[Meg Lesher]

I've been looking for work here in S.E. Michigan for over a year and have decided to go elsewhere before I too lose what I've got left in savings. I'm sure there are some people who are finding work, but the economy here is very bad, and the price of essentials such as food and gasoline keeps going up. To the previous poster, who speaks of wanting to buy a house in E. Washtenaw County, I live in this county. I don't think we've seen the bottoming out of the housing market yet. It might be worthwhile to rent for a year and then look; by then you'll know if you want to stay, and I bet the price on houses will be lower still. This strategy might not help the economy but it might save you some problems down the road. I'd be very hesitant to commit to buying a house here right now because things are still spiralling downwards.

[Cato the Elder]

Nope, there's just a small vocal minority who would have you believe that armageddon is here b/c the Big 3 trough is drying up after 100 years. No more buying beach homes and Corvettes with a high school education. There's at least two of us here who moved to MI from CA and several from southern states - afaik, none related to the auto industry. The rust belt in general has been losing population and going to the sun belt. MI's participation in this trend might be surging a bit b/c of the auto industry, but it's not catastrophic.

For those who never visit other states, most places have higher gas and taxes. Gas in Chicago last week (Cook and Lake counties) was over 30 cents/gallon more expensive. CA is even higher. I don't know of too many other states with sales tax at 6% - many are pushing 10% if not more. I'm beginning to think that people do not know how good they've had it, and still have it, in MI.

[Michigan Aaron]

Originally Posted by Cato the Elder

Nope, there's just a small vocal minority who would have you believe that armageddon is here b/c the Big 3 trough is drying up after 100 years. No more buying beach homes and Corvettes with a high school education. .

Most of my relatives from the Detroit area are in the same boat. No post high school education and total dependence on the auto industry.......that's not going to work anymore. My cousin called me a few years ago and wanted to know about getting into healthcare like I did (x-ray tech). I implored him to do it, but he went right back to shuffling between jobs with auto part manufacturers & what not. Anyone that has even the slightest desire to get into healthcare should take that idea and run with it because it is really going to be a torch carrier for Michigan's recovery. I know Oakland U recently announced they are starting a med school in association with Beaumont Hospitals.....that is great news for the SE region. I interviewed with many organizations before accepting a position in Petoskey, and all of them were growing and looking for skilled people. I wish the big 3 could return to its heyday, but the reality is it's not gonna happen anytime soon and Michigan needs to look in a different direction.

[RedWingsFan]

Originally Posted by scottmi65

Hmmm, is it really that bad in MI. I grew in Newaygo county and all my family still lives there. I do not know anyone who is unemployed or losing their house.
.

I have to agree with this post... I think a lot of the negativity is generated by the press. They stir the pot...

All my family lives in Michigan and they are doing great. All have good jobs, none have lost homes, etc. Personally I know a lot of people in Michigan even beyond my family and none have lost their jobs, none have lost their homes...not even close.

[Cato the Elder]

Originally Posted by Michigan Aaron

I implored him to do it, but he went right back to shuffling between jobs with auto part manufacturers & what not. Anyone that has even the slightest desire to get into healthcare should take that idea and run with it because it is really going to be a torch carrier for Michigan's recovery.

That's a good point - the people of MI need the desire to move on as much if not more than the politicos. It's easy to blame Granholm, and the buck does stop with her in MI, but the entire state needs to change its outlook, not just Lansing.

The Oakland/Beaumont connection is good news - glad to hear it. MI is rightfully proud of its two Big Ten schools. It's about time that Oakland and WSU start getting more support and recognition also.

[cburnett]

It's rough but not as bad as some may make it out to be. I'm in my early
30's and am working hard to stay afloat. What people need to keep in mind is that there are jobs available...even though they may not be the most desirable jobs...they are there.

I'm a Staffing Coordinator for a company in Warren, MI. Everyday I talk to people who refuse work because for example they were making $15/hr and are only being offered $13/hr. Although $13/hr is a $2/hr loss, it's still a job. You can always pick up something on the side PT...that's what I did.

Only those who work hard and are willing to do whatever it takes to survive are going to make it here.

[scottmi65]

Originally Posted by Meg Lesher

I don't think we've seen the bottoming out of the housing market yet. It might be worthwhile to rent for a year and then look; by then you'll know if you want to stay, and I bet the price on houses will be lower still. This strategy might not help the economy but it might save you some problems down the road. I'd be very hesitant to commit to buying a house here right now because things are still spiralling downwards.

I am not looking to flip houses.
Why rent for a year? I have a job, Michigan is a good state overall. The only thing is it has too many people in it for my taste. So I guess all the doom and gloom/people leaving the state posters works for me.

So when I look at the housing prices in Washtenaw County and read post like yours it does not add up. I think houses are pretty pricey where I am looking so that tells me either the economy is good or people bought more than they could afford and are trying to play Donald Trump.
I do not need a 3000sqft McMansion for a family of four.
I am looking in the 150 to 250 range and it does not seem to buy alot of house in the salem, superior township areas.

[randomguymike]

Originally Posted by scottmi65

I am not looking to flip houses.
Why rent for a year?

Simple economics. Why buy a place for $200K now, when next year the same place will be $175K. You're not going to get $25k of equity in one year of payments. So, you're only making money by waiting.

Look at what happenned to me as a lesson. I bought for $160 in Sept '05. In Sept '06 my place could have sold for about $135. Now, I had only paid down about $3750 of my loan. So by waiting a year to buy the same place I could have been $21,250 ahead. Would it have been worth waiting a year to buy for that, absolutely, but I didn't.

Also, in washtenaw county prices are falling still from a very over-inflated value. Pfizer still hasn't emptied all of its homes onto the market. Many people in the area I talk to are idiots only able to pay interest on their loans as they HELOC'ed them up in the "boom" (prices went up a whopping 20% total in four years).

Don't buy yet. Thats the best advice you can get.

[scottmi65]

What is your 135k house worth today? Will it be worth over 160K in five years... Probably.
What about the 12K (assuming 1000 a month)in rent for that year is that saved money?
I am looking to stay at least five years in the Detroit area so sure it makes sense to wait until the market absoulutely hits it's lowest point but at what point do you take a hit and suck it up until the market levels out. What about all the people trying to cash in on their parents houses that they paid 30K for in the seventies and are asking 250k for now.
I bought 80 acres on the west side of the state for 18K about 10 years ago. If I were to sell it would people what until it reached that price again. I doubt it. So like I said sometimes you have to bite the bullet and buy when you need to or is right for you. Sure it sucks if house prices fall right after a buy but they will always go up in the long run.
MI has never been a hot market like CA but more steady with minor ups and downs but in general, usually up. Houses/property are worth more now than in the 90's and in the 90's they where worth more than the 80's etc.
As far as people getting overvalued home equity loans and blowing the money on jet skis or SUV's well it sucks to be them. They will be hurting for a long time until their home value catches up to their debt.

[scottmi65]

Originally Posted by randomguymike

Simple economics. Why buy a place for $200K now, when next year the same place will be $175K. You're not going to get $25k of equity in one year of payments. So, you're only making money by waiting.

Look at what happenned to me as a lesson. I bought for $160 in Sept '05. In Sept '06 my place could have sold for about $135. Now, I had only paid down about $3750 of my loan. So by waiting a year to buy the same place I could have been $21,250 ahead. Would it have been worth waiting a year to buy for that, absolutely, but I didn't.
Don't buy yet. Thats the best advice you can get.

How do you know a 200K house will be worth 175K next year? What if the house was listed for 250k and was bought for 200K, and was worth 225K (according to your formula)next year, would that be simple economics?

Did you try to sell your house a year later and only got 135k for it? If not then how do you know it dropped 25 thousand? Are you going by the assesed value?

You did not account for rent you would have paid or tax deductions in your simple economic formula.