Wayne County Real estate Update, and Oakland County real estate thoughts
Metro Detroit real estate values are still continuing to fall. There is no end in site for a turn around. The problems we face in the real estate market is that we have a reduced number of buyers versus the supply.
Even though new home building has basically come to a standstill, there is less demand. What many people forget is that every person that has lost their home in foreclosure, they are ineligible to buy for the minimum of three years. Your foreclosure must be over 3 years ago to get a FHA loan and over 5 years ago to get a Fannie Mae or Freddie Mac loan. These are the lenders rules nationwide. No exceptions! So many of these people that lost their home to foreclosure can’t buy for at least three years.
The other issue is that the banks have changed the rules to get a mortgage. Which is a good thing for the banking industry. There are no more no money down loans. People were buying $400,000 or $500,000 without putting a dime down for closing costs or towards the down payment. Now people have to save at least 3 1/2%.
It will take many people 3 to 5 years to save $14,000 to put down on a $400,000 Northville home. So the bottom line is that you will see Metro Detroit home prices continue to fall because of the economy and until we can get a large pool of buyers into the market. There is no clear bottom as to when prices will stabilize.
If you are thinking of buying or selling and have more questions feel free to call or email to explore your options.
My email is YesMyRealtor@gmail.com
Cell Number is (313) 310-9855