First time home buyer --- In Metro Detroit?

Question

My sister and I are interested in purchasing a home together. We have seen the research that reports it is a buyers market. We however live in Metro Detroit and if you are not familiar our economy is one of the poorest in the states. Auto industry is hitting our economy and so many homes are for sale or being foreclosed. Is it a good time to purchase a home in this area? Also, we're both single under 30 not knowing how long we plan on living in the Detroit area for; maybe less than 2 years or longer - based on our jobs. With being in the home for less than 2 years or longer will we even make a profit. Rent vs. buy is a term I've been struggling with. Help!!!

Answer 1

ok it makes no differrent where you live. It does however matter what the market is going to do. If there is no forseeable improvement in your local economy chances are housing will furthr go down so profit is impossible. The term "buyers market " is a misused term the realtors like to use to give you the illussion you cannot loose on your purchace. It is always a risk when buying a peice of realestate, purhaps a less ricsk than saying playing the stoke market but none the less still a risk.

Judging by what you said the market is already flooded with homes and the econmic condition is still deteriorating so the sort answer is if you think the economy is due to improve buy buy buy...but if you have a poor feeling and think it is not going to improve soon enough to push house prices up....stick to renting simple huh...Lets

Answer 2

I also live in Metro Detroit and I must say that it is definitely a buyers market. There are lots of good deals around. But, if you plan on moving away in just a couple years that I would suggest possibly not buying a home at this time.

I really think of buying as longer term, and you should plan to stay in your house for more than just 2 years, especially in the current economic environment here.

I know that eventually things will bounce back. I've lived here my whole life. Back in the 80's it was even worse when the autos had a similar recession. This is a huge metro area with 5 million people...one of the largest metros in the country, so I know things will get better here..but our economy might not begin improving for 3-5 years or so.

My suggestion to you is that if you change your plans and decide to stay here for more than just 2 years, then buying would be a good idea.

I am really a huge advocate for buying and would suggest it for almost anyone. I love the idea of buying because unlike renting where you are throwing your money away, with buying you really get most all of your payments back when you sell the property. So in a sense its like living for free.

I'm 25 yrs old and my condo here in Royal Oak is already paid off. This is probably my favorite thing about buying. When your place is paid off, all you have to pay is taxes and any upkeep/association fees. Than you can really put your money towards other things, like saving and building wealth.

If you are really set on buying than maybe go for a condo or small house in a nice neighborhood. Check out city-data.com for statistical/demographic reports on all cities in the US, including all the suburbs of detroit. Good luck!

Answer 3

You are correct about that economy. I would look for a house elsewhere.
Good luck
RE Agent,
Re max