Quote Originally Posted by Johnnny5 View Post
The improvements downtown are beyond what even the most optimistic of us would have predicted just a few years ago. That said, I'm not sure if the momentum will continue or if this will end on a sour note. A decade of cheap credit has pushed investors into some unusual places and Detroit real estate is definitely one of them.
I'd be a lot more concerned if Detroit real estate prices were abnormally high. Yes, they're abnormally high for Detroit's history, with the excuse historically being "yeah, it's a nice building, but it's Detroit."

But right now downtown prices are honestly pretty comparable with most city centers nationwide that have been re-developed, which is congruent with the improvements that you've referenced. And the quality of life downtown is at least somewhat comparable [[and sometimes better) than other city centers in the US -- especially when adjusted for price.

Plus it's not like SE Michigan didn't have the money, we've always had high end real estate in Birmingham and Royal Oak and Grosse Pointe and Ann Arbor, etc. The difference is that now some of those same people are now willing to pay similar prices 1/8 mile from Campus Martius.

I'll tell you where I *am* worried about a decline in the era of cheap credit. Bay Area [[San Francisco) and -- to a lesser extent -- NYC. I mean a 3-bdrm townhouse in SF could list for $5MM and that would be considered "normal". I have a feeling that might see some downward pressure as rates go up.