The Metro Detroit area including the suburbs has been hit hard by the slump. I would estimate that the average home has fallen 30 -35% off their high prices several years ago. I was listening to CNN a week ago and one economist was saying that it would take up to 10 years for the prices to rebound. He said he had lived to the Texas Savings and Loan Scandal and that is what it took to come back. What are the markets like in your area?
I myself am not giving up on the business. Homes are still being sold just at lower prices and taking much longer. Sure they are taking much longer. Sure it is harder to convince sellers to lower the price. But if they don't they won't sell. At least here in Detroit. I can't tell you how many times in the last year that I heard "we won't give it away" Some sellers won't accept that they are not giving it away. They need to accept that these prices are a "good price" for the market. The home is going to sell if it is a value for somebody.
Unfortunately in the Southeastern Michigan real estate market there are few buyers. The Michigan economy is forcing people to move out of state. The banks have tightened their guidelines, I am guessing that about 30% of the buyers that could buy last year can't buy this year. Does anybody agree with that? Then to add to the mess is the people that are in foreclosure or have been foreclosed. They can't buy for at least 3-4 years from the foreclosure. That has taken even more buyers out of the market here in Metro Detroit and it's surrounding counties. They have said 1 out of 100 homes (1%) are in foreclosure so that means here in Detroit 1% can't even buy a home for a few years!
I wanted you all to feel a little better about your market as I would guess we are one of the worst real estate markets right now.
I don't know about all of you... I am buckling down, working harder, re-adjusting my business plan to get my piece of the pie. What unique steps will I have to take to help get my clients's home sold. There are so many agents leaving the business which makes it better for me and the remaining agents. But all of us are going to have to work harder to help sell our clients properties and survive in this market. I am one of those people that accept the realty of the situation and not whitewash it. Sure I'm nervous about what this year will bring. But I want to be a survivor of this market. And I hope that those who read this want to be to. So good luck to all of you. Any thoughts or tips on how to survive this market from those who have gone thru it before will always be appreciated! Happy New Year!