Graham Duryee\’s Blog

How fast the seasons change, clear and sunny one day then cold with 20 inches of snow on the ground!   If only our real estate market would move as  quickly!  

We are continuing to see market contraction compared to 2009.   Foreclosures and short sales have, in some price ranges, reduced the number of homes so dramatically that there has been a frenzy of activity from buyers who are ready, willing and able to purchase.   However in most areas we are seeing the months of inventory increasing due to decreasing sales activity.   The areas I am writing about include the West Michigan area south of Grand Haven to the eastern Ottawa County line then south into Allegan County and just north of the South Haven area with Lake Michigan as the western boundary of my market area.

Median sale prices are hovering in the $115,000 area with sales shrinking since June 2010 as compared to 2009 where we still had the influence of the stimulus package for home buyers.   Interest rates are essentially 1% lower this year than last which allows most buyers to purchase $5,000-$10,000 higher.

The two offices I manage as a real estate broker are doing very well considering the market and I am extremely proud of my Realtors as they persevere in the current market finding ways to get their listings sold and find good homes for their buyers.

I am thankful everyday for the opportunities provided by Greenridge Realty.   Low monthly fees, stable commission structures with easy to reach bonus levels, a technology platform that works and other tools that separate us from the pack!   These tools and stable programs support me as a managing broker and allow me to be able to show other Realtors what   great  opportunities are offered by Greenridge Realty whether one is new to the business or looking for new opportunities after several years in the business with another broker.

 Good things happen in West Michigan all year long and we trust that tourism, new companies coming to town and the expansion of others will allow us to grow again.   Just like my management philosophy where I have to have an environment where one can learn, earn and grow!  

Happy Holidays!   Call me anytime!

                  ready, set, go!

Thank you for the opportunity to share my views, opinions and information I feel is relevant for my blogsite.   2009 is just around the corner and we have changes   hourly, daily and weekly around us creating chaos and rewards depending on ones situation.

Real estate professionals want to believe they are independent but are the least willing group to embrace change in many cases (including me).   As I have called, e-mailed and met with Realtors I would like to have on my team at Greenridge I have observed and learned alot as we discussed the market, a transaction we are working on or other related topics both personal and business.

The majority do not have a written business plan and if they have goals they are often unrealistic and will not be achieved.   So I give thanks that I can write about this and offer opportunities in this market to help other Realtors enhance their business and coach them to higher success.

I am looking for Realtors who want to move from $500,000 in production to over a $1,000,000; for those who want to double their production and those who are desiring to maintain a level of production that will pay their bills and allow vacations.

Great technology, competitive monthly costs and commission programs, good office locations (Holland and Hamilton), continued growth since 1980 and the best managerial support and encouragement in the area!   Come see what we have, talk about change and let me help you enhance and augment your business.

Wow!   What an incredible day on Nov. 4th!   People around the world excited about what happened in the United States!   Our democratic process continues to work and allow Americans to have their voices heard.

Housing is a key piece of our economic recovery.   Today in the Holland, Michigan market there were about 55 homes available for less than $59,900.   Two years ago it was difficult to find anything under $80,000-$90,000.  

There is some light in the tunnel as lenders are beginning to react positively toward working out short sales on the mortgages they have in trouble. Banks have mortgage money but buyers have to jump through a few more hoops to get it.   The majority of sellers are competitively pricing their homes to attract the few buyers that are taking advantage of this market.   Inventory is shrinking a little bit.

If one has money in the market and has concerns about that money one should take a look at buying one  of the homes in the area under $60,000, doing some work on it, renting it for a couple of years or longer.   If you have children who will be headed to college in a few years an investment property can be leveraged for tuition and the income can often soften the cost of college tuition.

If you think you will have children attending Hope College someday buy a house close to the college.

What happened to August?   Was it summertime?   August slid by and here we are in September with school starting, political party conventions over and changes on the horizon.

This week the interest rates dropped below 6%!!!   Buyers from this point on will normally need money for a downpayment as most of the high risk 100% financing options are no longer available.   Typically a buyer will need 3.5% to 5% of the purchase price to get into their new home.   Sellers can still contribute to the buyers closing costs.

Visualize a map with Lake Michigan on the west, Fillmore Street (a road about 3/4′s of the way to Grand Haven) on the north going east to the Ottawa County line then south along the eastern border of Ottawa and Allegan Counties to the VanBuren County line west to Lake Michigan.   Let me share what August was like based on the reportings to the West Michigan Lakeshore Association of Realtors MLS.

115 single family homes sold in August 08 with median sales price of $134,000.   18 condominiums sold in August 08 with a median sales price of $141,500.

In August 07 there were 166 single family homes sold with a median sales price of $150,000 and 29 condominiums sold with a median sales price of $138,000.

We here talk about commodities and how they affect our marketplace today.   In real estate the most precious commodity today is a good buyer!

Throughout my blog I have continually encouraged buyers and if we have bottomed out then this may really be the time to get into the market and buy a home.  

Do you know somebody who needs to buy a home, is outgrowing their current home or needs to get everything on one floor?   I am only a click away, contact me anytime and put my 31+ years of knowledge and experience to work!

The normal spring market had a few sparks of ignition but never caught fire.   Summer approached and at the end of July we still are working in a market where we had 2,234 residential properties for sale in the greater Holland marketplace (Realtors call it the H area) as of Monday July 28th at noontime.   Single family homes made up 1,780 of these units for sale and 454 were condominiums. Inventory has climbed 200 units plus or minus in the past 3 months.

Using the information from the MLS provided through the West Michigan Lakeshore Assoc. of Realtors to find the homes currently on the market and what has sold reveals that single family home sales are off 19.5% from a year ago at the same time and condo sales are off 38% from a year ago.   So at the current absorption rates we have a 16.5 month supply of single family homes and 26.2 month supply of condominiums.   Lots of choices for buyers who are in the market for a home or coming into the market in the next month or so.   I provide this information weekly to the Realtor Associates in the two offices I manage so that they have current market info for their clients.

President Bush signed into law this morning a housing stimulus package to assist in many areas where the housing market is hurting, needs reinforcement and clarifies programs for downpayment assistance.   In almost all cases now buyers will need a downpayment of 3% of the purchase price or more depending on their income and available cash.   Cash for downpayments can come from savings, IRA’S, employer assitance programs and gifts from parents and/or family members.  

If you reside in the City of Holland the ordinance regarding the height of the grass in the yard was recently amended.   What brought this on?   The number of foreclosures and bankowned properties where there is nobody residing in the property or no upkeep being done.   After appropriate notice the City will send someone to cut the grass if the owner has not and the bill(s) will be attached to a tax bill as a lien on the property.   Years ago on one side of my home there was a retired couple who had some physical difficulties and on the other side a rental home often vacant.   There were many times that I mowed both yards on one side to help my neighbor and on the other so our neighborhood would look nice.   I just did it!+

The City of Holland is working on a marketing campaign to promote the benefits and amenities of living in the City which can be used by employers, schools, Realtors and others showing that the City is the hub of what happens in this area just as Grand Rapids is a hub in that greater metropolitan area.   Local companies and vendors will be putting together a dynamite website and dvd for this campaign.

Yes, I am tired of the political campaigns and the promises that will never see the light of day and wish all that money would go to  healthcare, fix our roads or the schools.   Probably wishful thinking!   Have a great day!

Gas prices hit $3.99 and I saved a nickel a gallon at $3.94 today.   It is the top of mind issue for almost everyone these days and affects everyone differently depending on their individual situations.   These issues make one reflect if one can on where we are today in relationship to what was and then we come back to the reality of today.

 The spring real estate market is usually the start of an increased business cycle where more buyers enter the market and more homes get sold as buyers and sellers achieve their dreams.   Even though the current local market is off from the past year there are still the same anticipations and actions occuring in the local market.

My reflection today takes us back to the spring of 1977, my first year in the real estate business, when interest rates were 7.75-8% and most lenders required a minimum of 10% of the sale price as a downpayment to get a loan.   As the year progressed we saw interest rates climbing toward 9-10% and then the early 80′s when we were faced with interest rates approaching 20%.   Buyers continued to enter the marketplace each year, sellers continued to put their homes up for sale and home ownership continued to be looked at as a long term investment or perhaps in other terms a forced savings account.

Every decade has a cycle or cycles which affect the economy of which housing is a leading component.   Owning a home is one of the major investments and or desires of 60-70% of our population.   Everyday people die, get married, get divorced, change jobs, retire or have something happen that affects what they will do for their shelter needs.   So there is always some degree of demand for housing.

This week we see the big national players, Fannie Mae, Freddie Mac and others making policy changes that now require buyers to have minimum downpayments of 3-5% in order to secure a mortgage.   Buyers have to have adequate savings to show the lender that funds are available to at least make the first and/or second mortgage payment.   So 30 years later we have come full cycle requiring buyers seeking to purchase a home to have 5-10% of the purchase price they qualify for available in the bank at the time of purchase.   They now will have some equity in the home they are buying!  

Big news?   No!   Good business?   Yes!   That’s it for today!

Awakening on March 11, 2008 it felt like I had slept wrong as I had pressure in the area around my right shoulder and a bit up my neck.   After taking two aspirin and jumping into a warm shower the pressure did not go away or ease.   Since I never complain about anything we headed to Holland Hospital, probably less than an hour since getting up.  

Seventy nine (79) minutes after arrival at Holland Hospital I had a stent in place and was being wheeled to my room.   Wow!   The doctors and nurses remarked over and over that it was a miracle that I took the aspirin and came right into the hospital.  

Released home on March 13th I took two weeks off per instructions and orders from above!   Having never taken any medication other than an allergy tablet or antibiotic I was concerned about contradictions from the medley of meds I was now having to take.   After two weeks things felt okay, I returned to work and began the cardio-rehab program at the hospital three times a week.

Cards, notes, e-mail, visits from family, friends and my Realtor family really were appreciated along with flowers and gifts of things to read.   One begins to take stock of ones life and the alternatives!   My concerns about the challenging real estate market began to take a different  focus as I focused on taking care of me!   Seeing the concerns in the eyes of Sylvia and family really hit home.

Being upbeat most days it has been easier for me to look at the opportunities we have each day and not focus on the negatives that often push into our lives and profession.   Personal time and focus on me is now a priority in order to move forward.   It now is a priority to make use of the time available each day to see if I can make real estate work in 6 hours, 5 days per week using other time for things necessary for my rehab.

So this session is about me and a reminder to my Realtor family to be better planners, be better listeners to your own body and to remember that our rewards come from caring service in the interests of our clients and giving back to our communities time and talents.

January was a 90 day month according to one of my good friends but February felt the same.   The Greenridge offices in Holland and Hamilton have stayed busy during these past couple of months with all of us diligently working to service the business we have been fortunate to have so far.  

Interest rates have been up and down daily as have the gas prices.   It is almost as if they are linked together or have the same prognosticator.   The median sales price for the greater Holland area has hovered in the $135,000-$145,000 with a large number of sales still the bank owned, HUD and foreclosed properties.   Our offices have taken advantage of these opportunities for our clients as well as continuing to educate ourselves about the opportunities the market allows with short sales and bank owned homes.

As I review the activities of the last few weeks the thing that has struck me the most is the difficulty we now have in getting loans closed on time.   Dealing with lenders that are not from this area, located in other states, has been a nightmare of delays, the discovery everyday we need to have one more document signed and faxed back and the continual message that the loan is in the hands of the underwriter.   What used to be about a 30 day process to close on your new home or the home you are selling is now 45-60 days.

Recommendation:   Stay local, use your hometown banks or institutions where you are known and you know the person you are dealing with.   Take the recommendations of your Realtor.   Get a second opinion once you have your first “Good Faith Estimate” in your hands.   Also put some money down on your purchase so that you are not financing 100% or more of the purchase price.

Enjoy the sunshine, get some fresh air and call a Realtor when you are ready to buy or sell!

The rate updates from area lenders came rushing in by e-mail this week showing 30 year fixed rate mortgages available at 5.25%.   The drop in rates this week moved the payment on a $100,000 mortgage to $552 per month for principal and interest.

The reality for buyers is that a $100,000 mortgage payment dropped almost $50 per month in just a few days.   So more buyers can afford a home.   More buyers are now able to afford a home in a price range that is $5,000 to $10,000 higher than they were a week ago.  

If you are paying rent of $650 a month or higher you can probably buy a $100,000 home for the same amount as rent.

http://www.inman.com/inmanstories.aspx?ID=65742  is your link to the subject matter today!

Wow!   One year ago we were looking at interest rates in the West Michigan market hovering around 6.5% and today the lender updates we receive via e-mail are at 5.75%.   That is almost a $50 a month difference in payments on a $100,000 mortgage today.   The translation is a lower monthly payment or qualifying for  a home that is $5,000-$10,000 more than last year.

When I checked this morning there were 1,931 residential properties available in the area south of Grand Haven (Fillmore Street), east to Hudsonville (28th Ave), south to the City of Allegan and then west along the Allegan County VanBuren County line to Lake Michigan.   There are currently about 200-240 fewer homes on the market than there were at the end of November 2007.   Some of this is due to people taking their homes off the market until March or April, sales that have been completed and expiration dates where sellers have not relisted the properties, again thinking winter months are slower.

Sellers need to be very aggressive with their pricing so that their respective homes are the best priced in the neighborhood and area and be ready, willing and able to work with pre-approved buyers.   Buyers pre-approved subject only to the appraisal of the property have so many great options with todays inventory of homes available.