Friday, September 26, 2008

The Economy and Northern Michigan Real Estate

I've had the opportunity to attend a number of meetings recently with various real estate boards across Northern Michigan and, not surprisingly, not many people are overly excited about their fortunes in 2008. Those that I know well as hard working agents who understand how the modern real estate industry works are doing very well. There is not doubt that there is a bit of a pause right now as everyone waits to see how Wall Street will react to the legislation coming out of Washington in the coming days, but we are still very busy and in there is solid interest in the market. Those who have not overextended themselves and have access to money are taking advantage of one of the greatest buyer's markets we've seen in an awful lot of years.

There are also indicators that things are beginning to show signs of turning as well. Fewer homes are being built, which means there will be less inventory and many of the homes that have been on the market for a long while will be able to sell. Other sellers have decided to just hold on to their properties and be happy with what they have which will also help to reduce inventory. It's all supply and demand. We haven't lost too much on the demand side, but the supply side was making it difficult. As the supply drops, prices are likely to come back up. If I'm a seller right now that doesn't have to sell, it might make sense to wait until after the election and until we have a better gauge on the impact of the "rescue" legislation to decide whether to sell or not. If I'm a buyer, I see a combination of circumstances that makes it pretty tough for me not to take advantage and buy at the bottom!

Either way, the colors are rapidly starting to change and it's getting awfully pretty here in Northern Michigan. Take a drive along the lakeshore, a walk through the woods or paddle any number of spectacular rivers, but get out and enjoy the spectacular fall season. Let us know if we can help while you're in town.

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