So many baby boomers and people that are already retired are wondering how long before the Southeastern Michigan real estate market comes back?
Well let's look at the past to predict the future. Right now we are back to 1990 home prices. So let's think about this. From 1990 to 2004 it took 14 years for the market to get to it's highs. It was a booming real estate market.
Detroit's economy was rolling along. Homes were being built by the hundreds each year. The Big 3 were doing good. Unemployment numbers were low. Interest rates were on the down ward trend. Banking regulations were extremely lax. Just about anybody could buy a house even without a down payment or without income or asset documentation. Mortgage interest rates even reached a 40 year low. All of these factors hepled drive the real estate market.
Many of those factors are not present in our current market.
- the big three are struggling
- Metro Detroit's unemployment numbers are at 20 year high
- Banking regulations are tougher than they have been in 10 years.
- Home building is at a standstill
What I am trying to say is that is going to take at least 15 years plus for the Southeastern Michigan real estate market to come back to its highs. So buckle down for the long haul if you are upside down in your mortgage. If you want to move, then put your house up for sale now. Waiting won't make a difference. I myself don't see any major changes in the Southeastern Michigan real estate market for at least 7 to 10 years.
It doesn't matter whether it is Farmington Hills real estate, Redford real estate, or Canton Michigan real estate it is going to take time. So whatever you do start living your life and don't depend on the real estate market to come back. Make your decisions based on the market not coming back anytime soon.
More Southeastern Michigan home seller tips
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My Month of December quote:
~ Mark Twain”
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
Great post. I love the graphic. Is it OK to say "Don't hold your breath?"
Detroit must have been one of th hardest hit, we are down to 1997 prices but at least we have and up and down , sounds like yours is steadly going down. 14 years would be more than I would stick around for.
Russ, great post so difficult to tell this to some of our sellers, you made it so nice via the charts. The old saying do not kill the messenger just because it is bad news.
I really like the graph. It adds a great visual for people to see. I feel bad for homeowners in your market. You are realistic about the market.