Bill Martella - Blog

Markets in Michigan among the most affordable!

Bill Martella — Tue, 21 Oct 2008 10:59:00 GMT

Thursday, September 4, 2008provided by

Stacy Williams owns a three-bedroom house with a full basement and central air-conditioning in a quiet neighborhood on the upper west side of Youngstown, Ohio.

Williams, now 33, was earning $8.05 an hour as a manager at McDonald's when she moved into the house with her husband, a laborer at a construction equipment manufacturer, and son back in 2004. The couple's combined annual salary was $33,000. But the purchase didn't require much of a financial stretch: The house cost $48,000. "If you have the credit score to do it, there's nothing that can stop you from buying a home in Youngstown," said Williams, whose plans for the house include a second bathroom.

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A fallout from the real estate slump is that once again many homeowners are forced to look for homes that are within their budget. Access to cheap adjustable-rate mortgages gave many Americans the chance to live in homes that under normal circumstances they could have never afforded. People such as the Williamses are lucky that their income matches up well with the average home prices in Youngstown, but if they had lived somewhere more expensive, they might not have been able to buy their own home or would have spent too much, and now could have been facing the prospect of foreclosure.

So what metro areas are most and least affordable? The Youngstown metro area, which has a median income of $52,000 and a median home price of $77,000, is the second most affordable metro area in the U.S., according to the new National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) for the second quarter. BusinessWeek.com used the index to rank the 10 most affordable and 10 least affordable major metros based on incomes and home prices. Indianapolis was the most affordable-91.6% of homes sold in the second quarter could be afforded by median-income households. The least affordable was the New York City-White Plains (N.Y.)-Wayne (N.J.) metro area, where only 11.4% of homes are affordable to median-income earners. (A decade ago, 66.4% of New York-area homes were affordable).

Affordable Youngstown

The New York area became the least affordable large metro in the country for the first time in the second quarter, largely because home prices in the costly California markets have been plummeting. Los Angeles had been the least affordable large metro since 2004, and California markets have topped the list since at least 1991. Unlike other bubble markets, home prices soared in the New York area during the boom but haven't fallen as far as they have elsewhere.

The most affordable markets, on the other hand, haven't changed very much. They didn't appreciate much during the boom, and most aren't seeing dramatic declines. "The most affordable places are mostly where there are no job markets," said Gopal Ahluwalia, vice-president for research for the National Association of Home Builders. "There's little demand....Nobody moves to a market because housing is cheap. The movement is for jobs."

Tibitha Matheney, the agent with ERA Tri-Sun Real Estate in Youngstown who helped Williams buy her house, said she represented two other McDonald's workers who bought homes. She said she has shown customers houses that cost as little as $9,000. The former steel town has struggled in recent decades as that industry has declined and sent jobs overseas. The largest employer is now a General Motors plant.

Matheney adds that some residents take advantage of the low-cost housing in the Youngstown area and commute to job centers in Akron, Cleveland, and Pittsburgh. "You can get a lot of house if you really look," she said. "A lot of times, people say, 'But it won't appreciate.' But it's still worth it because it's affordable." The most expensive homes in Youngstown cost about as much as starter homes in New York City, and you couldn't even buy a parking spot in New York for what a median-priced house costs in the working-class Ohio town.

Buyer's Blues in New York

Longtime Manhattan renters Olive Hayes, 64, a New York City nurse, and her husband, Kevin, a Verizon employee, were hoping to spend no more than $450,000 when they started looking for a house more than a year ago. Hayes said she wanted a large apartment with a terrace and a separate living room and dining room. They wanted to buy, in part, because Hayes plans to retire and they will have to give up the spacious two-bedroom apartment they rent from the hospital. It's located in a doorman building overlooking the East River on 96th Street and First Avenue.

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On Aug. 25, the Hayeses closed on a one-bedroom pad in a newly built condo building eight blocks north of their current home. It doesn't have a terrace and is about 764 square feet, much smaller than what Olive Hayes had originally hoped for. It's going to be a tight fit for her plants and piano. "It's not easy. It would probably be $1.5 million for what I'm used to," she said.

Hayes' agent, Lynda D. Gray of Bellmarc Realty, said first-time buyers in New York often have to lower their expectations and stretch their finances. "The motivator is the investment," she said. "You're not going to have as much space as you like...but you're going to be able to sell for a profit and possibly buy something outside of the city."

"Many markets in Northern Michigan are far more affordable than the ones listed below! If youre in need of a home the time to buy is right now" .... Bill Martella, Associate Broker, Coldwell Banker Schmidt Realtors of Gaylord, Michigan.

The 10 Most Affordable Housing Markets

1. Indianapolis-Carmel, Ind.
Median home price: $108,000
Median household income: $65,100
Share of homes affordable to median-income families: 91.6%
Share of affordable homes in Q2 1998: 73.1%

2. Youngstown-Warren-Boardman, Ohio-Pa.
Median home price: $77,000
Median household income: $52,000
Share of homes affordable to median-income families: 90.1%
Share of affordable homes in Q2 1998: 80.1%

Wikimedia.org/Andrew Balet

Detroit-Livonia-Dearborn

3. Detroit-Livonia-Dearborn, Mich.
Median home price: $92,000
Median household income: $54,400
Share of homes affordable to median-income families: 88.4%
Share of affordable homes in Q2 1998: 62.8%

4. Warren-Troy-Farmington Hills, Mich.
Median home price: $140,000
Median household income: $78,800
Share of homes affordable to median-income families: 86.8%
Share of affordable homes in Q2 1998: N/A

5. Grand Rapids-Wyoming, Mich.
Median home price: $112,000
Median household income: $59,200
Share of homes affordable to median-income families: 86.3%
Share of affordable homes in Q2 1998: 74.8%

Wikimedia.org/Joel Rossol

Toledo

6. Toledo, Ohio
Median home price: $104,000
Median household income: $60,100
Share of homes affordable to median-income families: 85.5%
Share of affordable homes in Q2 1998: 77.3%

7. Dayton, Ohio
Median home price: $102,000
Median household income: $59,800
Share of homes affordable to median-income families: 85.4%
Share of affordable homes in Q2 1998: 83.8%

8. Akron, Ohio
Median home price: $100,000
Median household income: $61,700
Share of homes affordable to median-income families: 84.5%
Share of affordable homes in Q2 1998: 69.6%

Syracuse

9. Syracuse, N.Y.
Median home price: $98,000
Median household income: $61,000
Share of homes affordable to median-income families: 84.2%
Share of affordable homes in Q2 1998: 83.6%

10. Scranton/Wilkes-Barre, Pa.
Median home price: $91,000
Median household income: $54,700
Share of homes affordable to median-income families: 82.5%
Share of affordable homes in Q2 1998: N/A

Coldwell Banker sets new precedent with National "10 Day Sales Event"

Bill Martella — Wed, 08 Oct 2008 12:26:00 GMT

CONTACT INFORMATION:

Mike Schmidt Matt Case
President Director of Support Services

(231) 620-5555 (231) 357-1609

Mike.Schmidt@CBGreatLakes.com Matt.Case@CBGreatLakes.com

COLDWELL BANKER Schmidt Family of Companies will participate in NATIONAL 10-DAY SALES EVENT

Local Sellers Will Reduce Home Listing Price By Minimum of Five Percent; They Will Join Thousands of U.S. Home Sellers Who Reduce Their Listing Prices Between Oct. 10-19

Majority of Coldwell Banker Sales Associates Surveyed Nationally Say a Modest Reduction in Listing Prices Will Help Bring More Home Buyers and Sellers Together

Traverse City, Michigan - The Coldwell Banker Schmidt Family of Companies today announced it will help bring home buyers and sellers together in Western and Northern Michigan by joining a bold national Coldwell Banker^® initiative that may help jump-start the U.S. real estate market. Starting on October 10, 2008, the nation's oldest residential real estate brand will kick-off its first-ever national "10-Day Sales Event" - during which participating home sellers from across the United States will reduce the listing prices of their homes by up to 10 percent. The Coldwell Banker 10-Day Sales Event will run nationally through October 19, 2008.

"We often find fall is a time when deals get done, as buyers move beyond the distractions of summer vacation and get serious about buying a home." says Mike Schmidt, President of the Coldwell Banker Schmidt Family of Companies. "The 10-Day Sales Event couldn't be more timely. Our participating home sellers feel that a home priced properly to sell will generate much more interest."

"There is an abundance of homes to choose from, mortgage rates are great, and home values have improved noticeably in the past year. We're seeing great deals being made on a daily basis" says Schmidt. "We're noticing other signs of market improvement, with more calls to our offices and more offers being written, and mortgage money is still very much available. Plus, we're hearing loud and clear from many of our sellers that they're comfortable with lowering their listing prices if it means getting offers and selling quickly."

Schmidt pointed out that participating sellers who listed their home with Coldwell Banker Schmidt will drop their listing price by at least five percent during the 10-Day Sales Event.

"We applaud home sellers in West Michigan for their participation," said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. "Nationally, we believe that the real estate market is nearing a crucial tipping point, yet our research and discussions with our brokers and sales associates show that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers. It's our hope that the Coldwell Banker 10-Day Sales Event will move buyers off the sidelines and into the market. We are embarking on this initiative - which has never been done before on a national basis - because we believe it is critical for Coldwell Banker, as an industry leader, to help serve the needs of those individuals listing homes with a Coldwell Banker broker and to help move the U.S. real estate market in the right direction.

"For many people, now is one of the smartest times to buy a home that I have seen in my 33 years in real estate," continued Gillespie. "Because of the higher inventory, buyers have more homes to choose from and they can take advantage of near historically low interest rates and affordability levels that are the best they have been in years. The recent housing and economic recovery act also may provide first-time homebuyers with the added incentive of a $7,500 tax credit."[1]

In a recent survey of 3,379 Coldwell Banker real estate professionals in markets across the United States, 56 percent said that listing prices in their market remain above where they need to be to attract qualified buyers. Additional findings from the survey include:

77 percent agreed that the majority of sellers in their market still have unrealistic expectations regarding the initial listing price for their homes
79 percent agreed that homes in their market that are priced appropriately are attracting more buyers and moving more quickly
76 percent feel that a 10 percent or less reduction in listing prices in their area is all it will take to help push these homes over the "tipping point" to a sale

"Our brokers and sales associates agreed that it will not take much movement to attract those buyers who have been watching and waiting," noted Gillespie. "Depending on the market, a price reduction of just 10 percent or less just may make the difference in both satisfying sellers and bringing buyers to the table."

Sellers participating in the 10-Day Sales Event will have added promotional power from the Coldwell Banker brand behind their listing. Those sellers' listings will be specially promoted through national and local radio, print and Web advertising. The brand's flagship Web site coldwellbanker.com will feature participating listings. Home sellers will have the option to maintain the reduced listing price for their properties following the 10-Day Sales Event.

More information on the 10-Day Sales Event is available at the Coldwell Banker national Web site www.coldwellbanker.com/event.

[1] Consult your attorney and tax preparer for terms, availability and eligibility and requirements.

The Coldwell Banker Schmidt Family of Companies is a fourth-generation, family-owned realty firm made up of three companies: Coldwell Banker Woodland Schmidt, serving the Western Lakeshore from Holland to Muskegon and beyond, Coldwell Banker AJS Schmidt serving the greater Grand Rapids area, and Coldwell Banker Schmidt Realtors serving Northwestern and Northern Michigan, including the UP. Named the #1 Coldwell Banker company in Michigan for residential sales in 2007 and number seven from among all Coldwell Banker companies internationally, The Coldwell Banker Schmidt Family of Companies was ranked #44 in the Realtor Magazine Top 100 for 2007. The company's website, cbgreatlakes.com, boasts thousands of listings across Michigan.

About Coldwell Banker^®

Since 1906, the Coldwell Banker^® organization has been a premier full-service real estate provider. In 2007, Franchise Times magazine's prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the eighth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,600 residential real estate offices and 110,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International^® division. It is a pioneer in consumer services with its Coldwell Banker Concierge^® Service Program and award-winning Web site, http://onlineoffice.cbgreatlakes.com/Local%20Settings/Temporary%20Internet%20Files/Content.IE5/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Low/Content.IE5/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/Temporary%20Internet%20Files/mtopalanchik/Local%20Settings/kreynolds.DOMAIN01/Local%20Settings/mtopalanchik/Local%20Settings/Local%20Settings/Temporary%20Internet%20Files/OLK186/www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker^® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

Get Ready for the Coldwell Banker 10 Day Sale!

Bill Martella — Tue, 09 Sep 2008 09:01:00 GMT

Announcing the 10-Day Sales Event!

Bringing more buyers and sellers together.

The country is on the cusp of a recovery, yet there still

remains a disconnect between buyers and sellers. Starting

October 10, 2008, Coldwell Banker® offices across the

U.S. will kick off the nationwide "10-Day Sales Event."

This type of promotion has already been successful in

Florida and New York, so now we're rolling it out nationally.

More details to come!

Gaylord Shopping is getting better!

Bill Martella — Tue, 09 Sep 2008 08:50:00 GMT

By Michael Jones, HT Staff Writer Tuesday, September 2, 2008 3:38 PM EDT

GAYLORD - Shoppers can expect to add Meijer to their list of local shopping choices sometime in April 2009.

Rockford Construction Company Inc. project superintendent Greg Masserang said last week construction of the 156,000-square-foot supercenter should be completed in February, with the Grand Rapids-based grocery chain opening the doors at its Gaylord store to shoppers within 60 days of that date.

"When we turn over the keys to Meijer everything, including landscaping, will be done and it's a matter of their getting the store shelves stocked and ready to open," said Masserang, whose Gaylord project is the fifth Meijer Inc. store he has supervised. Masserang said Meijer currently has nine stores under construction, with five, including the Gaylord location, in Michigan. Masserang said all of the new stores are under construction through the Rockford-based company.

As progress on the outside walls continues, Masserang said landscaping work and paving of the parking lots would be completed within the next 45 days. Work also continues on Meijer's gas station/convenience store which he said would open as soon as it was completed, likely a month or two before the opening of the main store.

Alpine-themed roofs at the store's two main entrances are under way and Masserang said the Alpine look should fit in well with the store once it opens. "I like the design of this store. It's the first prototype of the new stores Meijer will be building. The Alpine look here is a good fit with the community; which I have to say have been great to work with."

Masserang praised the cooperation of the local municipalities - specifically Gaylord and Bagley Township, in working with Meijer to get the project up and running and has been impressed with the local contractors working on the new store.

One year ago the city of Gaylord came to an agreement with Meijer to extend city utilities to the store located on 140-acres at the corner of M-32 and South Townline Road across from Kohl's, Old Navy and Office Max. After the agreement for water and sewer for the new store was completed, Gaylord and Bagley Township entered into a Public Act (PA) 425 agreement in September 2007.

Officials with Meijer have said they anticipate employing between 300 and 450 workers at the store. Total cost of the development has been set at around $15 million.