Metro Detroit Real Estate Update

Southeastern Michigan real estate market update

includes Wayne County Real estate, Oakland County Real estate, Livingston County Real estate, Washtenaw County Real estate

What’s happening now.  Home prices in the last few years have fallen from 10 -35% off their highs depending on the city and area.  It is a very tough time to sell.  Some homes are sitting on the market up to a year and a half.  Southeastern Michigan is a buyer’s market.  Many buyers are looking for up to date homes, ready to move into homes at a low price.  They know they can put in a low ball offer.  Wouldn’t you do the same thing?  If the offer is not taken by one home owner they are just going down the street and putting in the same kind of offer.  Why would they pay $20,000 -$50,000 more for a similar house when they can buy another one?   Buyers are not concerned with a “great neighborhood” as much as what are they getting for the money.   They are shopping the whole city, not just one neighborhood.   So price your home right.   Some buyers are looking in several cities to get the best deal.  So remember whether it is Novi, Plymouth, Northville, Brighton, or any Metro Detroit city the buyers are looking for a home that is priced right. 

       Homes that are in excellent condition and have updates are selling for more money and quicker.  Newer homes and lake homes are still getting better prices than older homes.  Some banks are starting to let their foreclosed homes go a lot cheaper.  Depends on the house and the bank.   With the low interest rates it is a great time to buy for first time buyers.

My Forecast for the future.    Home prices are going to continue to fall through 2008.  Beyond that is a guess at this point.  The reason why home prices are going to continue to fall are:  1) Too many Michigan foreclosures on the market that the banks have to sell  2)  Banks have tightened the credit guidelines.  It is back to the good old days. 100% loans are just about gone.  You need better scores, more employment and asset documentation.  Banks are double checking appraisals and all paperwork.  With the tightened guidelines it has taken many borrowers out of the market.  Many people can no longer qualify for a loan.  3)  Anybody that has lost a house to foreclosure can not buy a home for at least 3 years.  So think of all the people that have filed bankruptcy or been in foreclosure.  At one point they said 1 in every 100 homes in Detroit was in foreclosure.  They can’t buy.  Less buyers, less demand.  So don’t sell unless you have to.  You have to be motivated, to have to sell.  4) Michigan’s economy has people leaving the state.  Less people again, less demand for homes.

What you should be doing   1)  Have you checked your tax notice?  Are you paying too much in property taxes?  For more information on fighting Michigan property taxes, reading your property tax statement, and millage rates go to www.russravary.com  2)  Don’t get nervous about falling prices.  If you are not selling for years, it does not matter.  It will go up eventually.  Don’t sweat about it. Enjoy life.  3) Don’t Sell unless you have to.  Don’t sell unless you are relocating, changing jobs, moving up ( a bigger house), or life change ( divorce, estate, retirement).   4) If you are thinking of buying find an agent that knows the area and will not be afraid of putting in a low offer.  Work with an agent that will negotiate hard for you.  That could be a make or break on a home deal.

If you would like to sit down and see if you would be a comfortable working with me, give me a call at (313) 310-9855 or email me at info@russravary.com  Feel free to browse my website http://www.russravary.com/ for lots of good articles on buying homes, or selling your home.   Or if you do not want to go that far yet, feel free to search Michigan homesfor sale on my website.  No login required, do it anytime of the day or night at your convenience.