Retirement plans and the housing market

Real Estate Agent with Real Estate One 6501304423

With the real estate market down around the country, we  are being asked these questions.  When will it turn around? When will the prices come back to where they were?  I am going to give you the Southeastern Michigan real estate market  and Metro Detroit real estate market update.

You are thinking of retiring, relocating, or moving in 1 - 5 years.  How soon will home values get back to 2003, 2004 or 2005 prices?  Let's look at much have they dropped.  Home prices in Metro Detroit and Southeastern Michigan have dropped from 20 -35% depending on the city, neighborhood, and area.  In some sections even more.  I was looking at an area in Detroit last night on the MLS.  The lady bought the house for $142,000.  There were 5 foreclosures on her street that sold for $40-50,000 for the exact house.  The non foreclosure homes were in the $70,000 range.  I predict that you will be able to buy a home in many Detroit suburbs for less than $100,000 a square foot.  I am already seeing that in Canton, MI and Dearborn, MI.

Many economist's are predicting that home prices will continue to fall this year and may not stop falling until mid 2009.  So there is a 1 1/2 years gone out of your  5 year time table.  If the average area has lost 30% then that is what we need to gain back.  If you believe that the housing market would come back strong and appreciate in the double digit range, it would take 3 years to get back to where it was.  That is a big IF. 

If you want to move, the questions you have to ask yourself are:  Can I afford to wait 5+ years?  Can I afford to take the loss?  Is it a paper loss or do I have to come to the table with money to sell my home?  Do I want to become a landlord and rent the house with all the headaches?  Do I realize that that cost of heating, insuring, and paying the taxes is the cost of carrying it. (for example if it costs you $9000 a year to take care of the home, that is a $45,000 loss)  Would I be better to sell it now?  What if something major goes wrong in the next 5 years, like the furnace goes? Am I willing to put my dream of living in Florida, or Arizona, or up north on hold for 5 years?  Will my health or the opportunity be there to move?  Am I willing to put up with another Michigan winter?

Bottom line is that I believe this is going to be a long haul.  I don't believe it is going to be a two year turnaround.  It may be a 5-10 year time period before Michigan home prices get back to where they were.  I hope I am wrong, but there is too much wrong with the Michigan economy and the US Economy.  Banks have tightened up the credit guidelines tremendously taking many buyers out of the housing market.  Too much inventory and too few qualified buyers. 

For more on Michigan homes for sale and Southeastern Michigan mortgages and real estate go to my website   Have a great day 


Posted by


 My quote of the month:

You are the only person that can really change your life


May life always treat you and your family well.............


Russ Ravary

Real Estate One

"Helping make your next move easier!"

In the Top 2 % of Michigan Realtors

5 star reviews on Zillow, Google, Yelp, Trulia, and Angies List

cell 248-310-6239

Office 248-363-8300

*See what clients are saying about us  and Russ Ravary testimonials

8 websites to help sell your home quicker.  We have helped so many buyers and sellers move.  Read what my past clients have to say about me.  Google "Russ Ravary Zillow" or "Trulia Russ Ravary" or on Yelp or Google.  Also a "Super Service award winner on Angie's list" for helping other clients.   

Connect with me on Facebook 





By the way if you know somebody else looking to buy or sell a home I always appreciate a referral.





This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Michigan Wayne County Dearborn
housing market
michigan real estate
turnaround in housing market
when will home prices go up
cost of carrying

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Jolynne Photography, Creative Wedding Photography, Family Portraits, Bar Mitzvahs
Jolynne Photography - Hemet, CA
Bat Mitzvahs, Senior Pictures, Event Photography
Russ, I agree with you that it's going to be a long California as well as Michigan. I'm not adverse to being a landlord...but then I'm not near retirement age and there are hassles. Keep up the good work.
Feb 07, 2008 03:09 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239

Michigan homes for sale ~
If you have any questions, feel free to contact me!
Spam prevention

Additional Information