1) Metro Detroit Real Estate Market or Worse? (Same)
I believe that the Metro Detroit real estate market will continue to be the same. There will be a continued influx of foreclosures to the Metro Detroit real estate market. Detroit’s economy is the key here. If Detroit’s economy continues to take a dump the real estate market will follow.
2) More Metro Detroit Foreclosures or Less? (Same, unless)
We won’t see a higher rate of bank foreclosures unless the unemployment rates soar. Even then it will take a year for the foreclosures to show up on the market. So next year we will see about the same amount of foreclosures. Though we may see more high end foreclosures in Oakland County and cities like Plymouth, Novi, and Northville. To time when the best time to buy Metro foreclosures is impossible. There are many below market deals out there. That is what you are looking to buy in this type of market.
3) Mortgage Rates Lower or Higher or the same? (All)
I believe the rates will continue to bounce around. The rates will depend on the stability of the banking industry. If the banking industry and the world economy stays stable then rates will stay low. But watch for volatility if the federal government and politicians can’t fix some of the nation’s problems.
4) Gas Prices (rise or fall)
I think gas prices will fall a little lower in the beginning of the year and then of course rise for the summer travel season. They always do that to us.
5) Credit Loosen or Tighten? (Tighten)
Banks can’t afford to take more losses so don’t expect easier credit guidelines. Some banks are already cherry picking the best loans and turning away marginal loans. Some banks don’t even have enough money to loan for all the people that want to refinance in the last few weeks. Buyers need good credit scores, good job history, and money to buy a house now.
6) Buyers or Sellers Market? ( Buyers!)
The Metro Detroit Michigan real estate market will be a buyers market for at least 2 years. We need more qualified buyers to stabilize the market. So long as we have an over abundance of foreclosures and tight credit guidelines it will continue to be a buyers market.
7) Real Estate Inventory Level Increase or Decrease? (Increase from 2007 Levels)(Decrease from 2008 Levels)
I think there will be a jump in home inventory in 2nd half of the year. I know of many Wayne and Oakland County homes that went into foreclosure this year. They will be dumped onto the market late summer and early fall next year. We will have people that will have to sell in 2009 because of the economy. Many people will try to rent out their homes until they encounter the problems of being a landlord. Banks will continue to dump the Metro Detroit foreclosures at bargain prices.
8) Metro Detroit Home Sale Prices Flat, Rise, or fall? (Flat or lower)
In some areas Detroit homes are already bargain basement priced. We don’t have any large relocation population moving in. Our hope lies in the immigrant population. We need the Arabic, Spanish, Chinese, Japanese, Turkish, Asian immigrants to buy homes. I honestly don’t know where the bottom is. But if you are going to stay in the home over 5 years it doesn’t matter. My opinion is to buy for the long term. Buy what you can afford and buy for the long term.
9) Metro Detroit Condo Sale Prices Flat, Rise, or fall? (Flat & Fall)
Condo prices are a bargain now. You can find some at $50 a square foot. I think you will see the older Metro Detroit condos prices continue to be about the same. But I think you will see the new Metro Detroit condos that were built after 2000 start to fall. I think they are overpriced at this moment and you will see some newer condos that have some real bargains. Take your time and search hard. There won’t be a lot of them but there will be some new bargain condos
10) Commercial Real Estate Strong or Softer? (Fall apart and drop heavily)
There is an over abundance of strip malls in Metro Detroit. Many small businesses are struggling because of the economy. It doesn’t matter if the business has been around 15 years, the economy is hurting all the businesses. The Metro Detroit economy will have to turn around to help the Malls, and commercial real estate.
Here are my optimistic 2009 predictions that no one asked for. What do you think about them? Do you agree or disagree with these ten ideas???
Sometimes the best lake homes sell in less than a week. Click the button below to get the newest lake listings so you do not miss out on the great deals.