National Impact
The National Association of REALTORS® has two surveys that measure the share of first-time home buyers in the market. The Home Buyer and Seller Survey is a robust survey of about 10,000 buyers conducted annually. The 2009 survey will be available in November, but preliminary data is available. In October 2008, NAR expanded a survey of REALTOR® members, the REALTORS® Confidence Index, to ask about first-time sales. Both the REALTORS® Confidence Index and the Home Buyer and Seller survey indicate a 6 - 6.5 percent increase in the share of first-time home buyers in the market when the six months following the tax credit enactment is compared with the six months prior. The REALTORS® Confidence Index shows first-time sales increasing from 33 to 39 percent of sales. Preliminary data from the 2009 Home Buyer and Seller survey shows first-time sales increasing from 45.1 to 51.5 percent of sales. The Home Buyer and Seller survey has shown that first-time buyer sales are consistently near the 40 percent mark through the years. However, long-term trends are not always the best guide. Given that tight credit markets and poor job conditions have dominated markets this year, one could expect that the share of first-time buyers would have been much lower than 40 percent without the help of the tax credit. Seasonally adjusted home sales were 4.79 million in the six months prior to the stimulus package. By contrast, they are forecast to be 4.97 million in 2009. Multiplying the change in market share by the annual sales rate and forecast annual sales, we see an extra 357,000 to 398,000 annual first-time sales in 2009. Because the tax credit is currently legislated to apply only to the first 11 months of the year, the expected increase in sales as a result of the tax credit is 327,000 to 365,000. This increase is greater than was anticipated when projections were made when the credit was adopted in early 2009 (see below).
Michigan Impact
In Michigan, the home buyer tax credit has brought in an additional 20,000 buyers into the market and 75,400 first-time buyers will be able to take advantage of the tax credit. Detailed, state-by-state information is not available on first-time buyers, but using national information from the 2009 Home Buyer and Seller Survey available in preliminary format, we can estimate the impact in a state. According to NAR, Michigan existing home sales in the second half of 2008 were 151,200 at a seasonally adjusted annual rate. In the first half of 2009 they were 163,200. If sales continue this trajectory, as they are expected to do nationally, they could reach 173,600 for the year in Michigan in 2009. If the share of first time home buyers in the market is similar to the national share, first time buyers will have purchased 60,480 homes at a seasonally adjusted annual rate in the second half of 2008 and will purchase 76,704 for the year 2009. Because the tax credit is only in effect for 11 months out of the year, the estimated impact of the credit is an increase of 20,000 first-time buyers. 75,400 first-time buyers in the state of Michigan are expected to be able to take advantage of the credit.
From National Association of REALTORS® Report
Last week the 2009 MAR Convention & Expo was held at the Grand Traverse Resort & Spa. Between knowledge sessions, networking and meeting with industry leaders in the expo, over 700 MAR members came together as an industry to better their business.
The Convention kicked off with the Grand Assembly and the announcement of REALTOR® of the Year, Scott Griffith, from the Livingston County Association of REALTORS®. Following the award, inspirational Drum Cafe turned up the energy with a captivating and interactive performance with drum sticks, bongos and a team building experience. The first night ended with a Welcome Reception in the Expo, where attendees mingled with industry companies, and took part in RPAC fundraising events, such as the new Sweet 16 Pop a Shot Tournament, and the RPAC Silent Auction. RPAC events at Convention raised over $10,000. Thank you to all of those who contributed to the RPAC fundraising success.
Thursday kicked off with the announcement of the REALTOR® Active in Politics, Sheri Sutherby Fricke from the Down River Association of REALTORS®. Followed by a day of knowledge sessions, topics ranged from social media to leadership, to tech tools and keeping current and sane! The day concluded with the REALTOR® Royale, where attendees enjoyed drinks, dancing, bon fire, and fun. Also held at the Royale, the conclusion of the Sweet 16 Pop a Shot Tournament, in which the winner Dan Borgerding of the Flint Association of REALTORS® won a diamond tennis bracelet.
Closing Keynote, Nancy Friedman was a hit among attendees, and ended the Convention with laughs and customer service insight. For those of you who missed the fun, knowledge and networking, mark your calendars for next years event, September 29 – October 1, 2010 at the Soaring Eagle Casino & Resort in Mt. Pleasant!
If you attended Convention and missed a class, or did not attend, and want to hear from nationally renowned speakers, on topics that matter to your business, purchase the Live Learning Center today. For only $99, you can receive all sessions approved, in streaming audio synchronized with power point slides to your computer or MP3 player. Visit the
MAR Convention Web site to learn more.
The Department of Labor and Economic Growth (DELEG) encourages all licensees to pay their renewal fees BEFORE the October 31 deadline regardless of whether they have met their CE requirements. Late license renewal is allowed during the 60 days following Oct. 31 and that time can be used to attain any needed CE hours. In other words, if you’re planning to renew your license, but still need CE hours go ahead and renew online with your payment any time this month. Keep in mind that if you have not submitted your renewal and/or completed your CE by October 31st you
cannot operate or practice real estate until those requirements are met and your employing broker receives your new license and pocket card - per rule 339.22213 of the
Michigan Administrative Rules.
If you’re looking for CE opportunities, you have a number of affordable options available. Check with your local association about upcoming courses. Review the online courses available through MAR at
Mirealtors.com. Employing brokers can verify your agents have met the requirement by going to
www.michigan.gov/realestate and accessing “Check CE Credits” on the site.
The Midwest CRB Chapter and Chapter President John Kmiecik cordially invite real estate brokers and managers to participate in an interactive webinar:
Social Media: Driving Dollars to Your Bottom Line!, on Thursday, October 15th, 3PM Eastern Time.
The webinar will feature Jonathan Nicholas, Founder/Virtual CEO for The Company CEO, Inc. Jonathan is the immediate past President of the CRB Council where he also holds the Master Instructor status. In addition to his speaking and consulting activities, he is also the President of the Recruiting Network and its online publication,
The Recruiting Pipeline. The Recruiting Network brings together a veritable who’s who from within the real estate industry. Members of the network include many of the industry’s most successful recruiters, profitable managers and accomplished CEOs.
The program will run for 60 minutes, and will cover:
· The steps of the “social media process,”
· How to engage customers with social media content,
· Driving traffic to your website through social media,
· and how to make money, not just waste time!
Participation in the webinar is free; however, registration is required. For further information, please call (219) 916-4821 email
mary@crbmidwest.org or visit our website,
http://www.crbmidwest.org/.
With the help of McClelland & Anderson, we are taking the most commonly asked questions from our legal hotline and putting them in E-news. We will be featuring a different question each issue.
QUESTION: There is a broker that belongs to our board who I find has a very abrasive personality. There are a number of fellow brokers that have the same complaint. We wish to join together and not do business with this broker because we feel his abrasive personality is very unprofessional and reflects poorly on the rest of us. Can we do this?
ANSWER: ABSOLUTELY NOT. When competitors agree not to do business with someone, it is called a “group boycott.” Group boycotts violate antitrust laws.
At MAR’s 2009 Convention & Expo at the Grand Traverse Resort & Spa, MAR bestowed its two most prestigious honors. The coveted REALTOR® of the Year was awarded to Scott Griffith of the Livingston County Association of REALTORS® and the REALTOR® Active in Politics was awarded to Sheri Sutherby-Fricke of the Down River Association of REALTORS®.
Scott is a third generation REALTOR® and Co-Owner/Partner with his sister Carol of ERA Griffith Realty. Along with being a past president of MAR, Scott is actively involved at the state, local and national REALTOR® level. He is also featured as a speaker at the 2009 NAR Convention in San Diego.
Sheri has been an active member for over 20 years, and was MAR’s 2005 REALTOR® of the Year winner. Along with being a member of the Wyandotte City of Council, Sheri is highly active in RPAC and public policy committees at the state and local level.
Please join MAR in congratulating both Scott and Sheri for their achievements.
Stay closer to the people who matter most to you with T-Mobile. Whether you need a new calling plan to stay in touch with your family or a new handheld to connect to your office, T-Mobile has something just for you.
Great News! You are now eligible for corporate benefits when activating new service through the T-Mobile Premiere Web site or by calling 1.866.464.8662 and identifying yourself as a Michigan Association of REALTORS® member.
Don't forget that you may now transfer your current number to T-Mobile when signing up for T-Mobile service.
Here are some benefits available for Michigan Association of REALTORS® members from T-Mobile:
A 10% discount off your monthly recurring fee based on company-wide use of T-Mobile products & services*
Equipment discounts on new activations**
A special 30-day return policy on new activations
Free shipping on 2-day service
Free activation on all orders†
Call 1.866.464.8662 today!
*Rate plan prices listed here do not reflect the discounted fee. Discounts are applied on your monthly bill based on company-wide use the prior month.
**Does not apply to accessories
†Depending on credit approval.