|
Leveling Property Values Creating Problems in Southeast Michigan
The summer months always naturally bring excitement to the housing market in Michigan – especially in our area. This excitement usually leads to increased home sales, but is that true for this summer? Let’s examine.
It has become evident that the housing market has cooled considerably in southeast Michigan, due to a leveling off of property values. This means deals are increasingly more difficult to finalize. This is in large part due to Michigan's economy, primarily in southeast Michigan, where we are seeing a large number of homes, in a broad value range, go into foreclosure or the homes are lost to foreclosure.
When you combine an extensive "building boom" in the last 10 years with poor economic conditions you are left with the problem of excessive inventory. As a result of these two forces coming together, you experience a buyers market. Because a number of current homeowners are no longer able to support their current homes due to divorce, loss of overtime, or spousal income, they are forced to compete with sellers in similar situations or with new homes that are hitting the market.
As you can see, you have many negative factors placing pressure on home values. Individuals and families are forced to price their homes to move. When that begins to happen, it becomes major problem as more and more people feel the pressure to lower the asking price for their respective homes. Furthermore, the number of bank held properties has increased, which means the number of these listed properties has also increased.
All of these factors, and more, are putting current homeowners seeking to refinance in a difficult situation. A number are seeing their homes appraise at or below what they paid for the property several years ago.
As such, debt consolidation or the ability to drop coverage of Private Mortgage Insurance has been troublesome. We find more and more clients actually "upside down" at times, meaning they owe more than their home is worth. As variable rates continue to rise, home equity lines of credit and revolving debt become more strenuous on the consumer. These variables create trying times for Michigan homeowners.
To discuss the current mortgage and real estate market with one of our professional advisers, please give us a call at 888-226-7730, or visit us online at www.ciafg.com.
Featured Service
 This month's featured service is:
Employee Benefits Services
As a business owner, your most valued assets are the key personnel you employ. Without them, it is difficult to grow your business and keep your customers happy with the services or products you provide. To keep your business progressing it is imperative that you provide your employees with a menu of benefits that are designed to retain their talents and keep them in the fold.
|
|
Staffer Spotlight
Get to know one of the members of the CIA Financial Group Team each month in our 'Staffer Spotlight'. This month, we would like to introduce you to Ramzey Samhat – Licensed Account Representative.
Q.What is your position at CIA Financial Group?
A.
I am a Licensed Account Representative, in the Employee Benefits department
Q. How long have you been with CIA Financial Group?
A. I have been here almost one year now.
Q. What is the best part of your job?
A. Meeting with business owners in many different industries and learning about what they do.
Q. What are your professional goals?
A. My goal is to help our clients reduce the increasing costs of group health insurance by providing them with creative and well research solutions. I like to help business owners find a way that they can continue to help their employees.
Q. Why did you choose this career?
A. I was drawn to CIA specifically because of the platform they provide. CIA encourages personal and professional growth and success.
Q. What important trends do you see in the industry?
A. I see rapidly rising costs of health care and insurance. I feel that is more important today for consumers of health care to become more educated and involved in the process of purchasing services and medication. If individuals shopped for a doctor the way they shop for a car or TV, we as consumers would have more control over the cost of medical services.
Q. Why did you choose to work for CIA Financial Group?
A. I decided to come to CIA because of Sam Crudo. I respect his work ethic and his honesty. He is a straight forward and down to earth person with great character.
Q. What are your hobbies or interests outside of work?
A. Travel, sports, cooking, and music.
Q. Where are you from?
A. Royal Oak, MI
Q. What is your favorite book/movie?
A. On the Road – by Jack Kerouac
|
