Profile picture for Unicornz0

Suburban Detroit MI Housing Prices Artificially High?

 
I have
  • October 31 2011 - Livonia
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Answers (2)

Profile picture for sunnyview
I think that your rationale is valid, but I do not know your area so it is hard to say if that is the reason for the price floor you describe. If I were you, I would consider the buy cost, but focus on the fair market rent in relation to PITI. At least. that provides you with some protection against market drops.
  • November 01 2011
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Profile picture for Unicornz0

I've been thinking about buying a house in one of the western suburbs of Detroit . The houses that I'm interested in are currently selling for $100,000-150,000. These prices seem to be reasonable compared to the selling prices BEFORE the housing crash. But I think they are grossly over priced now. I'm thinking that HUD, Fannie Mae, and Freddie Mac, with their very low down payment requirements are keeping the prices artificially high.
 
Even though some think of the suburbs as distinctly different from Detroit , I see the entire Detroit–Warren–Livonia MSA as one big neighborhood. Now that the new middle class and auto industry wage seems to have a high of about $14.00 dollars per hour, I don't think it will be affordable for many buyers, if I decide to sell this house in the future,
 
I'd like to know what others think about my concern.
 
Thanks In Advance For Your comments,
Uni

  • October 31 2011
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