Nov 02

Detroit Home Price Gains – Too Hot or Just Getting Warmed Up?

Are Southeast Michigan home prices rising just too fast, or is this just the beginning of a new era of prosperity for the region?

The latest data from the S&P/ Case Shiller Home Price Index which is often more conservative than other indices shows regional home prices rising 16% in the 12 months through August 2013. That’s 26 months of positive gains.

Some reader and attention starved media channels and voices have suggested area home values are rising too fast, even though 16% a year is hardly an overly rapid pace in this industry.

Ironically, looking at the hard data Michigan real estate could be among the healthiest and best value in the country. Those that sat on the fence and haven’t gotten into the market may not be happy about missing out on some of these great gains. Yet, fortunately they may still have a chance to grab a great deals on a home or even make some incredibly money investing in real estate here.

It’s true that there are still lots of foreclosures in process, though maybe not so many REOs as delinquent mortgages still gradually working their way through the pipeline. These defaulting home loans and foreclosure homes are not much of a danger to the market any more. In fact, most real estate investors wish that there were a lot more of them to buy.

For the pessimists out there is important to point out there are still great discounts to be found in the Michigan real estate market, and based on historical real estate cycles there could be another 15 years of growth coming. In fact, according to the latest Case-Shiller report the greater Detroit area is the only one of the major metros covered still below 2000 value levels.

With all of the development and investment going on to rebuild Detroit we could finally be seeing a glimpse of a new era of prosperity becoming a reality. Why not be a part of it?

0
comments

Reply