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Most Washtenaw County Realtors believe that the area's real estate picture is not as dire as some may think. While the state's economy staggers, the area's buyer's market is boosted by low interest rates and a wide variety of housing options for first time buyers as well as buyers looking to upgrade.
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By now, it would be difficult to find a Washtenaw County resident who hasn't heard about the real estate horror stories across the state.
Homes sitting on the market for years, their prices halved. Sellers losing thousands of dollars in their investments. Realtors taking a part-time job, or two, to make ends meet -- if they even stick with the business. Jittery buyers helping home values slip through the floorboards.
Real estate agents across Washtenaw County won't disagree that there's some truth to this picture -- that the last several months have seen the blows to Michigan's economy stagger the region's real estate market as well.
"2006 was, by far, the worst year I've had since 1981," said Jim Mann of Mann Real Estate in Manchester. "And that year, interest rates were at 15, 17 percent, so there was good reason for it. But, right now, rates are low."
Washtenaw County's Realtors disagree that the county's real estate picture is as dire as some sources or the occasional rumor have portrayed it.
"It's not anywhere near as bad as what people have been hearing or reading," said Barb Lunarde of Real Estate One in Dexter. "This was the best February this office has had in many, many years. It has kept us optimistic."
Though not quite a consensus, the feeling of most of Washtenaw's Realtors seems to be that despite economic setbacks like the recent Pfizer shutdown, the worst is over — that the market already has hit rock-bottom and is already moving in the right direction.
"It's definitely better than it has been. It's a warming market," said Barbara Gaines of the Milan Real Estate One office. "We're seeing more action, bringing more deals to close."
Julie Picknell of Reinhart Realtors in Saline believes that with some of the "emotional paralysis" from the torrent of negative market news in recent months subsiding, the real estate market is ready to pick back up.
"We're seeing some positive movement," she said. "People are still buying homes."
Some of the available numbers would seem to support the agents' natural optimism. According to data from the Ann Arbor Area Board of Realtors, January home sales in Washtenaw County were their highest in three years and sales have continued to show annual increase from January through March, from 211 Washtenaw County sales to 274.
However, that growth hasn't been as sharp as it was in 2006, and even that good news for home sellers is offset by the fact that AAABOR data shows that the average list price is at its lowest point of the past four years.
According to Gaines, though, those prices help explain why she feels a continued rise in the market remains likely.
"Buyers are realizing that prices can't go any lower than they are right now," she said. "There's no point in waiting any longer. It's not going to get much better than this."
Mann reported that his business, too, has seen a slight uptick in activity, attributing it in part to the passing of some of the economic panic of the past year.
age of homes sold or increase home value.
Gaines said the large number of homes available has in some cases led to buyers proffering "ridiculous offers. (Some buyers) are trying to walk off with a house for next to nothing."
Sellers' frustrations have reached the point that multiple area homeowners with properties either on the market or recently sold or taken off declined to comment on their experiences for this story.
On the brighter side, Lunarde also stated firmly that even in the midst of the "glut," if homeowners prepared and presented their properties properly, their odds of seeing their homes sell in a reasonable time frame remains high.
"There is still buyer activity," she said. "What (the high number of available homes) translates into is that homes must be competitively priced and in great condition. If you have those two things going for you, you'll have a good chance of getting your home sold."
Picknell echoed those comments, citing that properties where owners had done their homework had continued to sell while those who didn't face an uphill climb in this market.
"The olive (colored) oven in the kitchen isn't going to cut it anymore," she said. "Buyers are less forgiving. If the home has dated curtains, stains on the carpet, or the walls need painting, those problems have to be fixed, before it even hits the market. You don't want to mess around."
One advantage area Realtors have is the ability not only to sell a buyer on an individual home, but on the entire community. In Washtenaw County, this means touting first the county's well-respected school systems (Saline, Milan, Dexter, Chelsea and Manchester all have high schools built within the last few years) and the tight-knit nature of the communities.
Mann said that while the addition of new regional industries such as Pierce Fasteners likely would help continue the positive signs from early 2007, the small-town atmosphere of Manchester and "personal attention" available in the town's smaller school district mean that even in the toughest of times market-wise, some Manchester homes will continue to sell.
"We don't have the bubbles like in California or Florida, where it drops up and down like crazy," he said. "We're a nice little bedroom community for Ann Arbor. We don't have a stoplight, and they like that. It's our little corner of the county."
The relationship of Saline to Ann Arbor also helps stabilize the Saline market, Picknell said, adding that Michigan's loss of manufacturing jobs might not have the impact in the Saline market some might think.
"We're not a suburb of Detroit," she said. "We're tied to Ann Arbor. We lost Pfizer, but Google is still coming. There's still U of M. We've got developments like the Oaks coming in (on US-12). Life keeps moving. This is still one of the best places you can live. We're going to continue selling homes in Saline."
Gaines said that in Milan, the resolution of the city's recent financial crisis means that optimism in the community is on the rise again, a good sign for Milan real estate.
"They've found a way to work things out. People feel that this is a good community," she said. "There's a general attitude that we're OK. We're going to make things work."
Like the other Washtenaw Realtors, Lunarde cited the Dexter school system as one of her market's best selling points. Even with that advantage and even with the relative stability of the Dexter market, however, she admitted that recent months have not been kind to Realtors, and that several she knows have either left the business or taken second jobs. But, she added, many also have continued to do well in the current climate.
"The agents that are really committed to this business, that are digging in and doing the work they have to do, they're fine," she said.
Kim Roberts, an associate broker with Keller-Williams Realty in Dexter, said that her agency recently added four new agents.
"Seeing something like that is a good thing," she said.
As many benefits as the region offers, whether new agents in Dexter or anywhere across Washtenaw succeed will be determined, in many ways, by the market, the economy, and if they can convince buyers that what positives have been seen so far in 2007 will be sustained.
It's part of the realty business to be optimistic about those factors, and to believe that optimism in Washtenaw County will not prove to be unfounded.
"Let's hope so," Gaines said. "What I see is a good summer, a good year. And I think next year could be even better."
Jerry Hinnen is a reporter for Heritage Newspapers. He can be reached at 429-7380 or jhinnen@heritage.com.
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