Plan to purchase a house in May 2013

**Wolverine607** · December-09-12, 11:44 PM

Hello everyone,

I am planning to purchase a house in May 2013. You may recognize me from the thread I started almost 1 year ago asking if home prices would go up in the next 2-3 years in Metro Detroit and there were so many replies and I kept bumping the thread up to much later this year [[each time something would come up that would cause me some severe worry and stress) with the latest reply being in September.

Well anyways, my time frame may be a bit ahead of schedule and I have pushed it forward a bit as may savings goal is a little [[due to cashing out on my mutual funds a week ago and getting more OT at work than I would have thought) ahead of schedule a little bit although only 2 months ahead of the 2 year time frame when I started this thread.

Now this will be a house I intend to pay cash for and that is the only option as I absolutely refuse to have a mortgage of any kind as I am a cash only person and hate any debt.

Now there are specific areas I will most likely be buying in:

*Sterling Heights [[Utica School District - Not because I care about the school district as I am not haivng childtren, but because the property taxes are almost 20% lower for an equal valued home for whatever reason in that section than Warren Consolidated school district)

*Waterford

*Auburn Hills [[May prefer Pontiac school district as taxes are lower for an equal valued house than in Avondale school district, although the difference is less than Utica vs Warren Consolidate in property taxes and Auburn Hills in Avondale is only like maybe 10% higher than in Pontiac school district)

These are the 3 areas I will most likely be buying in. Reason being is these areas are within a reasonable commute distance to my job, they have lots of homes in my price range, and they have low property taxes. Those 3 reasons are the most important.

I calculated property taxes here: https://treas-secure.state.mi.us/pte...testimator.asp

No I do not know how accurate that is and if any of these areas have an extra hidden property tax that is not part of the normal city tax that I should be aware of?

Now as I get ever so closer, and continue to hold my breath ensuing my price range is safe for these areas with only 5.5 short months to go, how am I looking? As some have stated the home prices and where they are headed and by how much has so much to so with the areas you are looking at. So the focus being specific on these areas, how am I looking with only 5.5 short months to go.

Here is what I am looking for in one of these areas:

*1000-1300 square feet brick starter home with a small or bigger basement and a 1.5-2 car garage on a small lot built in the 1960s or newer [[Bigger home on bigger lot would be fine as long as it was still in my price range and in good condition in a decent or better neighborhood)

*Neighborhood has to be decent or better and safe and reasonably well kept up – Does not have to be perfect in terms of up keep/neighbors taking care of lawn, but it has to be reasonable and cannot be severely run down [[Vanilla landscaping is totally fine and maybe even preferred. I define vanilla landscaping as having an almost all grass lawn with a little simple plants)

*Little to no home owner’s association fee [[0 to $100 per year)

*Maximum price range of $95K to $125K [[preferably no higher than $120K) for an up to date in good condition, well taken care of mostly up to date home in move in condition [[such as having newer furnace, water heater, stove, kitchen, roof, etc so things work and will last a long time after moving in)

OR

*Fixer upper home for maximum price range of $60K to $85K in a neighborhood of $95K to $125K homes that are all reasonably well kept and in good condition. This would be a home in such a neighborhood that say needed some work such as a new kitchen, water heater, furnace, bathroom, roof, etc… and some of it could be done myself with the help of my dad and brother and maybe hiring someone to do some of it so the cost of any needed labor and materials would be no higher than $40K to $60K thus making the finished product right back into my price range and in line with the quality of the homes in the neighborhood

[[An in between of the 2 above scenarios also works)

So how am I looking? It seems highly unlikely that much could change in the market in 5.5 short months, although the stress and worries still persist for me over the what ifs. But the closer I get, the safer it feels from the evil wrath of rising home prices that would push my price range to the brink or shatter it all together for what I am looking for. Although even over 6 months ago, I knew it was probably pretty unlikely that home prices would go up that much to threaten my price range in just 1 to 1.5 years, the worries still persisted and some things I would read would make me feel on the edge of my seat and cause a great deal of stress and panic wondering whether my price range was in trouble or not when my time came? Fortunately, it seems that much of the scary news about possible violent price increases have mostly been in upper tier prestigious areas like the west side of Royal Oak, Birmingham, Plymouth, certain pockets of Troy and Rochester Hills, and Grosse Pointe which are areas that were too expensive for me to begin with anyways and some of them way too far away and also some of them had too high of property taxes for my liking.

Since the focus is now specific to these areas of Sterling Heights, Waterford,, and Auburn Hills, what trends have you noticed just regarding these areas? Anything disturbing, or do you think I am well on track for what I am looking for in one of these areas in 5.5 short months in my price range?

Also, how is the foreclosure situation? Are there still plenty of foreclosures coming onto the market and stuck in a pipeline through court proceedings that will continue to be released to the market at least through May 2013 and beyond? I have done my own research and it seems like it, but cannot really tell for sure. It is a bit disturbing that foreclosures filings were done significantly year over year, but it seems based on how real estate is a slow process with only 5.5 months to go for me, the effects of that would not be noticed until 2014 and it would seem there should still be plenty of foreclosures coming to the market gradually form the pending backlog gradually month over month at least for another 6 months or so, but I cannot really tell or know for sure? What do you think?

And also, how much do you know about those areas? Are there any bad pockets/neighborhoods of these areas that should be avoided?

Also, do you foresee any threat of greedy scumbag investment companies buying up properties and creating an artificial shortage that could drive prices up to shatter my price range for what I am looking for in such a short time. I read in another thread here shortly that it was hard to buy home sin certain pockets of the city of Detroit and someone mentuioned that a property was purchased by some company in Florida. which leads me to believe and also have heard rumors of companies in Florida doing it to properties throughout much of the country. These kind of companies doing that are flat out scumbags who are as bad as people like Bernie Madoff and far worse than stock market insider traders. Yes, I am that emotional about paying cash and getting a starter in my price range when my time comes and it is of utmost important to me. I have no problem with people who buy second properties for vacation purposes or for the purpose of giving it to their kids one day. But investment firms buying them up to drive an artificial shortage and turn them into rentals and then hope prices are driven way up past the reasonable where they should be $95K to $125K range for nice starter homes in a few years in good neighborhoods and sell them one day at a much higher price than that are evil scumbags as bad as people like Bernie Madoff.

**mwilbert** · December-10-12, 12:07 AM

I don't know much about those towns, so I won't say anything except that you are very sensible to include commuting time among your most important criteria. Studies indicate that people generally underestimate how much increasing commuting time negatively affects happiness.

**p69rrh51** · December-10-12, 01:12 AM

You want quite a bit, but might able to find what you want for the price range with some hard work.
On the flip side you do know this site is typically very anti-suburb? Look for a good realtor who knows the area/s you are interested in.

**Honky Tonk** · December-10-12, 03:25 AM

Originally Posted by Wolverine607

Hello everyone,

I am planning to purchase a house in May 2013. You may recognize me from the thread I started almost 1 year ago asking if home prices would go up in the next 2-3 years in Metro Detroit and there were so many replies and I kept bumping the thread up to much later this year [[each time something would come up that would cause me some severe worry and stress) with the latest reply being in September.

Well anyways, my time frame may be a bit ahead of schedule and I have pushed it forward a bit as may savings goal is a little [[due to cashing out on my mutual funds a week ago and getting more OT at work than I would have thought) ahead of schedule a little bit although only 2 months ahead of the 2 year time frame when I started this thread.

Now this will be a house I intend to pay cash for and that is the only option as I absolutely refuse to have a mortgage of any kind as I am a cash only person and hate any debt.

Now there are specific areas I will most likely be buying in:

*Sterling Heights [[Utica School District - Not because I care about the school district as I am not haivng childtren, but because the property taxes are almost 20% lower for an equal valued home for whatever reason in that section than Warren Consolidated school district)

*Waterford

*Auburn Hills [[May prefer Pontiac school district as taxes are lower for an equal valued house than in Avondale school district, although the difference is less than Utica vs Warren Consolidate in property taxes and Auburn Hills in Avondale is only like maybe 10% higher than in Pontiac school district)

These are the 3 areas I will most likely be buying in. Reason being is these areas are within a reasonable commute distance to my job, they have lots of homes in my price range, and they have low property taxes. Those 3 reasons are the most important.

I calculated property taxes here: https://treas-secure.state.mi.us/pte...testimator.asp

No I do not know how accurate that is and if any of these areas have an extra hidden property tax that is not part of the normal city tax that I should be aware of?

Now as I get ever so closer, and continue to hold my breath ensuing my price range is safe for these areas with only 5.5 short months to go, how am I looking? As some have stated the home prices and where they are headed and by how much has so much to so with the areas you are looking at. So the focus being specific on these areas, how am I looking with only 5.5 short months to go.

Here is what I am looking for in one of these areas:

*1000-1300 square feet brick starter home with a small or bigger basement and a 1.5-2 car garage on a small lot built in the 1960s or newer [[Bigger home on bigger lot would be fine as long as it was still in my price range and in good condition in a decent or better neighborhood)

*Neighborhood has to be decent or better and safe and reasonably well kept up – Does not have to be perfect in terms of up keep/neighbors taking care of lawn, but it has to be reasonable and cannot be severely run down [[Vanilla landscaping is totally fine and maybe even preferred. I define vanilla landscaping as having an almost all grass lawn with a little simple plants)

*Little to no home owner’s association fee [[0 to $100 per year)

*Maximum price range of $95K to $125K [[preferably no higher than $120K) for an up to date in good condition, well taken care of mostly up to date home in move in condition [[such as having newer furnace, water heater, stove, kitchen, roof, etc so things work and will last a long time after moving in)

OR

*Fixer upper home for maximum price range of $60K to $85K in a neighborhood of $95K to $125K homes that are all reasonably well kept and in good condition. This would be a home in such a neighborhood that say needed some work such as a new kitchen, water heater, furnace, bathroom, roof, etc… and some of it could be done myself with the help of my dad and brother and maybe hiring someone to do some of it so the cost of any needed labor and materials would be no higher than $40K to $60K thus making the finished product right back into my price range and in line with the quality of the homes in the neighborhood

[[An in between of the 2 above scenarios also works)

So how am I looking? It seems highly unlikely that much could change in the market in 5.5 short months, although the stress and worries still persist for me over the what ifs. But the closer I get, the safer it feels from the evil wrath of rising home prices that would push my price range to the brink or shatter it all together for what I am looking for. Although even over 6 months ago, I knew it was probably pretty unlikely that home prices would go up that much to threaten my price range in just 1 to 1.5 years, the worries still persisted and some things I would read would make me feel on the edge of my seat and cause a great deal of stress and panic wondering whether my price range was in trouble or not when my time came? Fortunately, it seems that much of the scary news about possible violent price increases have mostly been in upper tier prestigious areas like the west side of Royal Oak, Birmingham, Plymouth, certain pockets of Troy and Rochester Hills, and Grosse Pointe which are areas that were too expensive for me to begin with anyways and some of them way too far away and also some of them had too high of property taxes for my liking.

Since the focus is now specific to these areas of Sterling Heights, Waterford,, and Auburn Hills, what trends have you noticed just regarding these areas? Anything disturbing, or do you think I am well on track for what I am looking for in one of these areas in 5.5 short months in my price range?

Also, how is the foreclosure situation? Are there still plenty of foreclosures coming onto the market and stuck in a pipeline through court proceedings that will continue to be released to the market at least through May 2013 and beyond? I have done my own research and it seems like it, but cannot really tell for sure. It is a bit disturbing that foreclosures filings were done significantly year over year, but it seems based on how real estate is a slow process with only 5.5 months to go for me, the effects of that would not be noticed until 2014 and it would seem there should still be plenty of foreclosures coming to the market gradually form the pending backlog gradually month over month at least for another 6 months or so, but I cannot really tell or know for sure? What do you think?

And also, how much do you know about those areas? Are there any bad pockets/neighborhoods of these areas that should be avoided?

Also, do you foresee any threat of greedy scumbag investment companies buying up properties and creating an artificial shortage that could drive prices up to shatter my price range for what I am looking for in such a short time. I read in another thread here shortly that it was hard to buy home sin certain pockets of the city of Detroit and someone mentuioned that a property was purchased by some company in Florida. which leads me to believe and also have heard rumors of companies in Florida doing it to properties throughout much of the country. These kind of companies doing that are flat out scumbags who are as bad as people like Bernie Madoff and far worse than stock market insider traders. Yes, I am that emotional about paying cash and getting a starter in my price range when my time comes and it is of utmost important to me. I have no problem with people who buy second properties for vacation purposes or for the purpose of giving it to their kids one day. But investment firms buying them up to drive an artificial shortage and turn them into rentals and then hope prices are driven way up past the reasonable where they should be $95K to $125K range for nice starter homes in a few years in good neighborhoods and sell them one day at a much higher price than that are evil scumbags as bad as people like Bernie Madoff.

I'll find the perfect house for you. It'll fit all of your stated criteria. It might take me a day or two, so hold your breath.

**Chicago48** · December-10-12, 07:07 AM

Originally Posted by Honky Tonk

I'll find the perfect house for you. It'll fit all of your stated criteria. It might take me a day or two, so hold your breath.

Seems with your essay-like request for home reco's you would instead get a RE agent to help you.

**Bham1982** · December-10-12, 08:08 AM

A real estate agent costs you nothing and does all the work for you.

Just speaking generally, I don't think your overall strategy is the one I would use. Your potential investment returns are almost certain to be much better than your mortgage costs.

I wouldn't buy all cash even if I had the money. That isn't very "safe", IMO. Muni bonds and the like are "safe".

I also wouldn't rely on current property taxes as some magic barometer. Property taxes can be highly variable over time, depending on a municipality's financial state.

Personally, I'm not a huge fan of those localities, but of the ones you're considering, I would go with Sterling Heights, as long as it's Utica Schools.

I would not buy anywhere in Pontiac or Waterford.

**Gannon** · December-10-12, 08:33 AM

Exactly HOW does a real estate agent cost NOTHING?!

They don't work for free.

They merely hide their fees in the seller's price, which the BUYER pays.

I'll take the seven percent discount and do the research myself, thanks! This cat needs one, though, if only to calm his panic and doubting.

Cheers

**Gannon** · December-10-12, 08:36 AM

And you'd rather be a slave to a mortgage than freely holding property [[other than taxes)?! That is totally idiotic, but standard practise...sheople need to be held down. They try to tell you that the price you pay for mortgage money is SO cheap, you might as well invest the rest in other investment vehicles...which are also owned by the mortgage holders. They oddly NEVER tell you the price for freedom from all that slavery...they just tell you the payments and the term.

**Bham1982** · December-10-12, 08:40 AM

Originally Posted by Gannon

Exactly HOW does a real estate agent cost NOTHING?!

They don't work for free.

They merely hide their fees in the seller's price, which the BUYER pays.?!.

I didn't say real estate agents work for free. I said the seller pays all real estate fees, which is true.

At least in Michigan, as a buyer, there is no benefit to not taking a real estate agent. You don't save a penny.

When I bought, the real estate agent driving me everywhere [[I visited over 60 homes) was a big money and time saver. I also benefitted from her viewpoints, however biased.

**Bham1982** · December-10-12, 08:43 AM

Originally Posted by Gannon

And you'd rather be a slave to a mortgage than freely holding property [[other than taxes)?! That is totally idiotic, but standard practise...sheople need to be held down.

Hell yeah. I love being a "slave" at 3%, interest fully deductable, when my annual investment returns have been 10-15%

**Honky Tonk** · December-10-12, 08:47 AM

Originally Posted by Gannon

Exactly HOW does a real estate agent cost NOTHING?!

They don't work for free.

They merely hide their fees in the seller's price, which the BUYER pays.

I'll take the seven percent discount and do the research myself, thanks! This cat needs one, though, if only to calm his panic and doubting.

Cheers

Self research isn't for everybody, some people are better off paying someone else to do it for them. To me, it sounds like this person needs to do one or the other before posting.

**DetroitPlanner** · December-10-12, 09:18 AM

1. Low taxes should not be a factor in where to buy. Low taxes can often equate to having substandard schools, and substandard school districts are not desirable when you want to sell. Besides the difference is marginal particularly when you consider the incomes tax implications.

2. If you really want to save money you should invest in an area with low travel costs to work. Often times this means living a short-distance from your employment or along a transit corridor. The cost of oil is a heck of a lot more volatile than the property tax rate, and you get no tax savings from spending an extra $1,500-$2,500 a year in commute costs.

**Hermod** · December-10-12, 09:27 AM

Originally Posted by Bham1982

I wouldn't buy all cash even if I had the money. That isn't very "safe", IMO. Muni bonds and the like are "safe".

Yeah, Bham, dash out and buy yourself a whole bundle of City of Detroit General Obligation Bonds.

The DYes crowd would love to see you take a big haircut with bankruptcy.

**gnome** · December-10-12, 09:27 AM

I believe that, in Michigan, real estate agents are required - by law - to represent the best interest of the seller. I am sure there are experts here who know more about Buyer's Agent fees, but I think true real estate experts who negotiate on behalf of buyers are rare.

whatever the OP does, he better get a professional house inspection.

**gnome** · December-10-12, 09:36 AM

Originally Posted by DetroitPlanner

1. Low taxes should not be a factor in where to buy. Low taxes can often equate to having substandard schools, and substandard school districts are not desirable when you want to sell. Besides the difference is marginal particularly when you consider the incomes tax implications.

2. If you really want to save money you should invest in an area with low travel costs to work. Often times this means living a short-distance from your employment or along a transit corridor. The cost of oil is a heck of a lot more volatile than the property tax rate, and you get no tax savings from spending an extra $1,500-$2,500 a year in commute costs.

Excellent points. Here is a site whereby you can calculate your commuting costs. If looks pretty helpful. Check it out:

http://www.costofcommuting.com/refer...895fa626610724

**Honky Tonk** · December-10-12, 09:44 AM

Originally Posted by gnome

I believe that, in Michigan, real estate agents are required - by law - to represent the best interest of the seller. I am sure there are experts here who know more about Buyer's Agent fees, but I think true real estate experts who negotiate on behalf of buyers are rare.

whatever the OP does, he better get a professional house inspection.

When I hired one, his commision, [[fee), was based on a percentage of the sale. Looking back @ all the time, effort, and money lost, before I hired him, I wish I had done it sooner.

**gazhekwe** · December-10-12, 09:46 AM

Wolverine, good luck to you. Of the three sites you listed, I prefer Waterford, just because I am a Westside gal. There is a wide range of housing there, but prices may be on the higher side in some areas close to lakes. Auburn Heights isn't bad in my book either, because it is close to Oakland U. They have recently fixed up a little downtown area which I also like.

I agree with you, no mortgage. The crash of real estate in the last few years sure made that a good thing. However, when real estate is going up, a mortgage can be sensible, leaving you cash to invest at a higher return than the mortgage is costing you.

Schools are important whether you intend to use them or not, because they seriously affect resale value of your home.

I agree with those who are recommending a short commute with multiple routes available. Where will you be working?

**Packman41** · December-10-12, 10:07 AM

Originally Posted by gnome

I believe that, in Michigan, real estate agents are required - by law - to represent the best interest of the seller.

Michigan is a Dual Agency state. Meaning a real estate licensee can be the agent of both the seller and the buyer in a transaction, but only with the knowledge and informed consent.

You need to find a Buyer’s Agent and they are far from rare.

Under a buyer's agency agreement with the buyer, they act solely on behalf of the buyer. Buyer's agents and their subagents will disclose The duties a buyer's agent and subagent owe to the buyer include: [[1) promoting the best interests of the buyer [[2) fully disclosing to the buyer all facts that might affect or influence the buyer's decision to tender an offer to purchase [[3) keeping confidential the buyer's motivations for buying [[4) presenting all offers on behalf of the buyer [[5) disclosing to the buyer all information known to the buyer's agent about the willingness of the seller to complete the sale or to accept a lower

http://www.innmarketing.com/disclosu...disclosure.pdf

+1 on avoiding the Pontiac school system

+1 on avoiding investing in Muni Bonds, especially with cities such as Detroit

+1 on the home inspection

+1 on NOT paying cash. Hedge your bet – get a 50% down loan at a very low interest rateand short [[15 to 20) year amortization. IMHO your stock, bond, gold, etc. investments will earn you a MUCH better return than on any real estate you will buy in Michigan.

If you are as stressed as you say you are, then maybe you should rent your first home – stay flexible.

Shollin · December-10-12, 10:40 AM

I live in Sterling Heights. It's safe and quiet and the city is able to provide adequate services. I work in Troy and the commute isn't bad. It's cheaper than Troy and you get similar neighborhoods.

**Packman41** · December-10-12, 11:32 AM

Originally Posted by Wolverine607

...SNIP...
Also, do you foresee any threat of greedy scumbag investment companies buying up properties and creating an artificial shortage that could drive prices up.

Greedy scumbag investors?? Why all the hate?

“…creating an artificial shortage…” Don’t worry about that. Both the CofD and Michigan population counts continue to decline. So I guess you might say they are creating an artificially low demand.

BTW, investors are doing nothing illegal quite unlike Bernie Madoff and illegal insider trading – they are subject to free market forces. Additionally, they possibly helping to regenerate a neighborhood. Are the investor/developers in mid-town, or Dan Gilbert really the scumbag felons you invision?

Frankly speaking, if you ever think someone is making too much money with a [[LEGAL) investment, then you should mimic it and make your own investments work harder. A long time ago, when energy costs were rapidly increasing, I was bitching about the gas and electric bills. Well, if they were making too much money off me, I would beat them at there our game. I decided to buy DTE stock and MichCon stock in order to help pay those bills. Beat them at their own game.

In economics 101 you will learn this lesson: “profit tends to breed competition, and excess profit breeds ruinous competition.”

**gnome** · December-10-12, 12:38 PM

Originally Posted by Honky Tonk

When I hired one, his commision, [[fee), was based on a percentage of the sale. Looking back @ all the time, effort, and money lost, before I hired him, I wish I had done it sooner.

This is a point I do not understand. What is the financial motivation for a Buyers Agent to get you a $96,000 deal when he/she gets a higher commission on $100k?

while those figures are hypothetical, the notion is that a Buyers Agent makes their dough off a commission - not a fee.

for example, it would seem more transparent if you'd hire an agent, pay them either a flat fee or and hourly fee, to run interference for you. A flat fee of say $2,500 would motivate the Buyers Agent to work as fast as possible, whereas an hourly fee would motivate the Buyer to decide as fast as possible.

Either way, the Agent would not get their taste from the sale price.

As Packman41 pointed out there are Agents who do double duty, but I am dubious as to the purity of their motivation.

**Honky Tonk** · December-10-12, 12:52 PM

Originally Posted by gnome

This is a point I do not understand. What is the financial motivation for a Buyers Agent to get you a $96,000 deal when he/she gets a higher commission on $100k?

while those figures are hypothetical, the notion is that a Buyers Agent makes their dough off a commission - not a fee.

for example, it would seem more transparent if you'd hire an agent, pay them either a flat fee or and hourly fee, to run interference for you. A flat fee of say $2,500 would motivate the Buyers Agent to work as fast as possible, whereas an hourly fee would motivate the Buyer to decide as fast as possible.

Either way, the Agent would not get their taste from the sale price.

As Packman41 pointed out there are Agents who do double duty, but I am dubious as to the purity of their motivation.

Valid points, because after all, they are sales people. You have to look @ the contract, and you have to find the right agent, which I did after several attempts. I made the deal up front, and we both signed a contract. Sometimes they split the fee with the sellers agent, sometimes there is an additional percentage, [[fee), if 2 agents are involved, it varied in my instance. Yes, it hurt to pay the money, but I was going nowhere on my own, and this guy was conscientious.

**Wolverine607** · December-13-12, 08:56 PM

Are the investor/developers in mid-town, or Dan Gilbert really the scumbag felons you invision?

No absolutely not. The ones who buy starter homes in bad areas for like $10K-$40K and fix them up and then revitalize neighborhoods to make them good again and then sell the homes for $90K to $125K if the neighborhood becomes a good place to live again in the long term future.

Even the ones who buy a 1200 SF fixer upper for say like $50K in a good neighborhood where good condition starter homes are going for $95K to $125K and say spending like $30K to fix up the fixer upper so it is now really nice and then selling it for $115K are also fine because the homes are still in the reasonable range for what a good starter home in a good neighborhood should should cost. Prices even modestly above that range for a starter home in good condition are very unreasonable and unaffordable for the middle class, especially those savers who worked hard for a long time saving looking to pay cash.

The scumbags are the ones who buy a nice starter home in good condition in a good neighborhood for $100K to $120K and then rent it out for some very high rate and buy more of those types of homes up in hopes of creating a shortage and driving up the prices of starter homes to the very unaffordable $165K or higher prices. Even much above $130K is pushing it IMHO for a reasonable price for a starter home 900 to 1300SF.

Even worse are the ones in Phoenix who actually bid many starter homes past the affordable price range in the last 6 months.

creating an artificial shortage…” Don’t worry about that. Both the CofD and Michigan population counts continue to decline. So I guess you might say they are creating an artificially low demand.

I know the City of Detroit population has continued to decline, but what about Oakland and Macomb County. That is where I will be buying is in one of these places.

http://en.wikipedia.org/wiki/Macomb_County,_MI

http://en.wikipedia.org/wiki/Oakland_County

It says the population in those areas grew from 2000-2010, although barley if any in Oakland County, but like 6.7% from 2010-2010 in Macomb County

And this news is potentially scary:

http://www.detroitnews.com/article/2...xt|FRONTPAGE|s

Really. foreclosures the lowest since 2006? Wasn't 2006 the peak of the housing bubble? Does this news pose a significant threat of fast price increases in the next 5 months? Or are foreclosures still very high by historical standards despite the news?

And I have talked to a realtor and she just told me to sit tight and that the market is hot at the moment and that inventory is very low and prices are still relatively low and if I plan to purchase in May, to come back and talk to her in March. She said a lot can change between now and May and it is impossible to predict the future and also that my dream home probably is not even listed yet because most sellers list in the Spring.

The talk among many realtors about their being low inventory and buyers chasing many homes does make me a bit uneasy.

**mwilbert** · December-13-12, 10:04 PM

There is always more selection in the spring. The key to getting a good deal on a house is not to fall in love with a particular house, and not to be in a hurry. The market is very unlikely to run away to the upside, you just have to be patient.

**Bham1982** · December-13-12, 10:16 PM

Originally Posted by Wolverine607

I know the City of Detroit population has continued to decline, but what about Oakland and Macomb County. That is where I iwll be buying is in one of these places.

Population growth is a good metric, though I would look more at household growth, housing inventory, and new housing growth.

In any case, neither Oakland or Macomb are growing enough that you need to be worried. I'm in arguably the hottest housing market in Oakland County, and, even here, if it isn't priced right, it doesn't move.

Metro Detroit households are probably shrinking, and housing stock is probably growing, so no worries about a shortage.