More GM employees moving to HQ from NY

**DetroitPlanner** · May-22-13, 10:15 AM

Originally Posted by Bham1982

That's exactly what I was thinking, LOL. 80%-90% discount.

The disadvantage, of course, is that the real estate doesn't appreciate much around here. You bought 10 years ago here, you're happy if you maintained your values. You bought 10 years ago in NYC, your values have doubled.

If you bought three years ago here, and did not overpay, you have tripled your money.

**Bham1982** · May-22-13, 10:19 AM

Originally Posted by DetroitPlanner

If you bought three years ago here, and did not overpay, you have tripled your money.

Maybe for a foreclosure or for a very inexpensive house in a rough part of town, but I don't think for the average home.

I bought four years ago, and my home is likely worth more, but not vastly more, IMO. And Birmingham is probably one of the most overheated local markets right now.

**DetroitPlanner** · May-22-13, 08:03 PM

Originally Posted by Bham1982

Maybe for a foreclosure or for a very inexpensive house in a rough part of town, but I don't think for the average home.

I bought four years ago, and my home is likely worth more, but not vastly more, IMO. And Birmingham is probably one of the most overheated local markets right now.

You always overpay when you buy in Birmingham. The last ear alone homes in metro Detroit are up 40 percent. Here is the data that backs it up. http://www.freep.com/article/2013051...s-recover-rise

**mwilbert** · May-22-13, 10:09 PM

Originally Posted by DetroitPlanner

You always overpay when you buy in Birmingham. The last ear alone homes in metro Detroit are up 40 percent. Here is the data that backs it up. http://www.freep.com/article/2013051...s-recover-rise

Please realize that the change in the median sales price is not a good indicator of how much housing prices have gone up or down in an area. People use it because it is easy to calculate, not because it is statistically sound. If you get a shift in the composition of sales [[in this case, a reduction in the percentage of sales that are distressed) you can get a big change in the median price without any change in the price of any actual house.

**Bham1982** · May-23-13, 08:25 AM

Originally Posted by mwilbert

Please realize that the change in the median sales price is not a good indicator of how much housing prices have gone up or down in an area. People use it because it is easy to calculate, not because it is statistically sound. If you get a shift in the composition of sales [[in this case, a reduction in the percentage of sales that are distressed) you can get a big change in the median price without any change in the price of any actual house.

This is all true, and much of the Metro Detroit housing price increase is due to a shift in the composition of sales from distressed to non-distressed.

That said, Case-Schiller does account for this [[to some extent), by separating overall sales from distressed sales, and by reporting on a seasonally adjusted basis.

**mwilbert** · May-24-13, 10:01 PM

Sure, but the 40% number in the article was referencing median prices, not a Case-Shiller or OFHEO number. The comparable Case-Shiller number is around 10%.