How's your 2013 Market?

Question

According to the latest report home sales down here by 6% from last year according to local news anyway.

Terry Portier · Answer

I was talking to a title company yesterday told her about the news on home sales dropping 6% from last year and asked if she had seen that in her office. She said she has been holding steady and that “we here in the Midwest are on the bottom of food chain”. Not sure what food chain she was referring to but, I have heard that rational from realtors last year and nothing changed. I’m not sure what revelation they are waiting for but, just goes to show how the average worker in the RE industry has no clue what they are talking about with markets doing well a few hours away in the “Midwest”.

This morning I seen that in our state of KS 75% of children are on government funded lunch programs since their families meet the poverty level income criteria. Also, I know the state has given business tax breaks like no state tax on non-w2 income to get more business to incorporate here.

So I am thinking it is the poverty level market that would be a nice target to invest in, more less a neighborhood, or investment type, people need a roof over their heads regardless.

Bill Gulley Sorry to put you on the spot with my silly questions, I realize now alot depends on the market I am struggling to figure out being here :) Maybe I should go to the guru and see if they even know any of this or are just passing through town trying to sell bunch of bs that don't work? Hmmmm, tempting :)

Terry Portier · Answer

Bill Gulley

Hey Bill I hope this note finds you well....We are neighbors 3 hrs away I see with different markets. What would be your approach in yours and mine? A formula for success? From a GURU!!

Funny thing I just seen an ad on TV for some REI guru on "how to flip houses using others people money" coming here and would take your advice any day of the week than his. I'd go if you were the speaker :)

FYI: I have a successful construction company(rennovations, storm damage restorations)  here just looking for ways to integrate REI into this market and yours when it gets there. I think I am going to start studying for my RE license and get it so I can get into the MLS and see what is going, not be dependent on agents, get more familiar with my market. Possibly sell some of my own builds and rehabs. Looking at building energy efficent homes better than any builder, or rehab and flip maybe hold not sure about the landlord junk yet maybe as a last resort if it makes sense I got good cash flow.

John Knappmann · Answer

Rob K. , you beat me to it!

Bill Gulley · Answer

I assure you, there won't be anything specific to our market and they will be passing through. If you go, I suggest you leave your check book and credit cards at home. :)

Bill Gulley · Answer

Hi Terry, yes, close but no cigar as they say. I always think of our area as being much larger than the city limits, it goes out in various directions as to the time required to drive to work. I can imagine driving an hour to and from work but many do it.

Guru coming to town....they've been here before. I might drive by just to see how many fish get caught, getting reeled in, if I were a recruiter for a real estate office I'd probably go to redirect their efforts and interests, but I'm not. :)

Patrick Snyder · Answer

Lansing, MI is up, although I don't have exact numbers.  The best deals get scooped up much quicker, rehabs don't take nearly as long to get sold, and contractors are charging more for their services.  All good news for anyone trying to sell

Rob K. · Answer

Our market has been on fire this past year.

Metro Detroit up 42%

Bill Gulley · Answer

Terry, local news reported here a 10% increase over 2011, 6% over last year, an accelerated increase in residential.

We have a very strong Board of Realtors here, two very large brokerages and several "large" ones with dozens of small brokerages. There was a crusade by brokers to step up local prices that begun about 95 and has stayed strong since. Brokerages that control much of the residential market can and do influence where prices are set in reality. Prices are accepted as reflected in the average listing time on the market and we do have a very stable local economy that is well diversified. The bubble really didn't do much here, there were certainly some crashes and slowing sales, stagenet prices but there was no huge drop. :)