In the first 6 months of 2009 there were 219 single family homes sold in the five Grosse Pointes. In a typical year, approximately 60% of the annual sales occur in the first 6 months. In a surprising and welcome reversal, sales for the second half of 2009 have rebounded very nicely! Through Ocober 26 (only a little more than half way through the second half) we have already sold 256 homes. What changed? In my opinion, several things are working together.
First and foremost, the auto companies appear to be in a better position. Ford has show significantly improved numbers while GM and Chrysler filed and emerged from bankruptcy in a relatively smooth and efficient manner. Most auto company and supplier employees now feel much more secure than they did just a few months ago.
Second, the $8,000 Home Owner Stimulus Tax Credit has helped spur sales to first time buyers. This has then allowed the sellers of many of those smaller homes to purchase "move up" homes.
Third, prices have fallen far enough that many home buyers are seeing values that they never expected to see again. In many cases, we are selling homes at prices that they sold for back in the early 1990s.
Lastly, with all of the gloom and doom in the news for the last several years, even those potential homebuyers that have good jobs and secure incomes have been sitting on the sidelines, thus creating a fair amount of pent up demand. As the news improves, many of these buyers are finally getting back in the game.