Nope, I am not entering the bubble domain and heading over to the dark side of the real estate bubble bloggers.
Fortune Magazine recently put out a list of the top 10 housing markets ready for a fall. Note that Michigan is NOT on the list. Honestly it is probably because we’ve already ‘been there and done that.’ In Oakland County and South East Michigan we are on the other side of a correction and now other markets are seeing what we experienced in 2006 when we went through it ourselves.
| Fortune magazine’s list of 10 housing markets ready for a fall: | ||||
| Market | 2007 projected price change | 2008 projected price change | ||
| Stockton, Calif. | -7.1 percent | -5.3 percent | ||
| Las Vegas | -6.6 percent | -8.1 percent | ||
| Bakersfield, Calif. | -5.5 percent | -6.6 percent | ||
| Santa Ana-Anaheim, Calif. | -5.5 percent | -4.5 percent | ||
| Los Angeles-Long Beach | -5.4 percent | -4.6 percent | ||
| Miami-Miami Beach | -4.9 percent | -7.5 percent | ||
| Sarasota-Bradenton, Fla. | -4.8 percent | -0.8 percent | ||
| Oakland, Calif. | -4.6 percent | -2.4 percent | ||
| Fresno, Calif. | -4.6 percent | -4.3 percent | ||
| Fort Lauderdale, Fla. | -4.3 percent | -4.3 percent | ||
And there is EVEN BETTER NEWS FOR METRO DETROIT in the Fortune report
Fortune says that while we missed the rapid appreciation of other markets in recent years, we are DONE with the back slide. They predict modest price appreciation in the Metro Detroit market in 2006. I, for one, am happy to see that in the national press, and from a respected source like Fortune. For 2007 Fortune sees prices here appreciating by 0.6% and in 2008 by 1.6%.
Now can someone answer this question? How come buyers make the phone ring off the hook when the market is sizzling? Nobody wants to miss a boom. So they are calling when prices are rapidly escalating. Now that prices are stable to increasing a rational investor should be making a move in to the market instead of waiting for the day when everybody else is doing it.
Thanks to TheRealEstateBloggers.com for pointing us over to the Fortune Article.
Technorati Tags: metro detroit real estate market, oakland county real estate, real estate market projections for 2006, oakland county home sales
Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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{ 5 comments… read them below or add one }
geno petro 01.11.07 at 6:39 pm
Hi Maureen, I’ve noticed a big surge in Buyer activity here in Chicago these last several days. I’m calling it a return to my ‘Pre-Blog Days’ of spring and summer. Hope I have time to keep writing.
Maureen Francis 01.11.07 at 7:31 pm
I would miss your great blog, Geno. But clients come first for me too.
Carole 01.12.07 at 8:32 am
Maureen, that is a great question to pose to buyers. The Tickle Me Elmo Theory: we only want what we want when there isn’t a huge supply?
Monika 01.12.07 at 11:05 pm
I sure hope we see an upswing soon. Huge supply…no buyers.
Mariana Wagner -Colorado Springs 01.14.07 at 4:01 am
Maureen- Your question is so true! It does not make sense. You would think that buyers would be less gun shy in a more buyer-friendly market… ?