PHOTOS BY DANIEL LI PPITT

Your
Biggest
Purchase

Home buying has changed in the last
decade, and so have the hot markets.

ALAN ABRAMS SPECIAL TO THE JEWISH NEWS

Susan Weinstock shows a house to Robin and Matthew Sternberg.

If

ou've heard it said before: Buying a home is the
single biggest purchase you will ever make.
In that framework, Sandy Norman of the
Century 21 Town & Country Brokerage in
downtown Birmingham has a unique view of
how the local real estate business has changed
in the last two years.
"We have a lack of inventory in the marketplace, es-
pecially under $250,000," lamented Mr. Norman. "Prices
have gone up, and people have decided to hang on to their
houses and put money into them, in the way of a master
bedroom, master bath suites, family room additions, three-
car garages, and other improvements.
"It is sort of a backlash out of the refinance era of 1993

•

and 1994, when the interest rates stayed at 7 percent for
almost two solid years. Everybody refinanced, and the
bulk of that market refinanced on 15-year notes and got
as low as 6.62 and 6.75 percent.
"So consequently, people grabbed on to these 30-year
lows in terms of interest rates, refinanced 30-year notes
into 15-year notes, because basically, they'd get a .5 per-
cent better loan on a refinance if they went down from 30
to 15 years.
"The tax write-offs were so strong for the first four or
five years of a 15-year note," said Mr. Norman, "and peo-
ple wound up with longterm security that they had bought,
and they could see the light at the end of the tunnel. So I
think we found ourselves in a situation where people want-

ed to stop moving around, and were now willing to spend
$50,000 to $75,000 in improving what they had, as op-
posed to deciding to take the next notch up.
"That's impacted the market not only in not having
enough inventory, but it has caused the market to be very
fast in that $250,000-and-under range.
"I don't think it has impacted the market for $400,000
and up as much. There's still inventory in that higher
range, which is generally the third-time homebuyer range
in the Oakland County area," said Norman.
In his first career, Norman spent 16 years as an edu-
cator, primarily in Detroit and Waterford, and he holds
five college degrees, including his doctorate, in education.
But housing inventory shortages can even be found in
the higher- end market. Some in-town, walk-to-
downtown Birmingham homes are priced above
$500,000. That's still a strong interest market with
not enough supply to meet the demand.
Another hot area, according to Norman, is the
City of Bloomfield Hills, around the Cranbrook
Institution area, "or what we refer to as the
Rudgate area. Those areas are still moving fast
on the higher end.
"And certain prime lakefront areas, whether
they are Wing Lake, Pine Lake or Orchard Lake,
will still be in a position where higher-end stuff
can still move fast Wit is priced fairly," he said.
But there is a downside to that upscale picture
as well. 'We have a lot of people who live in high-
end homes who expected to gain a certain amount
of appreciation the last five, six, seven years," he
said, that haven't done as well as lakefront homes,
homes in Bloomfield Hills or downtown Birming-
ham.
"Large homes in subdivisions that are comprised
of 20 to 50 homes in the $700,000-900,000 range
haven't fared as well as appreciation in the low
end market and in specific marketplaces like the
three above. Wherever there's a limited amount
of supply and a steady demand, it's just a basic
economic principal," said Norman.
But that hasn't affected Norman's business. He
sold close to $20 million worth of homes last year
and estimates he has been the No.2 or No. 3 real
estate sales person in Oakland
Sandy Norman County for 10 years.
says the real
Last year, his gross closed corn-
estate market
missions topped the $500,000 mark.

is booming.

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• BIGGEST PURCHASE page 61