Recently, there was an article on a popular website that postulated there are 10 cities in the US which are experiencing housing price rebounds. I’m not an expert on the national real estate climate, and I can’t speak to the state of other markets, but here in Michigan, I can safely say that housing prices are not rising.
The author of the article theorized that when prices hit their lowest, the only place they can go is up. I understand his point completely, but I would argue there is an alternative: stagnancy.
Due to the vast amount of variable rate mortgages and bad loans written in the last decade, coupled with the recession, people are still losing houses to Michigan foreclosures. This means that there are a lot of bank-owned properties priced low to sell quickly. This is affecting and lowering property values in all types of neighborhoods and areas.
The good news is that houses are still being purchased, due to low interest rates and first time home buyer tax credits. These are positives, but the negatives remain, and probably will continue to do so for several years.
Property values are low, and many people owe more than the house is actually worth. For some people, it’s an inconvenience if they can still afford to make their payments, and it is always advised that they do so. For those who cannot make their payments, there’s a lot of information on this website about the options available; or you may give us a call.
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