more bad news for michigan home values (Detroit: relocating, real estate)

[2good4u]

Just watched the news on home sales sagging across the nation, the reporter on fox news said that is was a modest drop of 2.5% excpt for a few of the devistated places in the nation, the example they picked was detroit and ann arbor. where they said prices dropped 12 to 15% this year and it was very likely that they would drop another 10% by mid 08.
Any one who buys now will most likely loose money before they gain value.
I for one would not investe in michigan unless I was going to stay for the really long haul.
I feel sorry for you who have to sell now because of no jobs.
I have a brother who is trying to sell and he has a really nice home on 1 and a half acre of land with mature maple, a nice garage and finished basment. He was asking 129,000 for it and no lookers, the appraisal came in at 145,000 but the apraisers can not keep up with the deflation rate.
His realtor is selling out and moving to north carolina along with half of michigan.
He can afford to go to 100,000 but the value you get for you home in michigan will not buy a comparable home in most other states.
I sold out a year ago and just in the nick of time before the big drops started.
Most of the realtors he talked to said they expect values to keep dropping for at least another 2 years.
I know many people say that when the price hits a dollar vlaue people will snap up the homes, I think this will happen on a very limited bases, with no draw to michigan people will not spend $ on a home there.
Michigan has a long tough row to hoe.
Good luck to you still there, I feel like you are trapped in a collapsed mine and we have radio communication but can not reach you.
I hope you survive till rescue can reach you.

[jeffncandace]

Oh, were making it. It's not quite as dramatic as you've put it (trapped in a collapsed mine and we have radio communication but can not reach you) but thanks for the concern.

Things will improve here, but they may and probably will go down more before they do. It's hard now, but it's not all bad. The sun is still shining!

[kaypurdue]

I'm doing fine here, and getting ready to buy my first house. I know I'll be able to get a nice deal since it's a buyer's market, but I'm not going to insult the sellers, either. I'm not looking to make a profit, just to have a nice place to live for at least the next 5-10 years.

I have one of them there job thingies, and have the skills to get another one, probably in this state, should I lose my current one. I guess I am one of the few that's not terribly worried.

[magellan]

I look at it like my mutual funds: I don't look at them. It doesn't really matter to me because the home we're in now will suit us fine for 10 years or more, and we're both gainfully employed (and very employable).

My parents live in the same home they have owned since 1969 (they paid about $20K for it). They've been through two or three Michigan/national recessions with plunging home values and double digit inflation, and their home is still worth about 7 - 8x what is was worth then.

Buy low, sell high (if you can).

[scottmi65]

Originally Posted by kaypurdue

I'm doing fine here, and getting ready to buy my first house. I know I'll be able to get a nice deal since it's a buyer's market, but I'm not going to insult the sellers, either. I'm not looking to make a profit, just to have a nice place to live for at least the next 5-10 years.

I have one of them there job thingies, and have the skills to get another one, probably in this state, should I lose my current one. I guess I am one of the few that's not terribly worried.

Ditto....

We just moved here(Detroit Metro) because I got a real nice job. We are renting now and I hope the home prices drop some more before we buy. I am still looking for those mythical half a million dollar houses going for $150,000 that all the doom and gloomers talk about on this forum.

[tablemtn]

I am still looking for those mythical half a million dollar houses going for $150,000 that all the doom and gloomers talk about on this forum.

Check the listings for the Detroit neighborhood of Boston-Edison.

[baystater]

Originally Posted by magellan

I look at it like my mutual funds: I don't look at them. It doesn't really matter to me because the home we're in now will suit us fine for 10 years or more, and we're both gainfully employed (and very employable).

My parents live in the same home they have owned since 1969 (they paid about $20K for it). They've been through two or three Michigan/national recessions with plunging home values and double digit inflation, and their home is still worth about 7 - 8x what is was worth then.

Buy low, sell high (if you can).

That's pretty much right on the mark. If you have no desire to move and have a OK job the value of housing really doesn't matter that much.
And if you have the cash and the time to wait this downturn out (let say 5-10 years). Buying (investing) in Michigan in the next couple of years will probably only make you profit. I don't doubt some time in the near future some long term investors will buy properties and make out handsomely a decade later. Saw this happen first hand in some a couple sections in Boston. We will see.

[KKRA]

I read a positive news story recently posted online by Forbes magazine. It stated that MI real estate prices should "bottom out" by the 3rd quarter 2007 and prices are expected to start turning around after that. We've lived in Washtenaw County for 4 1/2 years and have seen neighbors sell their homes for tens of thousands of dollars below their original listing prices. A few fortunate people have sold their homes. Others have sat on the market a long while; some being pulled off the market after no activity for months. Two homeowners have leased their houses. We live in a beautiful neighborhood and scenic town, so it's hard to pinpoint a specific probem other than the general economy here. I guess everyone who can is waiting until the economy improves. Having stated this, I will say that my recent tax bill shows an increase of several hundred dollars (nobody's been here to appraise any houses in our neighborhood). My house is showing an increase in its value and yet, with all our improvements I don't think we could currently sell it for the original purchase price in 2003. My family and I are thinking about relocating sometime mid-to-late next year and keeping our fingers crossed that we'll be able to sell our house at a profitable price or at least try to break even.

[khfar]

I try to be optimistic about it. We got a really great home for a really great price. We'll probably be in it for at least 5 years. I would LOVE for us to be able to sell it for more than we paid for it!

I agree with the guy above, too - we searched high and low for one of those 1.5 mil homes for $150,000. Riiight. Not happening.

[scottmi]

Originally Posted by KKRA

I read a positive news story recently posted online by Forbes magazine. It stated that MI real estate prices should "bottom out" by the 3rd quarter 2007 and prices are expected to start turning around after that.

I honestly don't see how prices of homes can start going back up until the economy, job market and wages start improving dramatically. And I don't see that happening by Q3 of 2007.