Homeowner Desperation Means Strong Buyer's Market
The National Association of Realtors, in a report released on August 15th, indicated that housing prices in the Detroit Market declined 8% year over year in the second quarter of 2006, compared to the same quarter in 2005. According to a recent MSN Money article, the Detroit market is as bad as it gets, and one of the toughest real estate markets in the country to try and sell a home. According to the Detroit News, housing inventory in the Detroit market is up 43% from a year ago. The wobbly job market and uncertainty regarding the future of the Big Three automakers has apparently resulted in severe weakness in the Detroit real estate market.
This news obviously does not bode well for the Northern Michigan Real Estate market, at least in the short term. Weakness in the Detroit area which is arguably the number one source for Northern Michigan real estate purchasers may have created buying opportunities, however, for those who have been waiting on the sidelines to see where the dust settles. The buyer's market in Northern Michigan is currently in full swing, and with the recent dip in interest rates, a number of buyers have been stepping forward recently to take advantage of the current market weakness. We are finally getting to the point where we are starting to see property owners capitulate and lower prices in order to sell their properties, which is somewhat of a change of events here in Northern Michigan.
When Homeowners Are Desperate to Sell [MSN Money}
This news obviously does not bode well for the Northern Michigan Real Estate market, at least in the short term. Weakness in the Detroit area which is arguably the number one source for Northern Michigan real estate purchasers may have created buying opportunities, however, for those who have been waiting on the sidelines to see where the dust settles. The buyer's market in Northern Michigan is currently in full swing, and with the recent dip in interest rates, a number of buyers have been stepping forward recently to take advantage of the current market weakness. We are finally getting to the point where we are starting to see property owners capitulate and lower prices in order to sell their properties, which is somewhat of a change of events here in Northern Michigan.
When Homeowners Are Desperate to Sell [MSN Money}
posted by Stefan J. Scholl, J.D. - Exclusive Buyer Agent at 8/24/2006 12:02:00 PM
5 Comments:
So where are the better deals? Downtown? Up Mitchell in County Club drive territory in new developments? Would love to hear your more detailed breakdown of the Petoskey real estate markets.
Detroit is in for a challenging few years as they work through both the unemployment and housing challenge.
BN
4MySales.com
Changes have definitely come into full swing. It's a buyer's market and yet I'm not sure buyers are the real winners with interest rates as high as they are. It will be interesting to see how the real estate ecosystem evolves in response to these changing times.
It will be interesting to see how the real estate "ecosystem" evolves to these changes. Many of the inexperienced real estate agents may be hurt the most.
Anonymous,
Petoskey is such a small market, it is very hard to generalize when responding to your question about where the best deals are. You pretty much have to look at each property individually to determine whether or not it is a good deal.
Of course, seller motivations can vary significantly from property to property, so it is always very important to know the seller's timetable and motivations for selling when trying to locate a deal.
The fact of the matter is that this is a very buyer friendly environment. The supply of properties is ample, and the demand for housing is very weak. There are very few buyers in this market, resulting in a good deal of competition among sellers for those buyers. This has resulted in the strong buyer's market which we are currently experiencing.
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