State of the Real Estate Market - 2007 Part 2

Part 2 of 4

Hello everyone,

Here are The Seven Significant Factors affecting the Grand Traverse area real estate market, in a nutshell:

´ Money is cheap
´ TC is gorgeous and people want to live here
´ There are more people every day
´ LOTS of homes are for sale (nationwide)
´ ItÝs a buyers market
´ RealtorsÝ value to sellers is rising
´ Realtors are FREE to buyers

From the top then: Interest rates are still near lifetime lows. Yes, the secondary mortgage market is in poor health, but if your credit is good, and you are not trying to borrow more than $420,000 (which requires a ýjumbo loanţ), borrowing money to buy a home is as inexpensive now as it will ever be, or has been since the 1950s anyway.

Additionally, lenders are feeling the pinch, and they have to eat, too. Lenders make money by lending money, and most are very enthusiastic to help a qualified buyer/borrower any way they can.

The Grand Traverse area possesses a beauty only GOD could come up with. Who knew 10 or 12,000 years after the last ice age that crystal clear, fresh water and finely ground, glaciated sand could blend so wonderfully. Add in swathes of sunshine, slashes of autumn splendor, blankets of snow, AND MOREL MUSHROOMS!! Í I meanÍ carpets of wildflowers, and the same thing that attracted the very first humanity to this area still attracts us today.

ItÝs gorgeous here! People want to live here.

Because of that, Grand Traverse area property continues to gain value. To summarize Roy Rogers: ýReal estate. He only made so much of that, right?ţ

This brings us to our next Significant Factor:
There will always be more people. And more and more of them will want to move to the Traverse City area. (See above)

Sounds over-simplistic, I know, but ever more demand with a fixed, finite supply spells ever-increasing value.

Look at property values in the last 25 years ˇ even in the last 10 years -˝ the last two of which have seen relatively flat equity growth in the Grand Traverse area. In 1997 you could spend all week looking at homes within the Traverse City limits with asking prices between $25,000 - $50,000. Today you will have a hard time gathering a handful of candidates for under $100,000. ThatÝs a two- to four-fold increase in values just in the last 10 years, and thatÝs not because people are taking so much better care of their homes in 2007 than they did 10 years ago.

Check back here for the remaining installments of State of the Real Estate Market - Fall 2007

Thanks for reading,


TEAM MIKE




Last Updated: October 19, 2001