My Metro Detroit area real estate predictions (edit/delete)
Unfortunately the outlook for Southeastern Michigan real estateis not the rosiest. Because of the high unemployment, the poor economy, people leaving the state, the high foreclosures, and the banks tightening the credit guidelines HOME PRICES WILL CONTINUE TO FALL IN 2008. There are too many empty homes, too many bank foreclosures that have not been sold, and no sign of economic turnaround. The banks are going to continue to dump houses at lower prices in order to unload them which will lead to lower comparables in subdivisions. Buyers are going to continue to seek out the best home for the best price, and best value. With so many foreclosures they expect the same prices from homeowners as they do from bank foreclosed homes. So for sellers it is not rosy, but for buyers it is one of the greatest times to buy.
For buyers Here are 3 great reasons to buy this year.
1)Interest rates are still in the low 6% - 7% range depending on the day. You can still get a low payment on a home and you can buy more home than you could 3 years ago. As a buyer before you see a mortgage person or a Realtor you need to sit down and figure out how much you can afford. What kind of monthly payment can you pay for a house without getting yourself in trouble. Then ask the mortgage person what price house that payment can buy. Be sure to include taxes and insurance. Then once you get that number from the mortgage person talk to a Realtor and see what kind of home that price will buy. Don't let the Realtor or the mortgage person leave out the taxes or insurance. It is a cost that you have to pay. Stay within your budget so you can keep your house. For more mortgage information go to www.russravary.com
2)There are many available home choices as there is a large inventory. Homes that are updated and priced well are still moving quicker than other homes. But many homes are sitting on the market over 60 days. Get house hunting tips, negotiating tips, and buyers tips and advice on my website on the buyers button.
3)Wayne County real estate, Oakland County real estate, and Livingston county real estate have fallen in value in the last 3 years. Many home values have fallen between 20 - 35%. What that means to you is that you can buy more home than your could have in the last 3 years. Some of the home prices are back to 1990's.
So my advice to potential sellers is don't sell unless you have to, ie... relocation, divorce, death, retirement, or moving up to a larger house. Move if there is a life changing event. If you are just testing the market or want to price it high don't waste your time. Wait to sell. But remember that many economists are predicting that it will take up to 10 years to get back to the prices we had 3 years ago. For more great selling info, articles, sellers tips go to www.russravary.com and click on the selling button
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