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So many houses, so few buyers (Ann Arbor real estate bubble)
Ann arbor News ^ | 10-9-05 | Mike Ramsey

Posted on 10/09/2005 7:28:41 PM PDT by Dan from Michigan

An oversupply in housing that has been troubling other southeast Michigan communities has hit Washtenaw County in full force.

The result has been stagnant home values for the past two years. There's also evidence that values may be depreciating slightly as competition forces down prices.

Experts say the poor Michigan economy, coupled with a flood of new houses, has created the strong buyer's market.

"The inventory is greater than Ann Arbor really has ever seen,'' said Elizabeth Brien, a leading agent with the Charles Reinhart Co., a real estate firm dealing with properties throughout Washtenaw County. "And I think it's going to continue to grow for awhile.''

According to the Ann Arbor Area Board of Realtors, listings for single-family houses are up 21 percent through August 2005 compared to 2004, while the number of units sold has fallen slightly.

It's a bitter pill for home sellers who daily see stories about the super-heated home appreciation in other markets around the country. The national average for appreciation was 14 percent in 2004. Washtenaw County last year averaged just 1.5 percent appreciation, and is on pace for virtually no gain this year.

Through August 2005 the median sale price of a home in Washtenaw County was $227,500, compared to $230,000 that time last year.

Sellers face hard choices

A tough real estate market could damage other sectors of the local economy, as many people have been counting on gaining wealth through home appreciation. With access to equity so easy through lines of credit and refinancing, rising values have been counted on to pay for consumer spending.

Martin Bouma, a Keller Williams agent who has 68 residential listings, said about 15 of his clients are "very anxious.''

(Excerpt) Read more at mlive.com ...


TOPICS: Business/Economy; News/Current Events; US: Michigan
KEYWORDS: annarbor; bubble; realestate
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Jobs, jobs, jobs, and jobs. The Granholm economy in full force.
1 posted on 10/09/2005 7:28:48 PM PDT by Dan from Michigan
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To: Dan from Michigan

True.
But how much of the real estate bust is fueled by the speculators that bought homes looking to make a quick and unearned return on their dubious investment?


2 posted on 10/09/2005 7:33:43 PM PDT by sarasmom (What is the legal daily bag limit for RINOs in the USA?)
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To: Dan from Michigan

Sounds like this side of the state, too.
Way overbuilt.


3 posted on 10/09/2005 7:34:20 PM PDT by MaryFromMichigan
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To: Dan from Michigan
Yep. Mich in general is a real estate wreck. Ann Arbor is especially vulnerable because of it's ultra Lib City Council and the ultra high property taxes which usually accompany this form of local Gov't.
4 posted on 10/09/2005 7:34:41 PM PDT by drt1
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To: drt1
Even Livingston County is becoming a buyer's market, and we're the fastest growing county in the state.

I just hope it stays a buyer's market for one more year......

5 posted on 10/09/2005 7:38:01 PM PDT by Dan from Michigan ("My Gov'nor don't got the answer")
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To: Dan from Michigan

> Through August 2005 the median sale price of a home in Washtenaw County was $227,500, compared to $230,000 that time last year.

That is not a "bust". That is a slowdown.


6 posted on 10/09/2005 7:45:43 PM PDT by jim_trent
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To: Dan from Michigan

The house next to me Was sold by the original owners for $149,000 about 6 years ago. It's been sold twice more in the first 3 years and has only been occupied for a few months in the last 3. Today the asking price is $225,000 and the owners expects to lose money on it.

From talking to people who have looked at it, it seems the house is too far from Ann Arbor, and about $60,000 too much.


7 posted on 10/09/2005 7:46:59 PM PDT by cripplecreek (Never a minigun handy when you need one.)
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To: Dan from Michigan
From 9/4/05 Detroit Free Press

"York Township: This Washtenaw County community drew a lot of attention recently when Toyota chose it as a site for an engineering and testing operations facility. It is a hotbed of residential real estate activity. In the past 10 years, the area right off U.S. 23 has grown due to the luxury homes that have gone up. Most likely it will continue to grow, as those Toyota employees start looking for somewhere to live.",


8 posted on 10/09/2005 7:49:36 PM PDT by stylin19a
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To: Dan from Michigan

Big Mama winter is coming fast. I'd move too.


9 posted on 10/09/2005 7:51:26 PM PDT by Black Tooth (The more people I meet, the more I like my dog.)
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To: cripplecreek

Personally, I'd like to build a wall about 2 miles south of M-36 along the Washtenaw County line.......:)


10 posted on 10/09/2005 7:52:44 PM PDT by Dan from Michigan ("My Gov'nor don't got the answer")
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To: Dan from Michigan

Obviously you didnt hear the radio guy on WJIM. He declared Granholms "Cool Shitties" initiative a success. He said it created 400 new jobs. The Cool Shitties budget was only 100 mill. Thus each job only cost the taxpayers $250,000.00. Granholms a genius....and the radio guy is ...a... Tool!!!


11 posted on 10/09/2005 7:52:55 PM PDT by Luigi Vasellini (60% of Saudis, 58%of Iraqis, 55%of Kuwaitis,50% of Jordanians married 1st or 2nd cousins. LOL!!!)
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To: drt1

Sounds like just the place to send a few thousand former N.O. residents!

From your description they would feel right at home, except for the weather.

There are certainly enough of them to use up the "excess" houses on the market.


12 posted on 10/09/2005 7:54:26 PM PDT by Richard-SIA ("The natural progress of things is for government to gain ground and for liberty to yield" JEFFERSON)
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To: sarasmom

And in Santa Monica this afternoon I saw two condo open houses with "reduced" signs on them.


13 posted on 10/09/2005 7:58:26 PM PDT by Bertha Fanation
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To: Dan from Michigan
Its half the median for a comparable home in California. Here its $600,000 and you need a $100,000 income just to pay the mortgage. In Michigan, the price is still low enough to keep it within reach of the middle class but not for long if real estate prices continue to surge.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
14 posted on 10/09/2005 7:59:06 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: Dan from Michigan
It's a bitter pill for home sellers who daily see stories about the super-heated home appreciation in other markets around the country. The national average for appreciation was 14 percent in 2004. Washtenaw County last year averaged just 1.5 percent appreciation, and is on pace for virtually no gain this year

Location, location, location....

15 posted on 10/09/2005 8:06:51 PM PDT by lewislynn (Status quo today is the result of eliminating the previous status quo. Be careful what you wish for)
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To: Dan from Michigan

"...coupled with a flood of new houses.."

This has killed selling an older home in DFW - so many new and updated houses on the market, areas are seeing pricing drops of $10-15K (Richardson, Plano and Grand Prairie)


16 posted on 10/09/2005 8:13:51 PM PDT by txzman (Jer 23:29)
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To: Dan from Michigan

With all due respect I don't see why anybody would want to move to MI. The state's economy is in shambles, devastated from the loss of factory jobs and the decline of the American carmakers. Young poverty-stricken males roam the countryside, stealing everything in sight and selling drugs wherever you go (and not just in the Motor City - along the lake shore, Benton Harbor, Grand Rapids, etc.). It's the most depressing place I've ever seen in the First World.

What surprises me the most is that property values have not collapsed in Ann Arbor. (Yet.)


17 posted on 10/09/2005 8:14:45 PM PDT by gwb2OO4
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To: Dan from Michigan

Yeah I would like to do the same along the eastern and northern edges of Jackson county.


18 posted on 10/09/2005 8:16:59 PM PDT by cripplecreek (Never a minigun handy when you need one.)
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To: sarasmom

more of it (at least around here (not ann arbor)) is fueled by builders selling 100% financed new homes and/or builder-bought-down mortgages (where the monthly payment goes up 50% after 2 or 3 years). the market is swamped with middle-class/upper-middle-class homes that are 2-4 years old where the buyers just can't afford them anymore -- on top of all the new builds.

it's crazy.


19 posted on 10/09/2005 8:19:00 PM PDT by kpp_kpp
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To: Dan from Michigan

The Delphi BK should help things out.

These "uneducated boobs" had no right to earn such high wages with which to purchase such properties in these "neighborhoods" anyway.

All "works out in the end", eh?


20 posted on 10/09/2005 8:25:18 PM PDT by WildPlum
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