Livonia home sales are increasing and listed homes are spending less time on the market.
But the median sales price has declined for the first two months of this year versus last year.
For real estate agents, the statistics show that the housing market is turning around.
“There’s an increased demand, the days that listed homes are on the market are falling, which means the homes are selling faster, and the numbers of sales are increasing,” said Gary Reggish, broker and owner of Remerica United Realty in Livonia.
Realcomp of Farmington released figures on Monday showing that metro Detroit’s overall home sales have increased 15 percent in a six-county area, including Wayne, Oakland and Macomb counties.
Realcomp reported 104 sales in February in Livonia, up from last February’s 68. This year’s total is 193, up from 133 a year ago.
While that statistic shows the inventory of listed homes is moving, other statistics reveal that values have not turned around yet.
Home values showed a decline. The median sales price in Livonia was $81,500 for February, down from last year’s $93,500. The median price for overall 2012 sales was $88,000, falling from $90,000 in 2011.
Homes are not sitting on the market as long as they were in 2011. A year ago, a home sat on the market for an average of 100 days for January and February; in 2012 that number for the first two months is 93.
Bidding wars
Lisa Hall, owner of Remax Dream Properties in Northville and Livonia, said agents are experiencing “extremely low inventories” for homes, except for foreclosures and short sales,
Both Reggish and Hall said bidding wars are starting to return as buyers seek homes, which also drives up the sales price, and will increase the value of homes listed for future sellers. They both indicated that they need homes to sell.
“If the home is well-taken care of, we are seeing several offers for it,” Hall said. “If a home four houses away from you sells for $65,000, it isn’t out of the question that you can get $85,000 for your house.”
Reggish said the National Association of Realtors is putting pressure on the banks to lift the appraisals and get them to an accurate market value. Reggish serves on its board of directors, and on the state and local issues committee and the federal housing committee.
“It’s fear,” Reggish said of the banks. “They fear that the market hasn’t stabilized yet.”
Hall said the housing bubble burst, and that it will take at least 10 years to return the values back to where they once were. “You can stay, if you still have equity in the home or if you want to be moving up into a larger home, now is a good time to be moving up,” Hall said. Larger homes in foreclosure or short sales are good buys right now, Hall said.
And while homes have fallen drastically in value, the other side of that coin means that downsizing also brings a lower price beyond what existed a few years ago. Hall said she has listed a colonial in Livonia for a couple who want to downsize to a condo. “Those condos have fallen $50,000 to $75,000 in price,” Hall said.
Reggish believes Livonia is turning the corner. “The number of units is up so that shows the demand, and the homes are getting eaten up quickly,” Reggish said.
The average sales price in Livonia is about $115,000, give or take a few hundred dollars, Reggisn said. “That number speaks as a number that is stabilizing,” Reggish said.
Reggish believes homeowners are on the cusp of a market upswing and the market is ripe to buy. Home values are at their lowest levels, interest rates are at 4 percent for a 30-year mortgage and 3.75 percent for a 15-year fixed rate, Reggish said.
Reggish said his office showed a home in Livonia last weekend and 22 people showed up. One home in Northville listed for $575,000 received six offers and sold for $610,000.
Reggish said he is averaging 2 1/2 offers per house. “The buyers are out there; they just need product to buy,” Reggish said.
Livonia not as hard hit
Hall, who lists properties in Northville, Novi and Farmington Hills as well as Livonia and other western Wayne County communities, said she averages about three prospective buyers for each house she lists.
“Livonia is one of the best places to buy,” Hall said. “It wasn’t hit as hard as other communities.”
At his recent State of the City, Mayor Jack Kirksey said it could take 11 to 15 years to return to 2007 property tax levels unless changes in state legislation occur, which is unlikely.
Taxable values are limited under Proposal A in Michigan to the consumer price index or 5 percent, whichever is less, unless the house is sold. Kirksey expects local governments will be limited to about 3 percent a year.
Kirksey said he was encouraged by some of the statistics about the housing market and that other factors tie into the decline in the housing value, such as foreclosures. Kirksey said he’s spoken to real estate agents and is aware that homes are selling quicker.
“There’s far fewer on the streets than a year ago,” Kirksey said.
Kirksey is optimistic, but knows that these sales figures are nothing more than a snapshot, and that overall sales at the year’s end will need to be examined.
“It’s virtually impossible for me to say whether we’ve bottomed out or not,” Kirksey said. “At the very least, it appears we’ve started to climb out of it.
“I don’t know if that will continue, but I don’t think we will fall any further. I am optimistic about it.”
kabramcz@hometownlife.com (313) 222-2591 | Twitter: @KenAbramcz