Thursday, January 10, 2008, the Bay County Association of Realtors published the sales totals for the calendar year 2007 for the local market. The surprising figures for residential sales totaled 1415 properties with a volume of $131,249,073. This equates to an average sales price of $92,756.  The 1415 properties sold beat the previous second-best mark achieved in 2004 and is only outranked by the 1437 units sold in 2005.

Years of statistics had continuously shown the Bay County  Realtor Association registering 1000 to 1200 residential sales during the years 1992 through 1999. The average home sales price jumped from $57,975 $92,392 during that time. The new millenium started with a bang and 1221 homes were sold for an average sales price of $98,502. Sales and average home prices (except for 2002) increased every year during the next 6 years to where 2005 ended with 1437 homes and an average price of $106,789. That marked a tremendous cycle of home appreciation and activity that was 15 years in the making, as long as records were published by the BCRA.

Knowing that real estate is a cyclical business, not unlike the stock market, wasn’t it logical to assume that there would be a correction period?   The excesses of the mortgage industry is the leading reason for the collapse of the housing industry from the fall of 2005, but why would anyone assume that there would not have been some correction soon anyway?  Without some dips, there would not be opportunities for buyers. In fact, with continuous sellers’ markets, buyers would eventually be priced out and would quit buying anyway. This cyclical chain of events happens in the stock market on a regular basis throughout every year and across sectors.

The forecast for 2008 is not a rosy one. Goldman Sachs just has said that a nationwide recession will occur in the second and third quarters of 2008. The National Association of Realtors has said (January 8, 200 that existing home sales are expected to hold fairly steady in the year and continue to improve in 2009. Indeed, after the March round of resetting of adjustable rate mortgages (1.4 million are scheduled totalling 110 billion dollars) light should be seen at the end of the tunnel. 

In the past, the media has contributed to sending the country into a recession. Remember when the senior George Bush became President, the country listened to the negativity and the self fulfilling prophecy became reality.  The nation talked themselves into the downturn.  History may repeat itself, but wouldn’t it be nice if we could look at some positive signs and limit the pain to what has already been experienced?  Bay County’s home prices are a bargain. The quality of life is excellent. The family atmosphere, throughout-the-year events, places for worship, exposure to the arts, school systems, medical care cannot be beat for a town this size.  Life’s “ups and downs” present opportunities and what Bay County has to offer should not be missed.

The latest facts regarding the current housing slowdown focuses on the resetting of adjustable rate mortgages or ARMs that are scheduled to occur this year. It is estimated that $1 trillion dollars in mortages will be affected. The critical factor in this resetting is that buyers during the last 3-5 years bought ARMs and put 5% or less down at low “teaser” rates. When prices decrease 5% or more, these new homeowners owe more than the property is worth. When ARMs reset after the teaser rates expire, the monthly payment can go up several hundred dollars. Many times the property owner will have difficulty fitting this into their budget. Foreclosures rise due to the problems encountered by these homeowners. If markets get too many foreclosed properties, it depresses prices further and compounds the problem.
There is good news in Bay City, however. The February survey by the National Association of Homebuilders showed that Bay City is the third most affordable housing community in the entire United States. Bay City is second only to Springfield, Ohio and Davenport, Iowa. While I have not been to either of those cities, I would find it hard to believe that those towns have the amenities that Bay City has. Part of the solution to the foreclosure problem is afforability and home equity. Affordability is one of the most desired relocation features of buyers and companies with workers. It is becoming increasingly difficult to find affordable homes in various southern, eastern and western states. The road to personal wealth starts with home ownership and that starts with being able to buy a home and not spend beyond one’s means.
Bay County has much to offer, from quality of life, beautiful surroundings, ideal location and affordable home prices for anyone from first-time homebuyers to retirees. Contact a Hollister representative for more information, a relocation packet and to get a start on a new life in one of the nation’s most desirable and affordable communities.

“Bay County’s most trusted name in real estate” is more than just a slogan, it is our way of doing business. For over 25 years, Hollister Realtors has taken care of countless families and clients who have come back to us time and again because of the professional job that we do. Many have become friends and we treat them that way. In fact, maybe our motto should be, “We treat our clients the way that we would like to be treated.” One thing is for sure, if you buy or list using a Hollister agent, you will get the best service and we will aim to give you a stressfree transaction based on ethical principles according to the Realtor Code of Ethics. We have become a leader in Bay County, through the direction of founder, Gordy Hollister and have continued that effort guided by current owner, Nancy Glaza.
Hollister Realtors is also dedicated to providing our clients and future customers with the latest technology in the field of real estate. Marketing is crucial to success in this competitive business and Hollister has invested in this brand new website and is constantly looking for ways to feature and promote our clients homes. At Hollister we welcome the opportunity to talk with you and answer your questions, including “What can Hollister do for me?”.
So, thank you for checking in with Hollister and viewing this website. Come back often to this blog page and get the latest views and information on national and local real estate issues. It will be time well spent and we hope that you will find it entertaining as well.