Inman News, a news service that specializes in real estate news, has an article about this housing market bubble that we are supposedly experiencing. The article points out what you’ve read here before; we are not experiencing a bursting bubble. While Michigan has some unique circumstances, to be sure, we are by no means poised to see drastic valuation decreases in our property values.
The Silver Lining
While parts of the country **cough** the coasts **cough** are just now beginning to see cooling in their real estate markets, Michigan is set to benefit.
By way of example, let’s consider Traverse City, Michigan. Recently, the airport runway was extended. Why is this important to real estate values in Michigan? Historically, waterfront property in Michigan has been the most affordable across the country, and let’s face it, Traverse City is a great place to vacation. With respect to Traverse City, it was just difficult for someone from the coasts or down south to get to there, aside from driving. With the extension of the runway, larger planes can now land in T.C., bringing folks from all over, and, in some cases, on a non-stop flight. Now, because of the relative ease with which folks can get to Traverse City, I expect property values to begin a steady incline; especially any available waterfrontage in T.C. or nearby.
How does this apply to the rest of Michigan?
Compared to the rest of the country, Michigan’s property values are nearly bargains. In 2005, Michigan was ranked 50th in property appreciation rates with a statewide rate of just 3.76%.
What’s the addage when considering buying stock? Buy low, sell high?
Anybody got some spare change?