Median Home Prices Decline - The Positive Perspective

"WORST IN NATION: AREA HOME SALE PRICES PLUMMET IN 4^TH QUARTER" (from the Lansing State Journal, 2/15/08)

This was on the front page of our local paper. Why do the news makers report the most outrageous stats? It's probably because "Shock and Awe" sells papers.

A more accurate line would be:

"Lansing, like almost every other city in the nation, sees declines in real estate values and reduction in numbers of sales in the 4th quarter. On the whole, Lansing is not down all that much when you really analyze what's really happening."

My headline is more accurate, I doubt if anyone at the Journal would print it though. Here's the actual report sorted by largest decline from the National Association of REALTORS®. Note the "p" next to the "2007 IV" column heading and you'll see that these are preliminary numbers not the final numbers.

So what is really happening:

1. Median just means the middle. So if 5 homes sold today, one for $300,000, another for $350,000 another for $109,000 another for $105,000 and the last one for $108,000, then the median would be 109,000. Because it's the one in the middle of the others.

2. Don't confuse median with average. The average sale price in the above set of numbers would be $194,400 (add the sale prices together and divide by 5).

a. The average home price in the Lansing area in December of 2007 (from Michigan Association of REALTORS®) was $141,022. Only a -5.79% drop for the year and a -2.18% drop from the 3rd quarter, 2007 average.

b. Lansing is as we have been saying for 15 years a very stable, boring market (think of the tortoise not the hare); just like you want real estate markets to be. We did not see home sale prices double in the last 5 years and we wont see them cut in half either.

3. Don't confuse appraised value with market value. Over the last 5 years or so, home owners were going to their mortgage lenders every two years or so and reducing their interest rates. Every time, their home value seemed to go up. Remember, the value has not increased until you sell it.

4. Year to date, I am still finding that the appraised value of my client's homes are at or around their 2002 - 2004 appraised values and more often than not, still at or around the SEV x 2.

So,

1. If you don't need to sell your home, don't. Rent it or keep it for a while, but if you don't need to sell it - Don't. One less house on the MLS will keep values higher.

2. There are some great deals out there as banks own more and more homes. Consider buying one, fixing it up and renting it to a family in need for a very fair rent. It will get a house off the market, improve a neighborhood, help a family and you will almost certainly do well financially.

3. Join the Cornerstone Home Loans Supply and Demand team. We have set a goal to help our clients and Realtors to sell 300 homes in the Lansing area. These are both REO and non-REO homes. We will track the sales and keep you updated. Read our previous post on why this is important for the Lansing area.

4. Subscribe to our Blog to stay current on the real estate market - take advantage of this. Get the facts before you start getting down or making misinformed decisions. If you want a more fair perspective - keep reading our blog.

The Cashflow Coach

• Mortgage Lender & Coach
• Providing a full range of mortgage services.
• Subscribe to my blog to stay updated on new articles.
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Copyright © 2008 the Cashflow Coach | All Rights Reserved

FHA vs. Conventional Loans

The FHA has been in the news a lot lately. More recently because of the pending conforming loan limit changes. Just a word on that, especially those of you in Michigan - don't expect much if any change in our conforming loan limits.

The calculation is based on 1.25% of the median home values. Which means for Michigan homeowners our calculation will be based on a average value of $141,000 x 1.25% = $176,250. This is well under the current conforming limit of $417,000 and on top of that, we are not considered a high cost living area. So if you have a jumbo loan (loan amount greater than $417,000) I would not plan on refinancing for the sake of refinancing.

Why will FHA loans be the most used in 2008 by lenders who are working in the interest of their home buyer clients?

1. Interest rates are consistently lower than conventional loans by 1/8% to 1/4%
2. FHA Mortgage Insurance Premium rates are lower than conventional PMI rates with similar down payments and are tax deductible like interest.
3. PMI is now deductible, if you itemize on your tax return (please consult a tax professional). This makes the effective cost of this loan in a lot of cases less than a comparable conventional loan.
4. The minimum down payment is 3%. In some cases, subject to appraisal and seller approval) the seller can even gift this amount. Seller are still able to pay all of buyers' closing costs usually around 3 or 4% (can pay up to 6%).
5. Even though conventional loans can approve borrowers for $0 down based on underwriting, Fannie Mae is tagging many neighborhoods as declining value areas and requiring 5 to 10% down payment minimums for many borrowers. Some lenders are no longer doing $0 down loans at all in Michigan. Within the last week a few of our lenders no longer offering conventional 0% down loans the minimum down payment on purchases will be 10%.
6. Credit scores are allowed to be less than conventional loans (often a 600 score is all that is needed to be approved).
7. Loan limits are around $200,000 with no maximum income requirements.
8. It is a great option for someone who has and ARM loan adjusting and has a stagnant appraised value. FHA is more easily able to combine first and second mortgages with fixed rates and reduce the total mortgage payment.
9. FHA underwriting still allows for deferred student loans to be ignored in debt to income ratios for approvals.
10. FHA loans are automated and documentation requirements are streamlined. Many agents who have in the past worked with higher sale priced homes, and have not dealt with FHA for a few years, you will be surprised at how much easier they are now.
11. Can finance doublewide manufactured homes with little money down.

I have been in the lending business for almost 15 years. In the last 7 years, because conventional loans made lending possible for many more home buyers without the upfront PMI, my clients closed very few FHA loans. Since January 1, 2008, however, I have originated more than 15 FHA loans and will close most of those this quarter. I am excited about how easy, inexpensive to the borrower and flexible they are.

If like me, you have not used them, reconsider them for your home sales. If you have been using them consistently over the last few years, keep using them. They are becoming a first option for competitive lenders in serving their clients.

A couple of additional considerations:

1. The home still needs to pass inspection - FHA will be more lenient on this in 2008 than before but it should still be considered. You will begin to see more FHA 203k (home improvement) loans offered. These loans do add expense and time to processing. Combining a construction loan program to a government loan program will be more cumbersome.
2. FHA still charges an UFMIP (up front mortgage insurance premium). This is 1.5% of the loan amount ($2,250 on a $150,000 loan) and is added to the loan amount at closing. Remember, this can be refunded in part within seven years if the loan is paid off during that time. First time homebuyers will usually get some of this money back when they sell their home.

The Cashflow Coach

• Mortgage Lender & Coach
• Providing a full range of mortgage services.
• Subscribe to my blog to stay updated on new articles.
• Now offering a full range of Investment Planning services

Copyright © 2008 the Cashflow Coach | All Rights Reserved

Foreclosure: What To Do If You are Facing It

There is a lot of misinformation and frustration in the foreclosure process. I hope the following information and links will help you better understand what is happening to you and how you can better communicate to your lender.

"Foreclosure is a legal process by which a bank, mortgage company or other creditor takes a homeowner's property in order to satisfy a debt. The foreclosure is the result of non-payment of the mortgage (including second mortgages and home equity loans); however, people also lose their homes due to unpaid property taxes. As a result of the foreclosure (at the end of the redemption period), the homeowner loses the rights he or she had to the property."

Communication with your Lender as early as possible will be helpful. The following information can be found at the Federal Trade Commission...

Contacting Your Loan Servicer

Before you have any conversation with your loan servicer, prepare. Record your income and expenses, and calculate the equity in your home. To calculate the equity, estimate the market value less the balance of your first and any second mortgage or home equity loan. Then, write down the answers to the following questions:

• What happened to make you miss your mortgage payment(s)? Do you have any documents to back up your explanation for falling behind? How have you tried to resolve the problem?
• Is your problem temporary, long-term, or permanent? What changes in your situation do you see in the short term, and in the long term? What other financial issues may be stopping you from getting back on track with your mortgage?
• What would you like to see happen? Do you want to keep the home? What type of payment arrangement would be feasible for you?

Throughout the foreclosure prevention process:

• Keep notes of all your communications with the servicer, including date and time of contact, the nature of the contact (face-to-face, by phone, email, fax or postal mail), the name of the representative, and the outcome.
• Follow up any oral requests you make with a letter to the servicer. Send your letter by certified mail, "return receipt requested," so you can document what the servicer received. Keep copies of your letter and any enclosures.
• Meet all deadlines the servicer gives you.
• Stay in your home during the process, since you may not qualify for certain types of assistance if you move out. Renting your home will change it from a primary residence to an investment property. Most likely, it will disqualify you for any additional "workout" assistance from the servicer. If you choose this route, be sure the rental income is enough to help you get and keep your loan current.

If you reside in Michigan, then here is a simple outline of what to expect. Thanks to Ethan Dozeman for this information from his post.

The 6 Stages of Foreclosure:

Stage 1: 30 to 90 Days delinquent on mortgage payments.

The Lender reports late payments to the Credit Bureaus (TransUnion, Equifax, & Experian.) The Lender notifies the borrower by mail and by phone to encourage them to catch up on past due payments.

Stage 2: 90 to 150 days delinquent on mortgage payments.

The Lender sends the file to foreclosure attorney. Foreclosure proceedings begin. Must bring mortgage completely current to stop foreclosure, no partial payments accepted.

Stage 3: 5 weeks of advertising a Sherriff's sale.

Lender must advertise property sale to pay off the mortgage balance for 5 weeks. The sale must be advertised in prominent newspapers.

Stage 4: Sheriff's Sale

Property sale is held at the county courthouse. The winning bidder is usually the lender who bids the amount of their debt. Lender becomes owner subject to the rights of the borrower to redeem the property.

Stage 5: 6 month to 12 month redemption period

The borrower has 6 or 12 months to redeem the property by paying the lender in full. 6 month redemption period if the property is less than 3 acres. 12 month redemption if the property is more than 3 acres. 1 month redemption for an abandoned property.

Stage 6: Redemption period expires and the Lender controls property

Lender (or highest bidder from Sherriff's sale) now owns the property free and clear of any junior lien. Lender can now consider offers on the property. Borrower is evicted from the dwelling.

Understanding the Short Sale

An alternative to foreclosure is the short sale. This is the process of negotiating with the Lender to accept a lower price on the property than what you owe.

Why would the Lender accept less than what you owe on the property? In some instances, they would accept less than what you owe if they believe that they will take a bigger loss by foreclosing (legal fees and lower bids at auction).

For more information about the Short Sale, go to E Z Home Ownership Realty, LLC

Be Wary Of Scams:

Scam artists follow the headlines, and know there are homeowners falling behind in their mortgage payments or at risk for foreclosure. Their pitches may sound like a way for you to get out from under, but their intentions are as far away from honorable as they can be. They mean to take your money. Among the predatory scams that have been reported are:

• The foreclosure prevention specialist: The "specialist" really is a phony counselor who charges outrageous fees in exchange for making a few phone calls or completing some paperwork that a homeowner could easily do for himself. None of the actions results in saving the home. This scam gives homeowners a false sense of hope, delays them from seeking qualified help, and exposes their personal financial information to a fraudster.
• The lease/buy back: Homeowners are deceived into signing over the deed to their home to a scam artist who tells them they will be able to remain in the house as a renter and eventually buy it back. Usually, the terms of this scheme are so demanding that the buy-back becomes impossible, the homeowner gets evicted, and the "rescuer" walks off with most or all of the equity.
• The bait-and-switch: Homeowners think they are signing documents to bring the mortgage current. Instead, they are signing over the deed to their home. Homeowners usually don't know they've been scammed until they get an eviction notice.

the Cashflow Coach

Lansing (Re) Development - Positive Changes

Have you been to downtown Lansing recently?

In the midst of growing foreclosures & higher unemployment around the state, Lansing is in the middle of major changes to it's skyline. Last night, Mayor Virg Benero outlined some new tax incentives to homeowners and investors for home improvements. (read the text of his State of the City here)

This proposal will offer a 50% break on the increased taxes resulting from qualified improvements to your primary residence or improvements to an old, abandoned house to an owner-occupied home. More details will follow when the plan is worked out by the mayor.

But, even more exciting is the number of new housing & retail developments that are going on downtown. Here is a brief list of the projects:

Stadium Lofts:

• In the heart of the new Stadium District, across the street from Oldsmobile Park
• Mixed commercial (1st floor) and residential
• Opening Spring of 2008
• Designated as a Neighborhood Enterprise Zone (NEZ)
• Received designation as one of 23 "Cool Cities" by the State of Michigan

Capitol Club Tower:

• Start Construction in Spring 2008
• 20 story high rise condominiums
• Will become the 2nd tallest building in downtown Lansing
• Downtown river frontage
• Private balconies
• Tax-Free Living (no property tax, no city income tax, not state income tax plus 1.5% interest rate reduction)
• Fine dining & health facilities

Kalamazoo Street Gateway Center:

• LEED Certified
• Energy Efficient
• Green Roof
• Retail & Residential
• 32 one and two bedroom apartments
• 10 Condos
• Near the River Trail
• Near the Stadium District

Ballpark North:

• Overlooks left field at the Lugnuts stadium
• 138,000 sq. ft. of commercial and residential space
• Covered and surface parking
• 6 stories of Condos and apartments

City Market Renovations:

• 3 acre site along the Grand River facing the new Accident Fund Building World headquarters
• 140,000 Sq. Ft. of buildings
• 2 four story residential buildings with a total of 90 to 120 mixed condos and apartments
• 10,000 sq. ft. riverfront restaurant

Motor Wheel Lofts:

• LEED Certified
• Still some available units
• 119 loft style condos
• 15 different floor plans ranging from 590 to 3,000 sq. ft.
• Underground parking
• Exercise Room
• More info

The Arbaugh:

• Corner of Washington & Kalamazoo
• Near Cooley Law School
• 48 residential apartment units
• 20,000 sq. ft. of commercial space
• High ceilings
• Underground parking
• Washer & Dryer in unit
• More Info

View Larger Map

Photos and sources of information from the City Pulse, the Gillespie group.

All of this development and new construction will bring some short term construction jobs but more importantly will attract more companies to look at downtown Lansing for growth and partnership. The Lansing Business Monthly has some really good articles on the developments, click here for more...

the Cashflow Coach

Copyright © 2008 the Cashflow Coach | All Rights Reserved

The Key to Rising Home Prices

Higher Demand or Lower Supply = Rising Prices

It's a basic economic principle that when supply increases, prices come down. And, when supply decreases, demand can rise and prices will rise with demand. (a good resource is Basic Economics, by Thomas Sowell)

As Banks take over more and more properties in Mid-Michigan they will seek to sell them as fast as they can at what ever price they can get. This increased supply with low demand has slowed our housing market currently. It will continue to slow down, until we see one of two things happen: Either demand rises (job creation - an inflow of residents) or supply decreases (homes are purchased quickly and taken off the market).

In 2008, one of our Goals at Cornerstone Home Loans is to assist our clients, Real Estate Agents and banks to take 300 REO homes off the market. Our upcoming seminar has 15 minutes devoted to how to get this done with great profit to those who participate. If you are interested in learning how you can be a part of this effort, join us on the 17th and then schedule time to meet with Evan Vanderwey- he will assist you in determining how you can increase your net worth in this opportunity market.

What is an REO home?

REO stands for "Real Estate Owned". For a bank to have Real Estate Owned means that they took over property, mostly due to the fact that these days they are foreclosing on more properties. Banks never want to hold real estate, they always unload it and because they are generally publicly traded companies, they would like to get most of that done in the calendar year of 2008 so they have a clean 2009. What does this mean for you? There will be more REO's on the market that Banks wand to unload in the next 12 to 18 months than ever before in Michigan.What kind of impact can 300 homes have in our area?When ever you decrease supply of anything, the prices rise. So any little bit helps. In Michigan, if we can reduce REO the volume by 10% buy helping people purchase them and take them off the market, then we will increase values.

The best part is that you don't have to do this without profit to you. You can do better by doing good. After all, we live in the best free market in the world. Be a part of it.

Cashflow Coach

Michigan: Guilt By Association

As a mortgage broker in the Lansing area for 14 years, I've seen the real estate industry go through various cycles along with the mortgage industry. Yes, I understand that the housing market across the country as a whole does not look very positive but we need to be careful to not generalize the negative aspects of this downturn to every state and county.

A prime example of this is here in the Great Lakes State of Michigan. Lately it seems like we're getting more press than Britney & Paris combined. An issue I'm dealing with on a regular basis is trying to convince the banks that I broker through that Mid-Michigan is not in the same boat as the rest of the state. We are not guilty by association.

Michigan's statewide unemployment rate as of Oct. 07 is 7.7% compared to the national average of 4.7%. But when you look at Michigan's unemployment numbers, you'll find that for the same time period, the Detroit Metro area was at 9.2%, Flint was at 8.1%, Grand Rapids was at 5.8% and the Lansing area was at 5.4%. (source: U.S. BLS) This has been a long term trend in this state.

What we have found to be true around the country is that there is a correlation between jobs and home values. Yes, we have experienced a downturn in home values in the Lansing area but not to the degree or severity that other parts of the state and country have. What do we attribute to that?

Business Expansion and Jobs

Lansing has benefitted from a diverse economy consisting of Government (state and local), Manufacturing (GM and its suppliers), Education (MSU, Cooley, LCC and more), Financial Services (Jackson National & Auto Owners) and Health Care (Sparrow and Ingham Hospitals). (Source: Lansing Chamber of Commerce)

More importantly, small businesses that work directly with or benefit indirectly from these industries continue to grow. Did you know that more than 58% of all the Lansing area businesses have less 5 employees?

An example of businesses that are expanding in the Lansing area is the Grand Traverse Pie Company. This company just recently opened a new location in East Lansing and plans on using this location as their franchise training center. For more information about this company click here.

Here's another article on business expansion in the Lansing suburb of Charlotte.

One of the advantages of not having double digit housing growth prior to this credit bubble bursting is that our declines are not as severe as other parts of the country. There are a lot of homes on the market which means there are a lot of great bargains if you're ready to take advantage of it.

If you would like to take advantage of these bargains but don't know how you'll swing it financially or don't know what you would qualify for. Contact me to schedule a Cashflow Optimization Analysis. You may be surprised by what you could do.

You have a choice in how you approach our current economy and housing situation. You can choose to live in fear with a scarcity mind set or you can choose to live with an abundance mentality.

Either way, you can be assured that you are not guilty by association. Lansing is a great place to grow your business.

What is a Builder Trade?

We seldom talk about Builders and Realtors offering home trades. In markets like this one however, the technique is making a comeback in order to move real estate. In a real estate market where properties are selling in under 60 days and at list price or higher, builder trades are not valuable to most people because Builders know that their buyers will be able to sell their home if it has not already sold.

But, in a real estate market that holds on to its inventory like my 18 month holds onto his eight ounces of slightly warmed vitamin D milk, we are all compelled to take another look. My belief though, is that Trades should not be looked at as temporary, necessary evils, rather, as a profit center and net worth builder that did not exist 24 months ago.

We all believe in the investor Mantra: “Buy Low and Sell High”. Why is it then; that so few of us are interested in finding ways to employ that right now? We will have to do things differently in this market that’s for sure – and action in this market has the potential to yield returns even greater than traditional markets where supply and demand are in a more normal balance.

Strike while the iron is hot! In a nutshell, a Builder trade is the offer of a builder to purchase the home of an interested buyer who’s home has not yet sold. Traditionally the Builder will price his home to sell at or near its asking price and the buyer’s home price is the negotiated number. The Builder and buyer work closely with the lender and essentially ask “What will it take to make this deal work – and are we willing to do it?” If the answer is “yes,” the deal can be structured to work well, cash flow wise.

Here is a simple scenario to explain how a Builder Trade happens. A homeowner wants to buy a builder’s new spec home but cannot unless his home sells. The homeowner has had his home listed with a listing Agent, for the last 8 months with no buyers. The builder’s listing agent is going to go crazy if another interested party comes through their completed spec home with a home sale contingency.

Because the Realtors are usually not paid on the acquisition of the buyer’s home by the Builder, creative deals are struck to fairly compensate the agents involved. The homeowner’s agent is losing the commission on this home that he had listed. But, he understands that without the trade, it was unlikely he would have gotten paid at all.

The homeowner could not buy the Builder’s home unless his sold first – and this had not happened for over 8 months. The Builder’s agent would get paid upon the purchase/trade of the spec home. Because the Builder now owns the homeowner’s previous home the two agents could co-list it and share the commission or some type of arrangement could be worked out. Now the areas where decisions must be made are:

 How much does the builder pay the home buyer for his previous home?

 How much does the customer pay for Builder’s new build?

 How does the Builder dispose of the buyer’s previous home?

These questions have answers that are easily arrived at by parties that want to find them. Remember “Cash is king”. Don’t use a dollar more of your own money than you need to. And don’t borrower if you can’t make the payments. Work with a Cash Flow Coach that understands how this works and can give you good advice about whether you are positioned well for this type of transaction.

In the end, the Builder loves trades! Why?

1. He maintains the sales price in his neighborhood.

2. By charging full price for his new home he keeps his neighbors and/or previous clients happy.

3. Because lesser valued homes keep their value better than higher priced homes he will likely not have to discount the home he acquires in trade as much as he would have his spec home.

4. Buyers of lower priced homes are usually more concerned with monthly payment and cash up front than with the home value and price of home so the sale is more likely.

5. Buyers of homes of lower value are more prevalent because these buyers don’t necessarily have homes to sell.

6. Even if he has to take a price reduction to sell the home he acquired on trade, a 20% reduction on a $140,000 home is less than the same 20% reduction on a $275,000 home. If a market is down 20%, then which home would you like to discount, your spec or a lower priced home?

7. The Builder prefers the lower priced home. If you have to reduce the value of a home, he says: “make it a home I DIDN’T build that is next to homes I DON’T have past clients in and in a neighborhood I DON’T own more lots in”.

8. The Builder also has other options, he might decide to sell the home he acquired using a land contract or lease option. He may even just hold and rent it.

9. When the values come back in Lansing in five years, what would be wrong with Build More owning six or eight homes of his choosing that he purchased in a very low market.

10. Renters and land contract buyers are more prevalent when home prices are down especially in this particular market where the property value decline is in part due to foreclosures and other credit damaging events:

a. More families are dealing with challenged credit, they still need homes and are having trouble getting loans these days.

b. People moving to Lansing, Michigan for 2 to 4 years are choosing to rent more often than in the past because they are afraid of getting stuck with a home they can’t sell in a few years.

Now is the time for your business plan to involve some calculated creative strategies that will allow you to profit even in what may be called the worst of real estate markets. All of the above statements are true and are all a win-win-win.

1. You win as you are making money in a down market while moving homes.

2. Your clients win as you have solved their problem.

3. The person or family that ends up using or buying the homes you acquire win because they need a place to live and have limited options.

Do what makes sense, do it well and profit from it while adding a ton of value to a real estate market that desperately needs it!

Uncertain Times Require Creative Measures

Michigan has been in the news a lot recently when it comes to depreciating real estate, record foreclosures, unemployment, declining new home starts, etc., etc. You can choose to listen to all of the pessimism and sink back into your scarcity mode or you can choose to look for solutions and have an attitude of abundance.

I spoke to our local home builders association (www.glhba.org) last night and talked about creative solutions that builders can employ to move homes without dropping the sales price and still make a profit. These strategies are not new, i.e. Trades, Lease Options, Land Contracts, etc, but putting numbers to it and quantifying the end results does make a difference. When you have real numbers to work with, you can make better decisions.

In times like these, especially in Michigan, everyone needs to be open to new ideas or at least open to new solutions. One company that is capitalizing on the increasing foreclosure market and helping the seller, the Realtors, and the bank is EZ Home Ownership Realty, LLC (www.ezhomeownershiprealtyllc.com) They have become experts in negotiating short sales with mortgage banks.

The short sale benefits: 1. the seller because it prevents a foreclosure, 2. the bank because they may end up getting more money prior to foreclosure than at the sheriff's sale, 3. Buyer's Agent, if they bring a qualified buyer to the seller, they will receive a commission, 4. Listing Agent, they will receive a commission for finding a buyer. 5. the neighborhood because the value of the home doesn't drop as drastically as it would in a foreclosure sale. There are many more tangible and intangible benefits of a short sale but needless to say, this is a strategy that is being used and becoming more accepted by mortgage banks' loss mitigation departments.

These solutions may require a little more work to close and in some cases we may not realize the benefit immediately but some business is better than no business. If you structure these strategies correctly, you'll be in a better position when the market turns and you'll have established yourself as a trustworthy professional and that will go a long way.

Mid-Michigan is Growing Despite the Rest of the State

We have been saying for months, that the mortgage market meltdown happening across the country right now is not Michigan's biggest problem. Our biggest problem is the loss of about 5,000 Michigan residents last year and thousands of jobs.

Now for the rest of the story....

1. The Accident Fund Company announced yesterday that they are planning on converting the old Board of Water & Light Ottawa Station into their national corporate headquarters. The plan is part of a redevelopment agreement reached with the city and state.

This move will create over 500 jobs and revitalize a much needed downtown business district. With the help of the Michigan Economic Development Corp. and the 21st Century Jobs fund this will be one of many more moves to continue to grow the Lansing area.

2. Michigan State University received a $50 million grant for alternative fuel research which is estimated to create 100 or more jobs between Wisconsin and Mid-Michigan.

3. General Motors is at full speed at their new Delta Township Plant with three shifts running full time and the demand for the crossover vehicles is rising.

4. GM suppliers like Android Industries, Bridgewater Interiors and Magna Powertrain combined want to hire more than 300 people, according to Capital Area Michigan Works, which is helping some suppliers find workers. (Source: Lansing State Journal)

5. Despite all of the doom & gloom in the media, did you know that the unemployment rate in the Lansing area is only 5.7% as of August. Compare that to Grand Rapid's rate of 5.9% and the rest of the state at 7.4% (source: BLS).

6. Home values in mid-Michigan are faring better than the rest of the state. From Aug. '06 to Aug. '07 the home values in Detroit declined 31.8%, Flint declined 10.1%, Lansing declined 3.6% and Grand Rapids declined 4.2% (source: Michigan Assoc. of Realtors) compared to a statewide average of -6.4% and a nationwide average of -4.2%.

What does all of this have to do with Real Estate? We believe that this is the best time to consider moving up. Yes, you may need to lower the price of your current home or look at selling later but let's quantify the loss AND the gain and see if it makes sense. A lot of our recent clients have gained a lot more than they've lost.

I have been helping my clients evaluate land contracts and lease to purchase options along with traditional methods to sell their home in order to take advantage of a discounted purchase. I can help you take all of the complexity of this type of situation and simplify it. Contact me to discuss your situation, it could be better than you think.