While the media has traditionally painted a less than favorable picture of Detroit real estate, the fact is that there remains some very positive signs for the future of the industry, particularly for buyers and investors.
If you do your own research, you will find that there are many opportunities for investment that have yet to be discovered underneath the city's reputation. In fact, many real estate speculators have already begun to benefit from the Detroit real estate market's low prices, with other buyers sitting on the fence waiting for the market to reach even lower prices.
Now admittedly, Detroit's real estate market is plagued with serious problems that should not be overlooked by real estate investors, such as foreclosures, a lackluster local economy, high unemployment rates and crime. In spite of all this, the city has retained more than 99% of its population. This in itself is an indicator that there may be hope for the city yet.
The good news for buyers and investors is that there are many low-priced opportunities for investors who wish to purchase property in the city, with the prospect for profits a very real possibility. Many in the real estate industry believe that the widespread buyer confidence is an indicator that the future in the area-at least in terms of real estate-appears to be bright.
In fact, buyer activity in the city has increased significantly in the past few years, and many analysts expect that this trend may even spread to the surrounding areas. In the first four months of 2008 alone, sales of residential properties in the city went up by as much as 48% from 2007, according to sales statistics of residential properties published by the Michigan Association of Realtors.
The average price of these properties went down 56% to just a little over $20,000, with many of the sales being homes in neighborhoods with low employment rates. This was according to a report published by the Wall Street Journal in May of 2008.
A lot of the real estate purchasing activity in Detroit has admittedly been based on speculation, as real estate investors buy up entire street blocks of low priced properties in the hopes of the market experiencing an upswing. Nevertheless, even first-time buyers- who have traditionally held off on buying property until the market begins to look more favorable-are beginning to sit up and take notice.
It is important for real estate investors to realize that the potential for increased buyer is considerable. While it would be a good idea to keep a close watch on the market and wait for prices to hit bottom, waiting for the perfect time for the market to improve may result in a missed opportunity. One real estate analyst has even gone so far as to say that this is the ideal time to buy, with the market being so close to hitting bottom. Investors who wait for the bottom to hit before acting may realize that prices will rise up quickly.
Ephren W. Taylor II first revealed his extraordinary knack for making money at age 12 and he hasn't slowed down since. He was a self-made millionaire while still in his teens. In his twenties he became the youngest African-American CEO of any publicly traded company ever, City Capital Corporation (CTCC). Today Taylor and City Capital oversee tens of millions in assets for clients ranging from entertainment icons and pro athletes to church members and private companies. He is a dynamic speaker and author of the best seller "Creating Success from the Inside Out." Learn more at CashFreeInvesting.com, IRACashFlow.com or Ephren.com.
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