January metro Detroit real estate update

Do I think Metro Detroit home prices have bottomed out?  Do I think southeastern Michigan real estate is on a turn around.  No I don’t.  I think there will be a continuation of foreclosures that will be hitting the Detroit real estate market.  I don’t see that slowing down in the near future at all.

What I am seeing is that many of the Michigan Home buyers are people either moving in from out of state, investors, or first time home buyers.

So what do I suggest you to do?  Do you sit on the sidelines and wait for the bottom or the lowest prices? Well first of all …. how will you know the Metro Detroit real estate bottom has been reached.  Do you have a “expert in your pocket”  None of the “experts” have been able to call it so far.  And I don’t think anybody can call the bottom until it has happened and then it will be too late.  Metro Detroit Home prices will be on the rise.

My thoughts are:

1) we have tremendous mortgage interest rates right now.  A full percent lower than last year.   I have seen Michigan home buyers getting 4.875%    30 year fixed rates with no points in the last few weeks.  So it is a good time to buy a home.

2) Metro Detroit Home inventory constantly changes.  A Novi house that is on the market today may not be on the market for 5 or 10 or 15 years.  The beautiful home that is on the market today may not be be for sale in the future.  You may never have the chance to buy the house ever again.  That perfect house for you may never cross your path again.

3) Buy for the long term.  You should be looking to stay in the house for at least 5 years to 10 years in this economy.  It doesn’t matter whether it is Wayne County or Oakland County.  You are going to lose money if you are only planning to stay in a home for 3 years.

4)  My clients that have bought in the last 2 years are not sad that they did.  Yesm Many of them have lost home value.  But I have asked them are they happy they bought.  And they said yes, they are happy with the house they bought.  They all bought for the long term.  They say it was the best decision they could have made.  So it doesn’t phase them that their home value is down.  They love their home.

So my advice to you if you are looking to buy a home in the future is start looking when you are ready.

  • Don’t wait for the “bottom”
  • Search for a home that you love.
  • Buy as low as possible preferably below market price
  • Get the lowest interest rate.  It may even pay to buy down points.

Or you can sit and wait.  It’s your choice.

Russ Ravary

Your Metro Detroit real estate specialist

My quote of the day is:

I refuse to accept the view that mankind is so tragically bound to the starless midnight of racism and war that the bright daybreak of peace and brotherhood can never become a reality…. I believe that unarmed truth and unconditional love will have the final word.  ~Martin Luther King, Jr.



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