Housing bubble 2 in Metro Detroit or even worse coming in the future? (bank owned, short sales)

[belleislerunner]

Maybe you can link to the ranking of Novi High School on US News and World Report above Rennaisance. I must have missed it.

[ram2]

Originally Posted by LeavingDetroit

Hi Wolverine607,

I replied to another threat where you had posted similar thoughts, but I just saw this thread which is more on point.

I agree that the metro-Detroit housing market is relatively expensive to other mid-West cities. It makes no sense why Cleveland is so much less expensive, comparing nice neighborhoods. I don't understand why though? Detroit salaries are not better than Cleveland and as you mention the unemployment rate in metro-Detroit is higher.

Any thoughts out there on the reason for this?

Housing prices in metro Detroit are not higher than other midwest metros. I am familiar with home prices and property tax rates in Cincinnati and that area is comparable price-wise to Detroit.

Chicago has the highest home prices in the midwest.

[MS313]

Originally Posted by Arthur Digby Sellers

There are no good DPS schools. It is the worst school system in the entire country.

Rennaisance and Cass Tech ARE good DPS schools. And so is Detroit School of Arts. They have some VERY talented people there.

[Arthur Digby Sellers]

Originally Posted by belleislerunner

You'll be proud to learn that Renaissance High School in Detroit (a DPS school) is ranked, via US News and World Report, as the 26th best public high school in the entire state of Michigan. Better than any school in Novi =)

Search Michigan High Schools | US News

BAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAAAAAAAAAAAAAAAAA. ....wait....wait....AHHHHAHAHAHAHAHAHAHAAAAAHAHAHA HAHAHAHAHAAAAAAAA.......

[PCH_CDM]

Originally Posted by belleislerunner

Maybe you can link to the ranking of Novi High School on US News and World Report above Rennaisance. I must have missed it.

Or maybe you could explain why we would use this magazine instead of state test scores.

Parents want good schools. They look at things like test scores, college admittance and AP scores. They don't care that US News runs some irrevelent ranking that considers other variables.

[PCH_CDM]

Originally Posted by MarvinStrong313

Rennaisance and Cass Tech ARE good DPS schools. And so is Detroit School of Arts. They have some VERY talented people there.

But they don't have high test scores. They don't do particularly well compared to other Metro area high schools.

Are they good for DPS? Definitely. Are they remotely comparable to top suburban high schools. No way in hell.

[Arthur Digby Sellers]

Novi High School: 10th in the state based on MME math and reading scores

Renaissance High School: 49th in the state

[PCH_CDM]

Originally Posted by ram2

Housing prices in metro Detroit are not higher than other midwest metros. I am familiar with home prices and property tax rates in Cincinnati and that area is comparable price-wise to Detroit.

Chicago has the highest home prices in the midwest.

Minneapolis actually has the highest home prices in the Midwest. But overall, you're right that Detroit's home prices aren't higher than those of nearby metros (like Cincy).

[us66]

Originally Posted by leroythelion

Probably because there is a very large area, called the "City of Detroit", that is completely undesirable. Those willing to put up with economic disaster, corrupt and un-repentant politicians, pedophile city councilors (just one), and no street lights will find a great bargain in Detroit. Everybody else is looking to live in "the rest" thus driving up prices. I don't think Cleveland has the same issue. Eventually, the rise in prices in the outer suburbs will drive up prices in the inner suburbs (Downriver, Garden City, Dearborn, etc). In an ideal world, economics will make land within the City of Detroit borders "desirable" at some point.

Some sections of Cleveland are quite unlivable, some are still very livable. A lot of people don't want to live in the city limits, though, but it's not to the Detroit extreme.

Originally Posted by Wolverine607

So what do you think? Are we in a housing bubble part 2. And are we likely in for a shock that could be even far worse than our first bubble in just 1-2 years of time? Or is the worse case scenario a return to or close to our peak prices of 2004-2005 and a level off from there for a long long time?

1. To what you said (I accidentally deleted it) about mediocre houses going for $200K in mediocre suburbs, that was very rare around here. $110-130K was more like it, at least in south Macomb County. A lot of those buyers gave up those houses over the last few years, too.)
2. Yes, this is Housing Bubble 2.0. One of the Fed's crowning achievements the last couple of years was to keep interest rates so low that there will be housing bubbles where there previously were none.

Originally Posted by MarvinStrong313

Completely undesirable? Not true. And there are plenty of street lights in Detroit. The entire city isn't living in complete darkness.

True, but the hipsters aren't going to send their little hipster kids to DPS.

Originally Posted by Zippyman

Not sure how $110k is a "greedy" price for a house like that? Not even knowing the neighborhood, I can see it pulling around $1k in rent, and costing far less than that as a purchase. Shoulda, woulda, coulda as to buying it for $50k.. looks like an opportunity was missed .

That house was small for a tri-level and had no basement. It is also on a major roadway and has a traffic light out front. I also drive by it enough to know nothing has been done outside, and it hasn't been owned long enough for much to have been done inside if at all. True, to the $1000 in rent, well, probably $900s, but three bedroom house rents in South Macomb are high in relation to housing values due to the seemingly bottomless well of those trying to leave the city and due to the foreclosed who can't store junk cars and keep German Shepherds in apartments.

Here's another greed example:
557 S Rosedale Ct, Grosse Pointe Woods, MI 48236 - Home For Sale and Real Estate Listing - realtor.com®

(click on Property History)

I saw this one last year. Very nice area, house is dumpy/tired compared to its neighbors, will clean up nice. Listed last year at $160K, an absolute steal, now listed at $220K with no apparent improvements other than yardwork.

[Arthur Digby Sellers]

No, we are not in housing bubble 2.0. Housing prices are rising sharply but are still nowhere near 2007 levels. The market bottomed out so severely and for so long that prices and demand eventually had to come back. And anyone who has been approved for a mortgage in the past few years knows that lenders are so stringent that you half expect them to ask for a blood sample from your firstborn. It's a far cry from Dan Gilbert's and Rock Financial "no money down, no questions asked" loan programs from 6-7 years ago.