The higher income level for the older population in Washtenaw County should insulate the area from reduced spending levels usually associated with this demographic. For the sake of local businesses that have already taken a hit from the departure of Pfizer and the loss of numerous manufacturing jobs in the region, this should be welcome news. Ann Arbor Real Estate should also benefit as people are more likely to able to continue to afford their homes during the first stages of retirement. In Washtenaw 45% of people over 65 have incomes of at least $50,000 per year while statewide the percentage with this level or higher is only 25%. A key factor in the recovery of housing is putting an end to current scenario of home sellers taking whatever they can get out of desperation or intense fear. Even in the absence of foreclosures and short sales, downward pressure on values continues to originate in the willingness to "sell at any cost". Add in the effects of foreclosures and short sales, the result is a reduction in average residential sale price of 21% for the first five months of '09 as compared to '08. The latest issue Realtors in the area are facing is the fact that even after a willing buyer makes a reasonable offer, there is a chance that the property will not appraise for the sales price or higher. This challenge is yet another reason why it is important that people entering retirement are able to hold on to their properties until Ann Arbor Real Estate takes a turn for the better. David Wallner |
