Quick notes from the MI Broker Summit

Market Trends and Forecast

Lawernce Yun, Ph D Chief Economist

MI Real Estate prices are declining but not as fast as they appreciated.  Homes sales are rising bringing down the inventory and stabalizing prices.  The market is expected to start correcting now and finish in 2009.

Top 2 reasons for foreclosure:

•1.      Loss of jobs (Michigan has loss jobs for 7 straight years)

•2.      Home prices declining, people just walking away when the price declines

Now that homes are selling, prices will begin to stabilize.  Nationally home prices in 2007 were the same as 2002.

Jumbo loan rate sh/ be coming down soon.  They can't of administration issue.  The software is the issue.  This should be solved April 09.

New Home Construction is slowed.  That's good.  This will assist to stabilize current inventory prices.

Homeowners benefit from Fed rate cuts, new home purchasers don't because the cut causes mortgage rates to go up.

People can buy; they won't because of the fear factor caused by media.

In Michigan, Unions are assisting in the economy struggle.  Unions help existing jobs and scare away new potential employment opportunities.