Detroit property high on search list?

The NAR has put out some startling news that puts a positive spin on the market, for a change.

Yet, it is hard to believe. They claim that the 2nd most search city on Realtor.com is (Are you ready for this?) none other than Detroit.


http://lansner.ocregister.com/2011/02/24/americas-most-searched-housing-markets/100849/


I can understand Chicago being on top of the list, even with its snowiest February in more than 100 years. My thinking is this is because a number of area residents got so fed up with winter that they would consider selling, and want to compare area home prices. Still others who live within the city limits of Chicago are not happy with the actions of the soon-to-depart Mayor, and are looking to move out of the city and in to the suburbs or perhaps beyond.

But Detroit?

The only thing I can figure is that with houses there being priced so low, and with the banks paying next to nothing for Certificates of Deposit and other investments, a number of people are looking at buying and holding properties in the Detroit area for a few years. They figure somehow the city will be rebuilt or at least be brought back to life somehow.

Meanwhile, this is the sort of information that the NAR should be putting out. It reminds people that consumers are using their sites and continuing to search for properties. This is much better than the damage they do by actually releasing the "home sales are down x% compared with last month and last year" stats they seem to constantly do. Those only reinforce the belief that the market is bad. Not that it is great, but people within the industry need to keep a positive slant at all times.

good news or bad news???

Now that mortgage rates have dropped at least once a week for the 11th consecutive week, I am finally seeing reports from around the country of home sales being on the rise. That's a good thing.

Yet, now the media slant is such that they are often pointing out the reasons as being due to foreclosures and that many of the sales are at lower prices than in recent years.

As I have been harping about for months, some of the realty associations continue with the "problem" slant instead of reaching for every positive they can. The approach should be that now that home buying is becoming more affordable to more people and mortgage rates are reduced to near record low levels, this is the best buyer's market in several years. (!!!)

This story from Lansing is typical of what I'm seeing lately, with the "but" home prices are down. Funny, but when they report on Wal-Mart's quarterly profits, I don't see stories about how "the price of the TV sets they sold are less than the 2007 prices" as a concern.

http://www.lansingstatejournal.com/article/20090114/NEWS03/901140352/1004/NEWS03

Detroit, going from "motor city" to "foreclosure capital of the world" offers this story as if the news is a mixed bag:

http://www.freep.com/article/20090114/BUSINESS07/901140347/1002/rss02

My approach would be that even in down times for the automotive industry, houses are being bought up in the Detroit area at a faster pace than the year before.

You see, a few word changes can do a lot for the public's perception. Those of you who are realty and mortgage professionals need to keep that in mind. Those of you who are investors or looking for a home should be doing your research right now in search of the best value out there within your desired parameters.

Keep Looking For Positives !!

Still looking for more positives about the market while others, including those in the industry itself, continue to spread the word about doom and gloom.

Now, an article in the Nashville Tennesseean caught my attention, about how appraisers are coming under fire:

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20080818/BUSINESS01/808180322

An article in the Kane Country Chronicle (suburban Chicago) over the weekend further illustrates my point. First, it shows declining home sales figures again. Released by the local realty association.

Then, it quotes, among others, Linda Ayukawa, who is managing broker at a local Coldwell Banker office as saying “People for whatever reason just haven’t been that motivated to buy,”.
Let me get this straight. Another local realty association continues to make lagging home sales figures available on a regular basis. A managing broker in the same area gets quoted as not knowing why consumers aren't motivated. Thousands of consumers saw that article.

If I was a real estate professional or a lender in the Kane County area, I'd run ads with Linda's quote, identify her CB office, and in big letters, state that "We work with the motivated buyers and sellers in (name of community)." There is a saying among marketing experts that "Sometimes any publicity is good publicity". Someone should tell Linda that this is the furthest from "any time" I have personally seen in years. But she is probably busy bragging about how she was an expert quoted in the local paper.

Perhaps the rise in some of the homebuilder stocks last week will make some investors and potential buyers take notice. D. R. Horton, Pulte, Red Bank, and Centex, all showed increases in share prices at some point last week. A bit of consumer confidence could go a long way.

Nice reporting by HispanicBusiness.com, with a recently completed study showing that lower home prices are "more than offset" by higher mortgage rates, even to the tune of 10 - 20% more. This came out the same week as a report showing state-by-state which areas have the highest closing costs.

I take that as a message for investors to explore joint venture possibilities with other investors to grab some of the good deals out there. It's not easy, but nothing successful ever is. Get together a group of 6 investors with $50,000 each. A barrel filled with $300,000 CASH up front just might get you a property listed in the $500,000 range since the seller receives all cash immediately. No waiting and waiting and waiting for a qualified buyer to come along. The buyer group can then re-list for a $450,000 - $500,000 sale price without having its own mortgage payments to worry about. Some will call it "group flipping", but it is a way to do some power buying.

Finally some positive sales statistics from a big city. The Detroit Free Press reports that home sales in metro Detroit rose 15%. Before I could join you and say "that is because of foreclosures", that same article added that during the month of July foreclosure activity fell by percentage points. While the article contained many more positive and negative statistics, its most important points were positive toward the industry.

An Aspen CO real estate firm came up with a way to keep the local market going. Chaffin Light Real Estsate purchased a $7.65 million office building to house its operation. How does this impact the local market? I'd say with the right advertising campaign. I am not their marketing consultant, and normally don't give valuable free advice, but in this market I need to get industry professionals thinking and acting positively. Chaffin Light should point out that "We invested over $7 million into this community, and we'll get you the best local investment for your money". And show off their newest listings.

No matter what you read, think positive. Create opportunity.