Detroit Housing Market (Royal Oak, Birmingham, Berkley: mortgage, equity, condos)

[lindsayinitaly]

I've posted a couple threds already about Detroit, but see more advice on renting versus buying. I was wondering if someone could expand on the housing market situation.

I know it is in a serious downturn, as is the rest of America. Is it worst that most other places in America? Is it supposed to turn around in the next few years? It is really a bad idea to invest in a nice place for 3-5 years and better to rent instead - there is nothing at all to be gained by renting, so would one really loose out when buying a nice house? Are there certain areas of Detroit that hold the value in homes better than others (I am looking in RO and B-ham)?

It is a buyers market now, so a deal now I think would be a good investment - the market can't get that much worse - can it?

Any wise advice would be appreciated!

[Coldjensens]

Nice houses have lost hundreds of thousands of dollars. If people bought recently, they actually lost that much. You cannot lose that much renting. Ont he other hand, you cab buy a house in Detroit for under $10K. You cannot even rent for a year for 10K.

Depends on what and where you want to be.

[lovindfw]

Originally Posted by Coldjensens

Nice houses have lost hundreds of thousands of dollars. If people bought recently, they actually lost that much. You cannot lose that much renting. Ont he other hand, you cab buy a house in Detroit for under $10K. You cannot even rent for a year for 10K.

Depends on what and where you want to be.

If only we could predict the future...I too am weighing renting vs buying for my upcoming move. I am selling my 2600 sf house and know that I will need close to that much space in my new house.

[kimba01]

If only we could predict the future

That's so true. Unfortunately, I don't think the market will be back up in 3 years. Hopefully, 5 will start seeing a pick up. But you would think that for what you can get a house for, they will eventually go up in resale. Everyone that I know that has bought a house even 10 yrs ago has no equity. (some may have remortgaged to the max too) I know of at least 3 people who are walking away from their homes. I know a couple of them are going to try the market first and they are listing their homes way, way below what the market was and certainly if they put their homes in a different state, they would probably get so much more.

I sure hope it picks up!!!

[GinaJ]

I think it depends. Is your job VERY secure?I ask that because in this job market one can loose their job at any time. If you buy a new home and something happens will you have the savings to keep paying the mortgage?See if you are renting you can get out of a place easier then if you baught a home. Your sort of stuck. If your secure then you can get a good deal. In my moms area in WB there are so many homes that have been on the market and I am sure they would take a lower price. Hard choices I do know. I have been in a similar boat. It is like both has pros and cons

[Paddington]

I was looking at housing in Detroit, and IMO it's more expensive than what you'd expect given the economic climate. If you want a decent place, in a safe area, with a good commute to the major business centers, it's expensive.

[djmilf]

Originally Posted by Paddington

I was looking at housing in Detroit, and IMO it's more expensive than what you'd expect given the economic climate. If you want a decent place, in a safe area, with a good commute to the major business centers, it's expensive.

Could you describe for us what you consider to be a decent place in a safe area with a good commute to the major business centers? And would you also let us know what you would consider to be a fair price for such a place?

[Paddington]

For example, one of the new condos in Midtown. Those are expensive, comparable to Chicago prices. Royal Oak, which is popular with professionals, is also quite pricey.

[djmilf]

Limiting yourself to new condo construction will drive up the price, especially if you are looking at the new condos/lofts in Royal Oak.

Single family homes in areas like Royal Oak, Clawson, Berkley, etc., won't have the same cachet as a Midtown or Royal Oak loft, but will offer the same floorspace and good commute times at lower prices. Also, there are older townhouse condos in Birmingham that are priced lower than the new construction.

But you might be looking for housing that's closer in to the entertainment districts, in which case single family housing out in the 'burbs isn't what you want.

[Paddington]

Well I have real bad asthma/allergies, both indoor and outdoor. Medications and allergy shots only do so much. Moving into an older home for me is like playing Russian roulette. Maybe it's clean, maybe it's chock full of dead dust mites. Why take such a gamble? I've always had a strong preference for new/refurbished housing, always will.