Coldwell Banker Fairbairn Realty has seen over a decade of real estate transactions. This company started up right as the housing bubble popped causing a wide spread financial crisis felt by all.
In 2008, Emmet County had 444 residential real estate transactions close (according to the Northern Michigan MLS statistics). The average price of a home sold was $297,106.
Comparing that year — the height of the crisis — to just two years earlier, and you see 496 home sales and an average sale price of $344,021 in 2006.
404 homes sold in 2009 showing that sales were on the decline. The average price of a home sold in 2009 was $204,292; dropping dramatically from 2008 and especially 2006.
By 2010 it seemed that Emmet County had already begun to recover from the downturn. With 436 home sales and average prices ticking upward at $236,793. Though, it took 5 more years before average home sale prices reached near what they were pre-recession.
By 2017 and 2018, the number of sales far surpassed 2008 numbers at 695 and 704 home sales per year, respectively. Average home sale prices were $376,952 (2017) and $332,199 (2018).
We know that we’ve been struggling with low inventory issues in 2019 but we have already had 537 home sales with an average sale price of $344,839. While we may have sold less (thus far) than the previous two years we have already surpassed 2018’s average home sale price.
In a previous newsletter, I noted that Lawrence Yun of the National Association of Realtors claimed amazing mortgage rates as a potential motivator for positive shifts in the market.
Last week saw mortgage rates at 3.625% for a 30- year fixed loan which was a drop in rate likely due to the stock market. A week prior to this, late September, rates were at 3.375%. Still though, rates in 2008 averaged 5-6% for a 30- year fixed rate, putting 2019 rates ahead of the past.
Mortgage rates have been on a steady decline since 2014 (see attached chart). While they move around a bit from month to month, it is important to remember that year to year, rates have held steady under 4% since 2014 and have remained there throughout 2019.
If you’d like more information on this data, please do not hesitate to reach out. We’d be more than happy to discuss and send along more information.