The Real Estate Downturn Continues

Sorry I haven't blogged for 3 weeks, but I've been out of town on vacation! No high speed internet, just dialup available where I was in good ole' "Hooterville," where they say, "the internet, what's that?!"

While away I did manage to read the Detroit papers daily via that slower than slow dialup and I noted that area home prices are down 18% from their levels of 3 years ago. WOW! That means a home that sold for 200,000 in 2004, today would sell for 164,000! Now if you paid 200,000 for that home in 2004 and put a nice 10% down and borrowed the rest, well, you see where I'm headed. You borrowed 180,000 on a 30 year fixed and probably today owe 173,000 or so on that mortgage. Meanwhile Mister real estate man (or woman) is telling you your home is only worth 164,000. This is what we call a "short sale," where the homeowner actually brings money to the closing table to pay off their mortgage, their real estate costs and taxes, just to get out of the house and move on. This is why not only in Detroit, but nationally, we're in the fix we're in economically. Plus here in Metro Detroit, we've been in a big economic turndown for the past 3 years anyway and the rest of the country is just starting to catchup with us.

If you're not in a "short sale" situation, good for you! If you're thinking about trading in that old home for a newer, bigger model, remember, your home may be worth 18% less than it was 3 years ago, but, that new home you're planning on buying is worth 18% less as well! So it all comes out in the wash. If you're waiting for the price of your current home to rebound to 2004 levels, good luck. It will take YEARS for the current market to recover back to those 2004 price levels, so if your planning on selling and getting something bigger and better, remember what I just pointed out. That new bigger and better home will be at a nice bargain price as well!!

This and That, But Mostly That

It's September, time for football and baseball to take over our thoughts as the long summer days start to turn towards those cold winter nights. Real estate wise, I wonder how many people realize the second busiest real estate season, begins after Labor Day and lasts until Thanksgiving. When is the busiest real estate season? That's an easy one, March, April, May and part of June until the kids get out of school. Incidentally, if your wondering, it is still very much a buyers market, especially for first time buyers. They don't have to worry about selling their current home and there's some great deals to be had out there.

As far as sports, The Detroit Tigers seem to be tripping all over themselves to fall out of the pennant and wild cards races. Many are blaming things on manager Jim Leyland. Fans tell talk show hosts and sports forums that "Leyland has to go." That his strategies are "outlandish and nonsensical." Well, last season every move Leyland made turned to gold. This year, he makes those same moves in the same game situations and the moves all seem to backfire. Yet Leyland did not rip the 17 wins that Kenny Rogers posted last year out of the pitching rotation, nor did they give Garry Sheffield shoulder problems, which took him away just after the All Star break, leaving the Tiger offense in shambles since.

Then there's the Michigan Wolverines, losers to Appalachian State. Is it time for the Lloyd Carr era to end? He's given the university to much of his time and effort to not be able to call his own shot. However, the currently 38 year long Bo Schembechler era at the school, must end once Lloyd steps down and that means no promotion from within. New blood and fresh faces are needed. It's time to go outside the Wolverine family for a younger coach who can give the program a good 20 or so years, just as Don Canham went outside of the Wolverine family to name 39 year old Bo Schembechler head coach back in 1969.