More luxury homes are going on the market in Metro Detroit as sales accelerate.

**bailey** · November-12-12, 09:47 AM

Of the few glimmers of hope I had for this region was that this type of stupid development was dead, buried, and never to return. Guess I was wrong.

http://www.detroitnews.com/article/2...text|FRONTPAGE

**Honky Tonk** · November-12-12, 10:02 AM

Originally Posted by bailey

Of the few glimmers of hope I had for this region was that this type of stupid development was dead, buried, and never to return. Guess I was wrong.

Hey, If it worked once........

**michimoby** · November-12-12, 10:27 AM

http://www.youtube.com/watch?v=eKgPY1adc0A

**Detroitdave** · November-12-12, 10:27 AM

are you kidding me ? some people never learn.
wayyyyyy too much house, 5 bedrooms 5 baths. unless they have 4 kids whats the point , then you are still going to be stuck with it in 20 years once the kids are gone .
Didn't we already go through this ?

**Honky Tonk** · November-12-12, 10:28 AM

Originally Posted by michimoby

http://www.youtube.com/watch?v=eKgPY1adc0A

Ah yes, the Classics!

**Detroitnerd** · November-12-12, 11:13 AM

Just a lot of happy talk designed to force up prices and garner Realtors some commissions.

**Bham1982** · November-12-12, 11:50 AM

I will never get this sort of lifestyle either, and am mystified that it has returned so quickly.

Who on earth would spend over $2 million for a crappily constructed home in a township with poor services and declining schools? Why does anyone need 7500 ft.? What does that cost to heat in the winter?

I don't see how "normal people" [[meaning almost everyone, so household incomes below 200k and net worth below a million) want a home with more than 4,000 ft. What do you do with all that space?

If you're some millionaire baller, then good for you, but I don't understand your run-of-the mill professional, even with good incomes, buying some 5,000 square foot home in some godforsaken township, across from cows and trailer parks, and with all that space for nothing.

**Honky Tonk** · November-12-12, 11:56 AM

"across from cows"

What do you have against cows?

**gameguy56** · November-12-12, 12:07 PM

Originally Posted by Detroitnerd

Just a lot of happy talk designed to force up prices and garner Realtors some commissions.

Yeah, it reads like a puff piece.

**Bham1982** · November-12-12, 12:10 PM

Originally Posted by gameguy56

Yeah, it reads like a puff piece.

I think it is something of a puff piece, but the general theme [[the McMansions are returning) is correct, I think.

Anecdotally, I see lots of people buying into these new developments again, and the bulldozers are definitely rumbling. Go out to the exurban fringe, and construction is moving ahead again. I don't get it, but it seems to be deja vu.

Shollin · November-12-12, 12:32 PM

Originally Posted by Bham1982

I will never get this sort of lifestyle either, and am mystified that it has returned so quickly.

Who on earth would spend over $2 million for a crappily constructed home in a township with poor services and declining schools? Why does anyone need 7500 ft.? What does that cost to heat in the winter?

I don't see how "normal people" [[meaning almost everyone, so household incomes below 200k and net worth below a million) want a home with more than 4,000 ft. What do you do with all that space?

If you're some millionaire baller, then good for you, but I don't understand your run-of-the mill professional, even with good incomes, buying some 5,000 square foot home in some godforsaken township, across from cows and trailer parks, and with all that space for nothing.

I bet these people ask themselves why they should pay top dollar for a loft or apartment in Detroit, which has one of the highest violent crime rates of any large city in a developed nation, almost non existent city services, the worst schools in the nation, lack of retail, and a lack of clean and safe park space.

**DetroitPlanner** · November-12-12, 12:39 PM

These are almost as big and as ugly as the ones they are building in Detroit on the East Riverfront.

**Bham1982** · November-12-12, 12:39 PM

Originally Posted by Shollin

I bet these people ask themselves why they should pay top dollar for a loft or apartment in Detroit, which has one of the highest violent crime rates of any large city in a developed nation, almost non existent city services, the worst schools in the nation, lack of retail, and a lack of clean and safe park space.

And I would agree with them 100%. Possibly the only thing crazier than a million dollar McMansion in the cornfields would be a million dollar home in a Detroit slum [[at least from an investment perspective).

But 90% of the U.S. isn't cornfield townships or urban wastelands. It's not like our only choices are Brush Park or Brighton Township.

**mwilbert** · November-12-12, 01:42 PM

Originally Posted by Bham1982

And I would agree with them 100%. Possibly the only thing crazier than a million dollar McMansion in the cornfields would be a million dollar home in a Detroit slum [[at least from an investment perspective).

But 90% of the U.S. isn't cornfield townships or urban wastelands. It's not like our only choices are Brush Park or Brighton Township.

Exactly.You can't justify irrational behavior by pointing out that other people have their own irrational behavior.

**Lowell** · November-12-12, 01:43 PM

The housing market is recovering. Detroit-based Pulte Homes stock [PHM] has tripled in the past year to be one of the biggest gainers of the past 12 months. Pulte is the largest home builder in the US although, as that market is highly localized, it only has about 2% of the national share.

Let's not forget that while the economy and employment are slowly and fitfully improving, stock portfolios are zooming by comparison. So those with securities holdings are seeing their fortunes increasing and their consuming habits are responding.

As for buying luxury homes, the same could be asked about buying luxury cars. Who cares? I'm sure the economy and those whose jobs result from them don't mind. And we all know big dogs eat first, so seeing them chowing down bodes well for everybody else. That's the cold hard facts of American capitalism.

**bailey** · November-12-12, 01:46 PM

Originally Posted by Lowell

As for buying luxury homes, the same could be asked about buying luxury cars. Who cares? I'm sure the economy and those whose jobs result from them don't mind. And we all know big dogs eat first, so seeing them chowing down bodes well for everybody else.

It's not the "buying of luxury homes" that is the problem. It's the "buying of crappily built, mcmansions in ex-ex-urban cornfields in unsustainable developments all subsidized by state, county, and townships pro sprawl agenda".

Did we learn nothing from the last 5 years? These developments and the houses in them should be totally worthless....not merely selling at a discount.

**Bham1982** · November-12-12, 01:55 PM

Yeah, I'm not anti-luxury home construction.

I just don't personally understand the "mansion in farmland" phenomenon. It's not like these areas have good services, good schools, or really anything appealing outside of low taxes. They have horrible traffic, no stores or restaurants, and are a million miles from anything.

I have friends that bought in the Milford area, and to me, it's just awful. The schools aren't really good [[Wixom schools), there are no services [[good luck when it snows), traffic on I-96 is horrendous, and all the homes look like cardboard boxes. Their home is huge, but they can't afford to furnish all the rooms. It's supposedly "luxury living" but there are trailer parks and junkyards everywhere. Oh, well.

**bailey** · November-12-12, 02:04 PM

Originally Posted by Bham1982

Yeah, I'm not anti-luxury home construction.

I just don't personally understand the "mansion in farmland" phenomenon. It's not like these areas have good services, good schools, or really anything appealing outside of low taxes. They have horrible traffic, no stores or restaurants, and are a million miles from anything.

I have friends that bought in the Milford area, and to me, it's just awful. The schools aren't really good [[Wixom schools), there are no services [[good luck when it snows), traffic on I-96 is horrendous, and all the homes look like cardboard boxes. Their home is huge, but they can't afford to furnish all the rooms. It's supposedly "luxury living" but there are trailer parks and junkyards everywhere. Oh, well.

And that is precisely why whenever gas goes up a nickle and our local media hacks go running to a gas station on m59 to interview some exurban housefrau or joe lunch box about how outraged they are about how expensive it is to fill up the Yukon XL, I just laugh. Choices have consequences. How's that 4500 square feet in the middle of nowhere working out for you?

**Detroitnerd** · November-12-12, 02:19 PM

Originally Posted by Bham1982

I think it is something of a puff piece, but the general theme [[the McMansions are returning) is correct, I think.

Anecdotally, I see lots of people buying into these new developments again, and the bulldozers are definitely rumbling. Go out to the exurban fringe, and construction is moving ahead again. I don't get it, but it seems to be deja vu.

I don't think it's construction so much as sales. Maybe a few trucks show up to switch out fixtures or repair drywall or do work to spec, but I doubt we're talking bulldozers. There were plenty of unfinished subs in 2007 and why would anybody pay to build new unless they had an amazingly secluded site or special needs -- and a ton of money...

**poobert** · November-12-12, 02:22 PM

Metro Detroit is the US capitol for gauche. Quite a bit of money circulating around without enough taste to go with it. Tacky houses for tacky people.

When [[buyers) see how much they can afford

on a monthly basis," he said, "they realize they can afford a whole lot more house."

From The Detroit News: http://www.detroitnews.com/article/2...#ixzz2C2ODzz6V

Well doesn't that just say it all.

Sounds like people are going to be spending a lot more than they can afford. "Honey, it will only be $3,000 per month. We take home $5,000 between the two of us per month so that will be more than enough!!!"

**hybridy** · November-12-12, 04:59 PM

Originally Posted by poobert

Metro Detroit is the US capitol for gauche. Quite a bit of money circulating around without enough taste to go with it. Tacky houses for tacky people.

When [[buyers) see how much they can afford

on a monthly basis," he said, "they realize they can afford a whole lot more house."

From The Detroit News: http://www.detroitnews.com/article/2...#ixzz2C2ODzz6V

Well doesn't that just say it all.

Sounds like people are going to be spending a lot more than they can afford. "Honey, it will only be $3,000 per month. We take home $5,000 between the two of us per month so that will be more than enough!!!"

love those photos included. money can't buy taste!

**Detroitnerd** · November-12-12, 05:36 PM

The writer of this article probably didn't even see the flacks coming. They showed him a bunch of happy statistics and told him a happy story. They told him the story they want people to believe. His editors probably wanted to believe it too. Remember that last article like this, from July, written by Greta Guest? It had this quote:

“We have more demand than inventory in Oakland County,” said Darralyn Bowers, owner of Bowers & Associates in Southfield. “We have only good things to report this month.”

Then it admitted that home sales were down, and that, really, only the top-end homes were seeing price rises because they were the ones with multiple bidders and, actually, the news wasn't THAT great.

But I'll be damned if I didn't see this article posted on a wall at the real estate office where I bought my house last month! Real estate people need this kind of press so they can trick people into buying "more house" than they need because the buyers still subscribe to outdated notions about "affluent exurbs."

I really feel sorry for the guy who wrote that article. Where else does he have to turn for the real facts behind the BS? Naturally, real estate people are not going to talk about a pending supply of inferior housing kept off the market in "shadow inventories" to artificially stimulate prices and make buyers think things are looking up again. Of course, these real estate flacks aren't going to elaborate on how they're essentially suckering people into buying houses that will be largely worthless -- and likely falling apart -- by the time the mortgage is paid off, if ever.

Shollin · November-12-12, 05:51 PM

Where should these people be locating to if not in the outskirts?

**Hermod** · November-12-12, 05:54 PM

Originally Posted by Detroitnerd

Of course, these real estate flacks aren't going to elaborate on how they're essentially suckering people into buying houses that will be largely worthless -- and likely falling apart -- by the time the mortgage is paid off, if ever.

I wonder how much the value of "classic" Detroit homes has held up over the last seven years. What does it cost a year to heat and maintain those Boston Edison homes?

**Bham1982** · November-12-12, 06:03 PM

Originally Posted by Shollin

Where should these people be locating to if not in the outskirts?

The vast majority of Metro Detroit residents don't live in urban wastelands or the exurban fringe.

I'm not saying we should force people to move anywhere, but I personally don't understand why people prefer to pay big bucks for crappy construction in the middle of nowhere, instead of an established neighborhood in a nicer community.

For example, why not Farmington Hills instead of Milford? Taxes are higher, but almost everything else is better. I don't getting paying 500k to live next to junkyards and trailer parks.