Archive for the ‘White Lake Michigan’ Category

How Much Does The Interest Rate Really Affect Your Buying Power?

I am going through old listings that couldn’t sell at the owner’s desired price and through files of home owners who didn’t try to sell after getting a market analysis (CMA) for their home because of the value at that time. The good news for those homeowners is that prices are coming up in the Clarkston area and have been for the past couple years. But for buyers- if you look at your payment instead of price- prices are still very low.

As an example I just pulled up a listing I had in 2007 that was asking $400,000. At that time the interest rate for mortgages was at an average of 6.34%. When I checked the Freddie Mac web site I found the average interest rate last month was 3.92%.

What does this mean from the buyer perspective? If you would have bought that particular house for $305,000 in 2007 your payment (principle and interest) would be the same as if you were to pay $400,000 today. That’s a hundred thousand dollars worth of buying power just in the difference in the interest rate.

But it gets better!!! The property taxes on that house have dropped from just over $6k/year to just over $4600/year. That’s $116/month savings in your house payment.

Interest rates are not going to stay this low forever. Home prices are on the rise– not skyrocketing, but steadily rising. If you have been holding off buying waiting for the market to hit bottom I think we may be there- especially when you factor in the mortgage interest rate and property taxes. AND the cherry on top is the fact that your property taxes will be capped to 5% or the rate of inflation as long as the house is your primary residence. So for the example above it will take quite a while before property taxes are back at 2007 amounts.

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Buing a Foreclosure or Short Sale

Jackie Hawley
ReMax Encore, Clarkston

Cell: (248) 736-6407


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Pontiac Lake Lakefront Real Estate White Lake and Waterford MI

Pontiac Lake is a 585 acre all sports lake located in White Lake Township and Waterford Township Michigan. Pontiac Lake is part of the Huron River chain that eventually dumps into Lake Erie. For the fisherman Pontiac Lake was stocked in the 80’s and 90’s through 2002 with  black crappie, bluegill, channel catfish, largemouth bass, northern pike, walleye and yellow perch.

For the boater/jet skier Pontiac Lake is one of the larger all sports lakes in Oakland County MI and host to Quake on the Lake, a inboard hydroplane race that has been held annually on Pontiac Lake. This year’s race will be held July 16 and 17, 2011 and offers live entertainment, classic cars, and carnival. Approximately 35,000 people attend annually.

Pontiac Lake Property Owners Association

Pontiac Lake is surrounded on 3 sides by Pontiac Lake Recreation Area– over 3700 acres of state land which offers horseback riding, hunting, snowmobiling, shooting/archery range, boat access and beach on Pontiac Lake and much more. Even though the Pontiac Lake area offers almost everything the outdoors person could want, it is still only minutes from M-59, shopping, airport, restaurants and much more.

Real estate sales on Pontiac Lake have gone through rough times just like the rest of Michigan. In 2004 sales of lakefront homes on Pontiac ranged from $179,900-$288,000 (as reported Realcomp II MLS). In 2010 sales ranged from $57,00-$230,000 with only 2 sales over $200,000. So far in 2011 (March 11) sale prices for lakefront homes have ranged from $88,900-$180,000. There is currently 1 sale pending on Pontiac Lake- a bank owned home with an asking price of $199,900 and there are currently 4 active listings: 1 short sale asking $64,900 and 3 “normal” sales with asking prices of $149,000, $207,900 and $272,500.

Sale prices in 2010 didn’t seem to be much different than in 2009 which is consistent with other indicators of a stabilizing real estate market. As the foreclosure sales decrease, prices should start to increase. But buying a home on all sports Pontiac Lake isn’t just an investment decision; it’s a lifestyle decision.

If you are interested in buying or selling a home on all sports Pontiac Lake, please don’t hesitate to contact me.

For Non-Distressed Sellers

Buying a Short Sale- They’re Not For Everybody

Lakefront Real Estate

Jackie Hawley
cell: (248)736-6407

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