Regardless of where I look in Michigan it appears that the volume of property currently on the market, and coming to market, far exceeds current demand. News reports trumpet the sorry state of the economy in Michigan; the demise of the American auto industry (at least the so called big three); highly unfavorable tax structure for businesses; loss of industry to other states; and, sadly loss of many skilled and unskilled jobs.
These factors have led to the glut of real property on the market in Michigan and depressed prices throughout the state from levels seen in 2000-2003. Adding to the unsold inventory of vacant property and homes, are the many homes coming to market through foreclosure – one in thirteen homes in Michigan is currently in foreclosure according to the press releases. Have we reached bottom yet in this buyers market? I don’t think so! Many downstate owners of property are being forced to put their property and second homes up for sale due to loss of jobs, further adding to a saturated market.
So is the glass half empty of half full? In my opinion it is a buying opportunity seldom seen in my lifetime. In the Grand Traverse area of Michigan for example we have homes in every category available at dramatically reduced prices and an unsold inventory approaching three years at traditional absorption rates. Want to steal something? Come to NW Michigan and capitalize on this buyers market.
What we are seeing is our buyer base shifting to those with money from other states and European buyers due to the incredible strength of the Euro, now at more than 35% of the dollar. In the St. Pete area of Florida for example more than 30,000 European buyers have bought property in the last three years capitalizing on somewhat depressed property values and a very strong Euro.
For a real estate broker the question seems to be how to attract those buyers with money and the Europeans.
Authored by:
Brent Nichols
Principal Associate Broker/Co-Owner
