As I mentioned in part one, it’s predicted by many that the average house price in Detroit is going up soon.
I wanted to talk about the numbers predicted by experts, and encourage for you to give me your feedback on what they’re saying down in the comments section.
We talked about the benefits of the projections in part one, now let’s talk about the downsides.
Click below if you missed part one.
Unfortunately, nothingin life is all roses. Everything that’s good also has its disadvantages.
One of the disadvantages of this situation is that there’s a lot of competition.
And there’s likely more to come.
I think this means that it’s important to get creative, to find a specific niche in the market to serve, or to offer your clients something unique that your competition doesn’t.
Now maybe that’s the failed-technology-start-up-guy line of thinking in my head (I failed getting two different companies off the ground years ago), but I would think that the philosophies for dealing with competition are fairly universal.
I read in another article that Colliers International (a global commercial real estate leader) has reported that Detroit has become a huge rental market, due to people being reluctant to sell their homes, combined with 28 percent of Detroit residential houses having upside down mortgages.
I personally thought there were more than 28 percent with upside down mortgages, but what do I know.
Nevertheless, I’m interested in seeing if this trend will continue, after the poll I saw the other day at Detroit News stating that 40 percent of Detroiters plan to leave the state over the next five years.
My line of thinking is that these people that plan on moving will either pursue short sales, decide to sell their houses for what they can get, or just walk away.
Now that I think about it, this will lead to investors grabbing even more properties, which will lead to even more renters, so maybe the trend will indeed continue.
I honestly don’t know how this will play out. There are so many factors, I guess it’s best to leave it up to the experts to project what’s going to happen.
Besides, just because 40 percent want to move in five years, it doesn’t necessarily mean they’re going to move in the next five years, right?
I know from personal experience that it’s easy to say you want to move, but doing it is a whole different story.
What do the numbers tell “you?”
Are there more factors to projecting whether the time is now to buy in Detroit or not?
Am I interpreting these statistics wrong?
Leave a comment. Let’s talk about it.
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“33.1% Rise in Detroit House Price Prediction Leads to Launch of New US Property Investment Website” (via Prweb.com)
“Midwest Housing Market Climbing Back” (via MSNBC.com)
“Here’s How Annual Stock Market Returns REALLY Look” (via businessinsider.com)
“Letters: The spirit of Detroiters” (via DetroitNews.com)