Tuesday, January 17, 2006

Metro home sales tank - 01/17/06 - The Detroit News

This is cheerful. In the Detroit News today, a big piece about what people who follow Detroit real estate have suspected for a while now: our market blows. According to the article, median selling prices are dropping (bad); time houses are on the market is inceasing (bad); and two thirds of Michigan moves (according to United Van Lines) in 2005 were outbound (really bad).

Oh yeah, interest rates are rising. Combined with our lousy car-based economy, it's apparent that even less than 5% through the year that we're not going to have a fun 2006 here.

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4 comments:

Lauren said...

Which is worse? Owning a home in a tanking market, or paying $2000/mo. for a 2 bedroom, rented apartment in a so-so neighborhood in San Francisco?

Jonathan said...

I think owning a home in a tanking market is worse. At least San Francisco's a fun place to live. Now Detroit is not a fun place to live, and it's depreciating.

Maybe we should buy a second house in Michigan to live in, rent the current one, and sell it when the market improves?

Lauren said...

Maybe we should win the lotto.

Jonathan said...

Maybe we should pay for the current mortgage with rental income, freeing us to buy a house we really want to live in.