So the Detroit Free Press has finally jumped on the bandwagon and figured out that the local housing market is inundated with homes to sell. Signs of Sagging Demand is the headline and the article goes on to point to examples of homes on the market for a long time, one as long as two and a half years!
On one hand, it’s nice to be vindicated with regards to what I’ve been saying for at least the last nine months. On the other hand, it’s a shame that the reality of the market is just now trickling out into the mainstream. The Freep quotes the Office of Federal Housing Enterprise Oversight (OFHEO), stating that Michigan saw a property appreciation rate of 3.76%. While that is the lowest rank among the 50 states, it is still apace with inflation. The other bit of silver lining in that low ranking is that by slowing the rate of appreciation, Michigan housing becomes more affordable and attractive compared to other states. According to OFHEO’s numbers for the Detroit-Livonia-Dearborn area, it is the third most affordable major housing market.
So, Freep, How Do I Sell My Home?
From the article, “You can price a house at what the market wants and it can move in 30 days, or you can price it at what the seller wants and it will sit for nine months.” [ed. Or two and a half years!]
I’ve not been able to say it better than that.
[hat tip: Dad Waller]
Update: Go figure, I laud the local media for finally recognizing the housing market that we are in and the National Association of Realtors backs my opinion up further!