Detroit Real Estate

Our Metro Detroit real estate market is what I would call "stable".  Our local housing inventory has been relatively staying the same. Our local MLS has been averaging between 44 -46,000 home listings.  Here is a quick explanation of what a change in housing inventory would mean.   If the housing inventory was growing, it  means homes are not selling as fast, that demand may be down.  More homes would be coming on the market than were selling. Metro Detroit home prices may drop because there is less demand.

If housing inventory was going down it means the real estate market is ''hotter".  That homes are selling faster than they are coming on the market.  It may mean that home prices may be rising.   There may be fewer buyers at that time of the year.

But the Metro Detroit real estate inventory and market prices are relatively stable.  Neither going up in price dramatically or going down quickly.  Which is good for both buyers and sellers.   The investment firm was trying to gauge what the end of the first time home buyers was having on the market.

Another thing that hasn't changed in the last few months is the amount of foreclosures and short sales.  It has been about a 50% split between private owned home sales and the combination of short sales and foreclosures sales.

So as of right now there has been no drastic change in our market because of the end of the first time home buyer credit.

The reasons there are so few Metro Detroit foreclosures in Michigan are because:

1.) Banks are trying to work out solutions with current Metro Detroit home owners and renters.  I have heard stories of renters being able to continue renting the foreclosed property for up to a year later.  So instead of being sold as a foreclosure the renters are getting a chance to buy them or a few home owners are being able to work it out. 

2.) Some banks have merged with other banks.  Bank of America has gobbled up Countrywide.  Wells Fargo has swallowed up other banks.  But in this merger mania has come confusion.  I personally know somebody that has a Countrywide loan that has not been foreclosed on after 2 years.  He has lived in the house for 2 years free!  Some banks I think don't have a clue where the properties paperwork is at.  Which trust holds it.  So if they can't figure out the title work they are not putting it on the market. 

3.) Many Metro Detroit foreclosure properties have come to the market slowly because of Jennifer Granholm's moratorium on foreclosures, and Fannie Mae's moratorium on foreclosures.  It basically gave many foreclosures another 6 months of being in limbo. 

4.)  There I believe is a slowing in the number of Metro Detroit Michigan foreclosures. 

It wasn't unusual for most Metro Detroit Michigan suburbs to have 10 -20 foreclosures.  Now some cities have less than 5.  So don't sit back and wait for just foreclosures.  Look at everything in your price range.  Sometimes the Metro Detroit short sales are good deals if you have the patience.

Search Metro Detroit foreclosures and home listings 

What will happen after the first time home buyer tax credit expires?  I don't think anybody knows.  I myself think it has been one of the Democrats best success stories.  I think if you ask any real estate professional you will hear that the tax credit did bring a large number of buyers into the market.  The tax credit created demand.  And I believe the demand in the Metro Detroit housing market was enough to temporarily stabilize the home values.

Before the first time home buyer tax credit we were on a major slide of home prices.  The tax credit brought investors and first time home buyers into the market.  In the last year it was not unusual to see multiple bids and homes going over list price.  All due to first time home buyers and the tax credit.  Sure the higher priced homes were not affected but the homes under $250,000 range was.

Investors also jumped into the market.  They could buy and then fix up homes to flip to first time home buyers.  That also helped the market.

As for what will happen I honestly don't know.  I do think demand is already dropping off.  We are exhausting the first time home buyer pool.  Now we are getting bad credit people applying.  There are less qualified buyers out there right now.  So hopefully home values won't drop after the first time home buyers leave the market because the credit expired. 

Search Metro Detroit homes for sale  

 If you are thinking about buying Commerce Township real estate you might want to know about Commerce Township Demographics.  Here are the demographics from the last census 

Search Commerce Township homes for sale

 With so many people having bad credit land contract homes are becoming more common.  Right now there are

• 355 Wayne County homes that accept land contract terms
• 239 Oakland County homes for sale that accept land contract terms
• 37 Livingston County Home listings that accept land contract terms
• 88 Macomb County homes that accept land contract terms
• 62 Washtenaw County homes for sale that accept land contract terms

Yes there are not an over abundance of home sellers that accept land contract terms.  But that is over 750 homes that are available to people that don't qualify to get a bank loan.

If you have had a bankruptcy, foreclosure, or have bad credit a land contract may be the way to get a home for yourself.

Search Michigan homes for sale and get homes that have land contracts emailed to you weekly.     

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We could never learn to be brave and patient, if there were only joy in the world.