Why are house prices still so high in metro suburbs? (Detroit: for sale, foreclosed)

[Sarcastro]

My wife and I are looking at moving back to Michigan. We were scouting house prices in areas like Livonia, Novi and similarly situated areas and we were surprised to see how much people are still trying to get for their homes.

Most of the state isn't this way, why have these areas maintained such relatively high home prices?

[animatedmartian]

They're highly desirable areas. Good schools (some of them the best in the state), good services, mostly new construction, etc. There's not many negatives to these areas other than traffic and commutes.

The more affordable areas are older and more run down, but depending on the specific suburb can have decent schools and services.

[leroythelion]

In addition, there is very little inventory. I don't see very many "For Sale" signs.

[Retroit]

Supply and demand.

Location, location, location.

[belleislerunner]

Not sure where you moved to but the economy in Detroit/Michigan has been booming the past 2-3 years. Those prices in those towns aren't going to fall further. You'll either have to pony up or choose a different suburb.

[Arthur Digby Sellers]

The fire sale on foreclosed homes in Metro Detroit ended in 2011. There is still so little inventory that new home construction is starting to pick up again in the places you are looking.

[magellan]

Originally Posted by Sarcastro

My wife and I are looking at moving back to Michigan. We were scouting house prices in areas like Livonia, Novi and similarly situated areas and we were surprised to see how much people are still trying to get for their homes.

Most of the state isn't this way, why have these areas maintained such relatively high home prices?

You want to buy a home in an area where home prices are dropping precipitously?

Michigan Association of Realtor stats put Oakland County prices up 21% year over year in December. Macomb County was up 23%.

https://www.mirealtors.com/content/h...statistics.htm

I think the national media paints this picture of metro Detroit in absolute ruins, they expect to find Sarajevo, and then find out the media is full of s*it.

Almost 200,000 jobs have been created in the area in the last 3 years. I'm not saying it's a boom but Metro Detroit is hardly down and out.

[aoletsgo]

Good location, job growth, and low inventory is driving up prices in some communities. My neighbor put their house up for sale this last weekend, just a cute little house and I thought at a high price. It was like blood in the water -- sold in one day with a bidding war from many multiple offers.

[Retroit]

In all fairness, one of the reasons prices are going up is that people are moving out of Detroit and into the suburbs, either buying homes or renting homes from those who do. So the media's picture of Detroit is still correct as long as the distinction is made between "City of" Detroit and "metro" Detroit.