Michigan real estate, what you should be doing

What you should be doing in the real estate market 

Metro Detroit Neighboorhood update,

Southeastern Michigan Real Estate Update

What’s happening now.  Metro Detroit 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 Southeastern Michigan homes are sitting on the market up to a year and a half.  It is a buyer’s market.  Buyers are looking for up to date homes, ready to move into homes at a low price.  Buyers 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 in the same city?   Buyers are not concerned with a “great neighborhood” as much as what are they getting for the money.

       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.    Michigan 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 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.  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?  2)  Don’t get nervous about falling prices.  If you are not selling for years, it does not matter.  It will go up eventually.  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).   

For more information on these topics       

To find out how to fight your taxes         Buyers Tips         

To search Michigan homes for sale         Sellers Tips           Holiday trivia

Recent sold homes in your subdivision                              

Homes for sale in your subdivision                                    Millage rates and how to read    

Check out your subdivision update online                           your tax statement

Go to my website:

www.RussRavary.com      or   www.DetroitMichiganRealEstateHomes.com

Or email me at info@russravary.com  I will be glad to answer your questions, get you more information

Russ Ravary “your local real estate resource”