Detroit Real Estate

 Here is a quick look at the Wayne County real estate market in March and April of this year.  In April Wayne County home sales in units were down 56% and down 18% in price from April 2008.

In March unit homes sales were only down 27% from March 2008 and sales prices were off 11% from the year before.

Wayne County Condomiums sales were very similar.

Wayne County Condos unit sales were down 47% from April 2008 to April 2009.  Wayne County Condo prices were down 20% in the same period from April to April.

In March of 2009 condo sales units actually went up 5% from the year before. But condo sales prices dropped 25% from the same period. 

Search Wayne County Condos and homes for sale..... get the latest foreclosure listing emailed directly to you.

Russ Ravary your Metro Detroit Realtor

Comp and sales information courtesy of Realcomp II LTD.

The politicians are running all over trying to put band-aids on the Metro Detroit housing market.   NAR is screaming to do this, mortgage lenders are yelling to do that, and real estate agents are saying another something else.  There is no clear plan.  Some Metro Detroit real estate agents are even dumb enough to advocate down payment assistance programs so they can help themselves right now.  The lobbyists are getting rich, and the average American are getting mad at big business, banks, and politicians.  Some of the fixes are helping but they won't be able to fix the Detroit housing market.

The only thing that will fix the Metro Detroit housing market is time.  At issue is the huge home price devaluation.  I don't believe ever in American history before have homes lost 25 - 90% of their value before.  People are stuck in their Metro Detroit homes because they owe more than their house is worth.

Even if they

•  lost their job
•  have a major medical illness that they can't work
•  get a divorce
•  have a death in the family

......they have no way of selling the house.  The option is either to short sale the house or let it go into foreclosure.  This option is not going to change for many years to come no matter what anybody does.

The house has to go back to the bank as a foreclosure.  I had several calls this week from clients who lost a family member but they can't afford to pay the mortgage to sell the house as a short sale.  The house is just isn't worth it.  They are letting it go as a foreclosure.

The second is basic economics.  We have too much supply for the amount of demand.  That again won't change for years.  Because of bank rules every Detroit foreclosure and short sale seller won't be able to buy for 3 to 5 years.  ( Yes you heard me right.....FHA and VA won't let you buy a home for 3 years if you have a short sale)  

Until these Metro Detroit foreclosures and short sellers are back in the market to buy a home the Metro Detroit housing market can't be fixed by anybody, any solution.

We need more Metro Detroit home buyers and the only sources they can come from is:

1. New immigrants
2. Young people buying their first home
3. or the foreclosed people or short sales sellers

 So until time passes and all of these 3 categories of home buyers can increase to meet the supply of foreclosures the Detroit suburb housing market will remain the same.

So my advice to Metro Detroit home buyers is to buy for the long term.  Plan on living in the home for 5 years +.

Russ Ravary your Metro Detroit real estate agent

helping Oakland and Wayne County real estate buyers and sellers (Michigan)

Here is a look at recent sold Livonia foreclosures in the last 30 days.  You will notice that some of them have sold as quickly as 2 days and 7 days.  The average time on the market is 53 days for the Livonia foreclosures that have sold.  For a while there the average time on the market was 4 to 6 months for Livonia homes.  So sales have picked up and foreclosures are selling quicker.

If you look at the list below you will notice that

• 10 sold                                          over list price
• 5 sold                                            within $2000 of list price
• 4 sold                                            less than 5% of list price
• 5 sold                                            between 5 -10% below list price
• 5 sold                                            between 10 -15%  below list price
• 3 sold                                            below 20% of list price 

The two things I recommend to any Livonia foreclosure homebuyers is:

1. If you see a house you like don't wait put an offer in on it.  Good homes are selling quickly.  The old saying of "if you snooze you loose" is true here.
2. Don't try to lowball the house if it hasn't been on the market for over 30 days.  Homes that just came on the market and are nice are going to be snapped up.  Remember there are other people that know it is a deal too. 

So if you are a bargain hunter, you have to be aware that you may not win that Livonia foreclosure if you bid to low or wait too long.  As you can see metro Detroit home buyers are willing to pay a fair price for the Livonia foreclosure.  So if it is a great deal bid appropriately.  Talk to your Livonia real estate agent for advice on how to bid.

There are still lots of great Livonia foreclosures to be had.  If you would like Livonia foreclosures listings emailed to you join my Livonia foreclosure home VIP club. 

Feel free to call me with any questions about any metro Detroit foreclosures or if you are a first time home buyer and need some answers.

Russ Ravary your Metro Detroit real estate agent

comp and listing information courtesy of Real Comp II Ltd.  Homes above have been sold by various Realtors

 Northville real estate update

More Northville relocation information or Northville homes and real estate info click on one of the categories below.

 Northville MI

The latest Northville foreclosures

Other Northville subdivisions

Northville real estate MI

Northville Home buyer tips

Feel free to pick up the phone and call me with any questions.

Russ Ravary Your local Northville real estate specialist

I'm going to cheat tonight and tag team off another blog I read and explain where I think the Metro Detroit real estate bottom will be.  All these people that say the bottom is coming I think are wrong.  And I don't think whether it is Metro Detroit real estate, California, Texas, or the Carolinas.  I think we are a ways away from the real estate bottom.

Here are my reasons:

It is simply about supply and demand we have too many homes for sale for the amount of qualified home buyers.  This is my thinking.

1. When you have had a foreclosure you can not buy for 3 years at the minimum because of bank rules.  You have to be out of a foreclosure for 3 years before you can buy again.  That is for a FHA Loan for conventional loans it is longer.  So all these people in foreclosure can't buy.  That is a large amount of potential home buyers that can't buy.
2. What we need to fill those homes with an equal amount of people.  That has to be new immigrants from other countries, kids growing up and being able to afford a home (they have to have a job), investors, foreign investors.  The number of foreclosed homes has to equal the number of new buyers.
3. Many of these foreclosed people will never be able to buy  a Metro Detroit home again because the loan rules have changed.  There are no more stated loans, there are very few 100% loans, there are no more sub-prime loans.  Will they ever be able to qualify with the new bank rules?   Many of them will never be able to buy a home.
4. Some of the people will never buy again because they are too old.  It's not because of the banks won't let them buy because of their age, it's will be their choice.  Some of these foreclosed people are in their 50's and 60's.  They may decide not to buy so close to retirement.
5. Some of these people that were foreclosed never saved for a down payment.  Now you have to because of the stiffer bank rules.  So some of these people will never buy again because they don't have the saving habits.

The economy and confidence has to come back for people to afford the higher priced homes.  The younger new buyers need jobs.  All of us need jobs.  Plus mortgage interest rates have to stay low  in order for people to afford the higher priced homes.  Salaries will have to go up to make all the large homes that have been built in the last 10 years to be affordable.

My opinion the rash of foreclosures will slow down this year because 2006 was close to the end of subprime mortgages. Now I am saying the majority of foreclosures will slow down, not all of them.  We will still be seeing more foreclosures because there are people that have struggled for years and still letting them go.  Some people just can't hang on because of the economy.

BUT WE NEED THE ECONOMY to turn so people can stay in,  and afford their homes.  Otherwise the home foreclosures will continue.  Where the bottom is or when it will happen nobody knows.  Not I or any of the self proclaimed "experts" know.

If you are a real estate agent the key is to work hard and don't worry about where or when the bottom is.  If you are a seller don't bank on when the market will turn.  Make a decision each year whether it is a good time for you to sell in the current market.  If you are a buyer buy for the long term.  Buy for 10 years or more.  Don't wait for the bottom, because by the time everybody realize it is the bottom prices will be rising.

Just my thoughts about the real estate bottom

Russ Ravary your Metro Detroit Real estate agent