Tagged: foreclosure homes

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?

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Jul 18

Has Southeast Michigan Finally Broken Through To Better Times?

Is Detroit’s bankruptcy a good or bad thing?

Michigan real estate and businesses have been turning around for several years, and the recent housing bubble and economic mess has been all but forgotten by many, accept for the opportunities it has left behind.

However, central Detroit has continued to suffer with vacant neighborhoods turning into warzones, public services and law enforcement becoming unreliable, and poverty a serious problem.

Efforts have been made to turn it around including new strategies involving bulldozing and rebuilding entire neighborhoods.

In the surrounding suburbs like Shelby Township, Rochester and others the woes of downtown Detroit can seem a world away, but certainly what is good for Detroit is good for the entire Southeast Michigan region.

In Oakland County new pioneers are innovating and looking to create a new generation of business startups and economic activity, while in Pontiac one beverage company owner plans to invest over a quarter of a million dollars in an art festival with goals of revitalizing the city.

While individual investors are trying to turn things around in Detroit one property at a time it’s been slow going. However, as many individuals and even giant automakers have recently seen, bankruptcy can be an incredibly positive thing. It’s a chance to reset and re-emerge in better financial shape and ready to plow ahead.

While there will be painful side effects for many, this is likely to be a pivotal moment that could truly and finally bring about a lasting rebound.

That doesn’t mean that everyone has to rush to downtown Detroit and scoop up every foreclosure home that they can get their hands on. Those that are still uncertain or who aren’t comfortable investing in the city will no doubt find that the ripple effect includes a significant boost to the surrounding economy and home values, driving up home prices, rents and increasing demand as many more are attracted to the area again or return home, inspired to be a part of the rebuilding.

The only question is; will you get in now and realize the best returns, or drag your feet and get in on the tail end once the best gains have already been had?

 

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