Real Estate Market Watch

Encouraging Signs?

Over the past eight quarters the Port Huron Residential Real Estate Market, comprised of approximately 22,500 households in the Cities of Port Huron and Marysville, along with Port Huron, Fort Gratiot, Burtchville, Kimball and Clyde Townships, has shown continual decline. The news for the first two months of 2007, may signal that the market has "bottomed out", as demand increased an overall 9% as compared to the same time in 2006. Those homes selling for more than $200,000 showed the biggest improvement (25%), when compared to the previous year.

The supply of homes continues to decline since October, 2006. Still it is a buyers market with a current 11 month supply of housing at normal demand levels.

The National Association of Realtors defines a "Buyers Market" as a market where the supply of homes currently on the market exceeds the historical demand for homes by more than six months. For example, if a market normally has 100 homes a month selling and there is more than 600 homes on the market, it would meet this definition.

By this definition the Port Huron Market for homes has been in a severe Buyers Market for more than two years, with an overall supply climbing from 6.3 months to twelve months, before receding to the current 11 months supply.

If selling, it is helpful to know how many buyers will likely "surface" during your time on the market, and how many homes you will be competing with for those buyers. Your market strategy should take into account a price range of $10,000 to $25,000, with homes of similar location, age, size, and amenities. Homes are still selling and the sellers who "know the market" have an advantage in attracting a buyer to their home.

It's way too soon to declare a "turnaround in the market", with the effects of automaker's buyouts not yet felt by the market, and recent local plant closings being a concern, but good news has been hard to come by and when we do witness encouraging signs we should take note.