Looking for Post-Holiday Bargains? Try Detroit Real Estate
By Richard BarringtonLocal Lender Columnist
May 29, 2008
If you are looking for a good bargain, forget about coupons and rebates, and don't bother jostling with the crowds at post-holiday sales. The best bargain in Detroit might be housing prices. Throw in lower mortgage rates and it's really looking like a buyer's market.
Detroit Housing Prices Fall Sharply
As the old saying goes, things are tough all over, so a decline in housing prices may not strike you as surprising. Indeed, housing prices were down nationally, but Detroit's decline was twice the national rate.The rate of Detroit's drop in housing prices over the past year tied it for third among the worst declines in the country, putting Detroit in the company of other loss leaders such as San Diego, Tampa, and Miami. However, whereas those metropolitan areas all had run-ups of 90% or more in housing prices over the preceding five years, Detroit's increase over that period was a modest 9.9%. In other words, the past year's prices declines essentially wiped out all the increases in Detroit home prices over the previous five years.
The bottom line: Detroit home shoppers can now buy at 2001 prices.
Mortgage Rates Lower, But for How Long?
Mortgage rates also add to the bargain environment, as those rates fell significantly from July to December of 2007. The one thing to remember is that housing prices and mortgage rates can be notoriously volatile, so things may not stay the same for long. For example, recent inflation figures may put upward pressure on mortgage rates, so Detroit shoppers who are in the market for a home--and a bargain--may want to act while conditions are in their favor.Sources:
About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.