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Julia Lilley and Linda Zajac
Century 21 Northland
241 E State Street
Traverse City MI 49684
Julia’s cell: 231-534-4600
Fax: 231 929 2780

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Displaying blog entries 11-20 of 59

U.S. Homes Sales Decline 27% in July

by Julia Lilley

With sharp drops in sales of existing and new homes being broadcast in the newspaper and leading the nightly newscasts, it's it’s hard to keep a positive perspective about the housing market.  According to Dr Lawrence Yun, leading economist with the National Association of REALTORS this is not to be unexpected as Consumers are rationally responding to the expiration of the tax stimulation. 

However a 27 percent decline in resales from June to July, and a 12 percent drop in sales of newly-built houses during the same period have done very little to build consumer confidence in the market.

Alas there are some positive things starting to happen in the national housing market. Housing affordability is at or near an all time high.  This has been created by the lower home prices and mortgage interest rates for thirty year fixed mortgages in the mid 4% range.  Right now 72 .3 percent of median-income American families can now afford to buy the median-priced house. Historically that number has stayed in the low 60 percent range, and sometimes slipped below 50 percent.  But the problem remains that even with the affordability factor being so great, consumers are holding back.  The overall lack of confidence is the reason and the employment figures just fuel the lack of confidence.  Look for a sharp rebound in the market when employment numbers begin increasing and buyer confidence returns. 

We were all warned that there would be a sharp drop off in home sales following the tax credit.  We are witnessing what was predicted.  The good news is that the lull could be short lived.

Optimism for the Housing Market

by Julia Lilley

 

Optimism for the Housing Market

Falling interest rates, an improving economy and a last bit of economic stimulus are helping the housing market stage a revival. In April alone, sales of existing homes jumped 23% from a year ago, according to the trade organization National Association of Realtors. Sales of new homes rose even faster, up 48% from a year ago. What's more, a growing number of economists believe the three-year plunge in housing prices is at an end.

"Units, volume and sales price are up on all fronts," said real estate broker Todd Hetherington, based in Alexandria, Va. "Houses that are priced well are getting multiple offers in the first week."

A recent study of 92 economists by financial-products firm MacroMarkets found that on average housing prices are expected to drop slightly in 2010 and begin rising again next year.

"Low interest rates will be a powerful incentive," says William Hummer, chief economist for Wayne Hummer Investments. "People who want to be home owners will get back into the market."

 

-- "Is the Housing Market on the Rebound?," by Stephen Gandel, Time Magazine, May 26, 2010.

Zandi: "It’s the Best Time in Our Generation to Buy"

Thanks to the European debt crisis, U.S. mortgage rates are at historic lows. The current average rate for a 30-year fixed loan is 4.87%, according to Bankrate.com. That's the lowest rate for the 30 years since Bankrate started keeping track 25 years ago. Even jumbo loan rates – loans for more than $417,000 – have fallen. The 30-year fixed jumbo loan is at an average rate of 4.5%, down from nearly 6% at this time last year.

"It's the best time in our generation to buy," said Mark Zandi, chief economist at Moody's. "It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn't pick a better time to buy or re-finance."

-- "Mortgage Rates at New Lows, Thanks to Europe's Debt Crisis," CNBC, Mark Koba, May 24, 2010.

Existing Home Sales Jump in April

Sales of existing homes increased in April for the second month in a row, as buyers took advantage of the government's home-buyer tax credit. Sales rose 7.6% to a seasonally adjusted annual rate of 5.77 million units, according to the National Association of Realtors. Year-over-year, existing-home sales were up 22.8% in April. Prices also increased, with the median price for an existing home at $173,100 in April, up 4% from a year ago.

"Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears to be essentially over," NAR economist Lawrence Yun said.

-- "Existing Home Sales Buoyed by Tax Credit," Wall Street Journal, by Jeff Bater and Darrell A. Hughes, May 24, 2010.

Regional Update: Good News from Markets around the Nation

New York Metropolitan Area

While the winds of the housing recovery continue to blow at a moderate pace across the country, in the New York metropolitan area, it's a nor'easter. Earlier this week, the National Association of Realtors reported sales of existing homes jumped 7.6% in April from the same month a year earlier. A large share of the jump was attributed to a handful of especially strong markets in the Northwest and the Northeast, including New York. Sales of existing homes in New York City and its surrounding suburbs posted a 39.6% gain, the fourth-largest rise in sales activities in the country, after Portland, Ore., (49.2%), Pittsburgh (42.2%) and Boston (41.8%).

-- "Strong Markets Pump Up Home Sales," by Robbie Whelan, Wall Street Journal, May 26, 2010.

Pittsburgh

The rush to meet an end-of-April deadline to qualify for a federal tax credit helped boost average home prices in the Pittsburgh region last month by 7.7% compared with a year ago. The average sale price in April jumped to $146,049 from $134,756 last year, according to figures released by RealStats, a South Side company that provides real estate information. "The market here is still good. I have three offers coming in on one of my properties, and that may be because mortgage rates have dropped even lower," George Hackett, president of a Pittsburgh real estate company.

-- "Pittsburgh Home Prices Surge," by Sam Spatter, Pittsburgh Tribune-Review, May 26, 2010.

Massachusetts

Massachusetts home sales continued to surge in April as buyers rushed to take advantage of low interest rates, affordable prices and the final days of the home-buyer tax credit.

Last month, 3,357 single-family homes were sold in Massachusetts, compared with 2,351 for the same month last year - a stunning 43% hike and the 10th consecutive month of increased sales, according to the MLS Property Information Network.

Prices also rose. The median price of a single-family dwelling increased by 7% to $291,180, marking the fifth straight month that home prices have risen year-over-year.

Condominium sales were also up dramatically from a year ago, according to MLS data. A total of 1,546 condos changed hands in April, a 62% hike for the same period last year.

"Confidence is building," said William Dermody, a regional vice president for the Massachusetts Association of Realtors.

-- "Mass. Home Sales Soar in April," by Thomas Grillo, Boston Herald, May 25, 2010.

Michigan

April home sales in Michigan rose by 9.46% in April from 10,042 in April 2009 to 10,992, according to the Michigan Association of Realtors. The average sales price in Michigan for existing home sales in April rose nearly 15% from $88,171 in April 2009 to $101,282.

-- "Michigan Existing Home Sales Up," by Greta Guest, Detroit Free Press, May 24, 2010.

Las Vegas

The price of existing homes in April in Las Vegas rose to its highest level in more than a year, according to figures released Tuesday by SalesTraq. The median price of existing homes closed in April was $126,000, the highest median price since it was $134,000 in March 2009, the firm reported. The price is $6,000 higher than March 2010. Prices had been expected to increase since foreclosure sales have declined in recent months.

-- "Report: Home Prices at Highest Level Since March 2009," by Buck Wargo, Las Vegas Sun, May 18, 2010

Pending Home Sales on an Upswing

by Julia Lilley

Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

Regional Numbers

  • The PHSI in the Northeast declined 3.3 percent to 75.1 in March, but remains 27.2 percent higher than March 2009.
  • In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago.
  • Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009.
  • In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.


“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

Source: NAR

Green Fest Traverse City

by Julia Lilley

http://www.thegrandvision.org/blog/2010/05/06/humane-resources-kim-pontius-and-the-green-solutions-4-expo/

 

 

Humane Resources: Kim Pontius and the Green Solutions 4 Expo

by Vicente Ramos, Citizen Journalist for the Grand Vision

G4On Wednesday afternoon, I went to the Traverse Area Association of Realtors (TAAR) office, ostensibly to do an interview with Kim Pontius on the association’s upcoming GreenFest event Saturday (5/8). Less than two minutes into the conversation, however, I realized the real story was actually sitting opposite me.

Kim Pontius, Executive Vice President of TAAR, and one of the lead organizers of GreenFest, is a savvy businessman, a passionate advocate for intelligent environmental planning, and an intellectual who receives NASA tech briefs and can cite obscure articles on marketing from a 1960 copy of the Harvard Business Review—from memory. Perhaps more importantly, he embodies that new image of a business leader who sees commerce and ecological responsibility as mutually inclusive propositions.

Kim PontiusPontius hails from Indiana, but his roots in the Traverse City area are extensive and profound. For twenty years, he vacationed here, attracted by the natural beauty and what he calls “a creative class of people.”

“There’s more creative juice in this area than virtually any other part of the country,” he said with a knowing smile. “The potential for diverse, economic growth is undeniable, due in part to the people and in part because of the access to the greatest concentration of fresh water in the world and the many possibilities this engenders. There’s no doubt in my mind Traverse City will grow over the next twenty years,” he continued “that’s why the need for intelligent planning that respects our people, natural resources and environment is crucial.”

Significantly, this conviction is informed not only by his love for the area’s natural beauty and the creativity of its people, but also by a healthy respect for research.

Throughout his life, Pontius has always been a reader, fascinated by the natural sciences, art, spirituality and agriculture. Little wonder that his perspective on environmental planning and development is, in part, informed by Albert Birabasi’s Linked, where the connections between ourselves, our commerce, our education and our future are seen through the prism of an almost Zen-like appeal for a world view more consistent with what civilization can be than that which has obtained for over two millennia.

To wit, Pontius was attracted to an area where the possibility of intelligent planning and development was consistent with the needs of a population historically and economically rooted in its natural resources and a healthy respect for posterity—a community of entrepreneurs, artisanal farmers, laborers and others who know, intuitively, regardless of relative comfort or demands, the decisions we make today will have a profound effect on what we will leave our children. This world-view, more than anything else, attracted Pontius and his family to Traverse City.

“I’ve always been a risk taker,” he notes, “an entrepreneurial person who can weigh business costs and opportunity, but like so many native Michiganders, I’m also someone who understands that our greatest natural resources are also our greatest responsibilities. I know, for example, that what makes this area so attractive to visitors are our forests, lakes, rivers and streams,” he continued, “but I also know that what makes Traverse City such a great place to live are the people; people who understand that natural blessings require proper stewardship if we are to grow and develop into an area suitable for our children and their children. Therein lies my commitment to preserving the environmental integrity of our community.”

Whether heading TAAR’s environmental initiatives or speaking to a group of business people on the need for reasoned commercial and residential real estate development, Kim is an informed, articulate speaker with a sense of humor and no small sense of irony.

“You have to begin from the perspective that development—be it economic or social—is multi-faceted and contingent upon interconnected components, all of which depend upon one another,” he says. “If you want to generate growth through mixed land usage, for example, you have to consider how your proposal will impact any number of community needs and requirements. Simply put, you cannot plan any type of housing or commercial development without first taking into consideration the transportation needs of future residents or workers.”

Given the state of international energy resources, Kim quickly adds, by “transportation” he necessarily means “public” transportation. “Transportation drives development, not the other way around," Pontius said. "Developing a site and then thinking about how people are going to get back and forth is simply not rational.” This thought, alone, encapsulates Kim’s take on the future of social and economic development in Traverse City and throughout America.

According to Pontius, more than at any other time in our nation’s history, unprecedented advances in science and technology promise a new world where our possibilities will be limited only by our imagination. Making the most of these extraordinary developments will require measured thought, respectful contemplation and considered stewardship of natural resources threatened by the very people who depend upon it. Somehow, I’m kind of glad people like Kim are helping us sort it all out.

Oh, and, by the way: GreenFest activities are scheduled for Saturday, May 8th at Clinch Park, 8 am to 5pm. Consult the TAAR website (www.taar.com/content/greensolutions4-greenfest) or call the Traverse Area Association of REALTORS (231-947-2050 begin_of_the_skype_highlighting              231-947-2050      end_of_the_skype_highlighting) for more information and a schedule of events.

Foodie Finds: 10 Surprising Food Cities

by Julia Lilley

From http://www.livability.com/top-10/foodie-finds/10-surprising-food-cities

Foodie Finds: 10 Surprising Food Cities

Foodies worth their sea salt know metropolitan cities like Paris, New York City and San Francisco are considered food meccas. But diverse dining offerings and a deep-rooted food culture can be uncovered in smaller towns and cities, too. Livability.com has searched 200 of the most livable cities in America to find the 10 most surprisingly vibrant cities for foodies to flex their taste buds. These are cities and towns where gourmands can find some undiscovered gems. From farmers markets and independent restaurants to quality of life and cost of living, these aren't just some of the best cities for food — they're great communities for everyone. For more in-depth info about these great food cities, just click on the city names below. Bon appetit!

 

 

 

 

 

Vacation-Home Sales Increased in 2009

by Julia Lilley

Vacation-Home Sales Increased in 2009
Vacation-home sales recovered in 2009 while investment sales fell sharply, according to the National Association of REALTORS®.

NAR’s 2010 "Investment and Vacation Home Buyers Survey," covering existing- and new-home transactions in 2009, shows vacation-home sales rose 7.9 percent to 553,000 last year from 513,000 in 2008, while investment-home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. Primary residence sales rose 7.1 percent to 4.04 million in 2009 from 3.77 million in 2008.

NAR Chief Economist Lawrence Yun said, “The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat. Investment buyers primarily seek rental income, with six in 10 planning to rent to others, although one in five wants a family member, friend, or relative to use the home.”

Half of vacation homes purchased last year were in the South, 21 percent in the West, 17 percent in the Midwest and 12 percent in the Northeast. Seven out of 10 were detached single-family homes.

The distribution of investment sales was fairly close to the distribution of population: 35 percent in the South, 25 percent in the West, 24 percent in the Midwest and 16 percent in the Northeast. There was a higher share of condos in investment sales: 27 percent of investment homes were condos vs. 21 percent of vacation homes.

Here is a breakdown of statistics from the survey:

Vacation-Home Buyers

· Only one in four vacation-home buyers plan to rent their properties to others.

· 26 percent of vacation-home buyers intend to use the property as a primary residence in the future.

· The vacation-home market share rose a percentage point to 10 percent.

· The median transaction price of a vacation home was $169,000 in 2009, compared with $150,000 in 2008.

· Three out of 10 vacation-home buyers in 2009 paid cash for their properties

· The typical vacation-home buyer in 2009 was 46 years old, had a median household income of $87,500, and purchased a property that was a median distance of 348 miles from their primary residence.

Investment-Home Buyers

· One in five investment buyers plan to use their homes for vacations or as a family retreat.

· 8 percent of investment buyers intend to use the property as a primary residence in the future.

· The market share of homes purchased for investment was 17 percent in 2009, down from 21 percent in 2008.

· The total share of second homes declined from 30 percent of sales in 2008 to 27 percent in 2009.

· The median investment property sold for $105,000 last year, down 2.8 percent from $108,000 in 2008.

· Half of investment buyers paid cash.

· Investment-home buyers last year had a median age of 45, earned $87,200, and bought a home that was relatively close to their primary residence – a median distance of 24 miles.

· Roughly one in four investment buyers purchased more than one property in 2009.

Source: NAR

Just How Much Will Waiting Cost?

by Julia Lilley

Just How Much Will Waiting Cost?
While no one knows for certain what the future holds, two things appear clear. Home loan rates will likely be higher in the future, and free money from the government will be gone. These deadlines will affect both affordability to purchase and the opportunity to refi.

 

First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result.

In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%.

For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards.

 

The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers.

If you or anyone you know is looking to purchase or refinance a home, waiting could be costly!

The Closing Process

by Julia Lilley

Go to http://milta.org/ for an easy and fun video outlining the Closing Process for buying a home.   

Appeals court: No tax bump

by Julia Lilley

Published: February 18, 2010 12:50 am      FROM RECORD EAGLE  

Appeals court: No tax bump

Ruling says families can transfer home to next generation without tax hike

BY BRIAN McGILLIVARY
bmcgillivary@record-eagle.com

TRAVERSE CITY -- A local woman's victory in a state appeals court will allow families to transfer a home from one generation to the next without an accompanying hike in property taxes.

The appellate court ruled in a unanimous opinion released Wednesday that Traverse City improperly lifted the taxable assessed value on Terrie Taylor's bayfront home on Peninsula Drive.

"It's huge," said Robert Parker, Taylor's attorney. "This is going to change a lot of things about estate planning, if it stands."

City Attorney Karrie Zeits called the court's ruling "overly broad ... and potentially disastrous." She expects the city will appeal.

An almost identical case decided in December, Klooster vs. Charlevoix, dictated its decision in Taylor, the court said.

Taylor's father listed her as a joint tenant on the property deed about a month before his death in 2005. The following year the city boosted the assessment and increased Taylor's taxes by about $4,000 annually.

The court ruled ownership did not change hands because of the joint tenancy, and the taxable value should have remained capped.

State law limits increases in a property's taxable value to the rate of inflation. When the property is sold or transferred, even in family trusts popular among estate planners, it becomes uncapped. The usually higher assessed value then becomes the taxable value used for tax bills.

Taylor's taxable value jumped almost $100,000 when the city assessor uncapped it. Under the court ruling the 2009 taxable value will drop from $293,579 to about $191,000 and the city will owe her more than $16,000 in back taxes, interest and attorney fees.

Charlevoix also appealed in the Klooster case, and Parker said if the ruling holds, he expects joint estate planners to move homes out of trusts and into joint tenancy to avoid taxes.

Zeits said the court created a new rule that goes beyond family transactions. "Anyone could structure a transaction to fall within the court's new parameters, and potentially we could never have a property that becomes uncapped," Zeits said.

Taken to its limits, joint tenancy literally could last one minute among buyer and seller, Zeits said.

Parker said it's possible the ruling could be used to disguise property sales, but said those weren't the facts in the Klooster and Taylor cases.

"I'm not sure that would really work," he said.

City assessor Debra Chavez said the decision will have a negative financial impact on city, county, and school tax revenues, but the situation would be considerably worse under Zeits' theory.

"I believe it would pretty much bring government to its knees. There would be no way local governments could survive," Chavez said. "The legislature knew government can't live on the rate of inflation alone, and that's why they put uncapping in there."

From Traverse City Business News

by Julia Lilley

 

January 14, 2010


 

 

Hold Your Applause Until The End

“If you done it, it ain’t bragging.” – Walt Whitman

We can’t help it; we’re proud of our Grand Traverse region. And for good reason, as more national accolades have come our way recently…

Old Mission Peninsula: Chicago Sun-Times Travel Writer Lori Rackl criss-crosses the globe, and has compiled her “10 picks for 2010.” Along with sites in Qatar, Germany, and Shanghai, Rackl also urges readers to visit our own Old Mission Peninsula. She writes, “Nearby Napa is how I like to think of this 18-mile-long peninsula — home to seven unique wineries — north of Traverse City.” Rackl also cited Grey Hare Inn and Chateau Chantal as Old Mission favorites.

Horse Shows by the Bay: Our very own summer equestrian festival continues to turn heads locally and nationwide. PhelpsSports.com, a leading equestrian web site, has named Horse Shows by the Bay the 2009 Horse Show of the Year. Each year PhelpsSports.com asks its 500 subscribers to select their favorites in several categories, including horses, riders, trainers and shows. More than 1,000 horse shows are conducted nationwide each year. This year’s Horse Shows by the Bay will be held July 8 – August 1.

Overnight Pet Tags: This Traverse City-based home business started by Marco Barberini has been named a finalist for Homepreneur of the Year by CityMax, a leading Vancouver-based web developer that has built more than 572,000 business web sites. Barberini tells CityMax his online business has grown 100 percent per year, and that he devotes only seven hours per week to the enterprise.

Crystal Mountain: Crystal has nabbed two honors for its new Crystal Spa, which opened a year ago. SpaFinder rated it among the Ten Best internationally in the Winter Sports Category. Some 360,000 votes were cast on the site, which Forbes and USA Today regard as the premier online spa travel resource. And, the November/December 2009 issue of Spa Magazine features Crystal Spa among its Silver Sage Readers’ Choice Awards for Favorite Hotel/Resort Spa: Northeast, Mid-Atlantic and Midwest. More than 100,000 votes were cast, with Crystal Spa second only to La Prairie at the Ritz Carlton, New York in its category.

Marathon Automotive: The December 2009 issue of Motor Age Magazine, the leading publication of the automotive service industry, has named Marathon Automotive (located at 845 South Airport Rd in TC) as one of the top ten automotive repair shops in the USA. Shops were judged based on customer service and satisfaction, history and mission, business philosophy, employee relations, shop management, technical training and certifications, tools and equipment, parts quality standards, web site, sales and marketing and industry/community involvement. Marathon is the only Michigan shop to win in the five years the magazine has published the awards. Owner Russ Schofield started Marathon in 1980.

Displaying blog entries 11-20 of 59

Julia Lilley and Linda Zajac
Century 21 Northland
241 E State Street
Traverse City MI 49684
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