Is the real estate market in Metro-Detroit recovering? We have limited supply, increasing prices, and what seems to be more buyers. Less houses are for sale. Taking all that data, it sure sounds like a recovery but I’m hesitant to call it that. What has spurred our economy to have this turnaround lately? I’ll agree we’re doing better but I don’t know if the real estate market should be turning around as quickly as how it appears to be turning around. This coming from the ever-optimist. I’m, however, a realist.
Where did all of the inventory go that we had last year? What happened to all of the foreclosures that were coming and all of the inventory that the banks were going to have? I think they still have it. Where else would it go? I can take you down any street in Detroit that has boarded up houses that aren’t for sale. Sure, some of these are just caught somewhere in the process but many of them are just being held by the banks. These houses would have been sold if it were the market 2 years ago when banks needed money but deals with the Government and shored up financials now have the banks sitting on the houses to not flood the market. I don’t know if there was a behind the scenes deal with the government to have them hold on to houses or what but either way, they’re losing out.
What happens to a house that sits in Detroit for 6 months vacant? What about 12 months or 24 months? What I know from experience is the loner it sits, with the poor security that banks use, the more of a chance it will be vandalized or be opened up to the elements. Keeping a house around that long vacant is going to make it pretty worthless. Also, they’re creating a false bottom in our market and false positive signs. That is unless they have endless resources to hold on to the houses and trickle them out over the next 5 years.
I don’t know what’s going on but it doesn’t seem like just a great recovery right now. What do you think?
Be a Renegade,