Posted on 03/20/2007 5:31:07 AM PDT by Herkyman
DETROIT (Reuters) - With bidding stalled on some of the least desirable residences in Detroit's collapsing housing market, even the fast-talking auctioneer was feeling the stress.
"Folks, the ground underneath the house goes with it. You do know that, right?" he offered.
After selling house after house in the Motor City for less than the $29,000 it costs to buy the average new car, the auctioneer tried a new line: "The lumber in the house is worth more than that!"
As Detroit reels from job losses in the U.S. auto industry, the depressed city has emerged as a boomtown in one area: foreclosed property.
It also stands as a case study in the economic pain from a housing bust as analysts consider whether a developing crisis in mortgages to high-risk borrowers will trigger a slowdown in the broader U.S. economy.
The rising cost of mortgage financing for Detroit borrowers with weak credit has added to the downdraft from a slumping local economy to send home values plunging faster than many investors anticipated a few months ago.
At a weekend sale of about 300 Detroit-area houses by Texas-based auction firm Hudson & Marshall, the mood was marked more by fear than greed.
"These people are investors and they know the difficulty of finding financing. They know the difficulty of finding good tenants. They're cautious," said realtor Stanley Wegrzynowicz, who attended the auction.
"As Detroit reels from job losses in the U.S. auto industry,..."
Detroit is not reeling from job losses in the Auto industry. The Suburbs are, but for the city of Detroit, it is just business as usual.
But people pay far more for Japanese and German cars.
Is it the effect of the UAW on quality?
While shopping for autos last spring, I was very surprised to see the BMW X5 was cheaper than a Chevy Tahoe.
Hmmmmm......
It's been a long time since we bought a new car, but are they really that much for an *average* new car, or is that factoring in Hummers and Land Rovers?
"Folks, the ground underneath the house goes with it. You do know that, right?" he offered.
Yeah, that's the problem. The ground.
With a car, you can get the hell out of Detroitistan.
This article has nothing to do with cars. It has to do with the city of Detroit. If Detroit made the best cars in the world, the city would still be a liberal hellhole slum. It's the nature of the city and it's population. The former residents of Detroit have voted with their feet. No wonder people won't spend their money buying houses in the city. No matter how good of a deal.
A place where people determined to live in a relatively free enviornment with a pretty good chance of having continual running water and electricity.
A place where there are laws, not only for protection, but if even a purceived abuse is reported, one might not only find relief, but perhaps even thousands of tax-payer dollars in comfort payment
A place where one might even run for public office, gain power and control and usurp the host of the law and change it to one's own liking ...
I have more .... but I must go to prayer now ... the call comes from the loud speakers ......
for later
Another shining example of Democrat governance. Coming soon to cities and towns across America in 2009, brought to you by the Second Clinton administration.
Yeah, about the UAW. When an unskilled auto employee is getting about $30.00 an hour with extreme benefits and job security, things will eventually get out of wack. Chrysler is shifting alot of workers out of Detroit to other cities.
Unions are straw men; shadows on a wall.
A place where one can shed their past, including disavowing themselves from a deadly cult.
A place where a once poor man can open a business and not have to pay contrition to the local elders of the mosque.
A place where a woman has every chance of becoming more than just chattel.
I could go on but this is the land of Endless opportunity.
Well, there it is. It's the least desirable neighborhoods in a crappy town. Probably full of gangs and crack houses. Anyone buying is only buying it for the land and not to mention the cost of demolishing the houses.
That's a good question because you are right, Japanese cars cost much more and their factories are booming in the USA -- Southern USA. Take the new Toyota Tundra, it's just a bit over $40K while the Ford F-150 can be had for about $20K.
Something doesn't add up?
I read the piece in the NY Post about convicted auction house owner Mr. Taubman. The story told of how he heard Rosa Parks was beaten and robbed in her own home in Detroit several years ago. He moved her into one of his bulidings that was safe for her. A Jewish man protecting Rosa Parks? I have never read that before. It did not give the race of the intruder that hurt Rosa Parks.
"Toyota Tundra, it's just a bit over $40K while the Ford F-150 can be had for about $20K."
WHAT!
I just looked the other day, and a Ford f150 of comparable options is priced more than the Tundra by a few percent. Yeah your example is true when comparing the lowest ford v-6 with no A/C to the top of the line Tundra with all the options.
You don't work for the Union do you?
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