people are selling and purchasing homes. We talked about the 5 million previously owned homes that were sold last year alone.

One of the biggest reasons why homes are selling is that home prices have increased and homeowners that want to sell are no longer underwater in their mortgages. Other reasons include lower mortgage rates, less foreclosures and more employers hiring.

Is Your Once Perfect Home No Longer Suitable?

One of the most frustrating parts of the housing crisis is when people started to feel stuck in a house that no longer fit their family’s needs. They may have bought that house thinking it would be perfect, but then life happened and their once perfect home was no longer suitable.

If you live in the Metro Detroit area and have been dreaming about selling your current home and purchasing your dream home, please give our office a call. We would love to help you sell your home and find that perfect home that you have been dreaming of.

248-348-7200

 

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