Post Number: 170
|Posted on Tuesday, February 06, 2007 - 1:20 pm: || |
Here is an interesting article about housing values comparing core communities and exurbs. It appears in the recent downturn that many exurban communities have not fared very well. What about around here, anyone have any information about housing prices and stocks in exurban areas as compared to the core communities?
http://money.cnn.com/2007/02/0 6/real_estate/exurbs_housing.r eut/index.htm?postversion=2007 020612
Post Number: 265
|Posted on Tuesday, February 06, 2007 - 1:29 pm: || |
i know i have friends who built a new house in a subdivision in lyon township about 2 years ago. they transferred jobs and moved to tennessee this past summer. the house was bought by the company to be sold for them, so they are some of the lucky ones. they were given about $10k less than the house was originally listed for. it is still for sale, but it's the bank's problem, not theirs.
Post Number: 515
|Posted on Tuesday, February 06, 2007 - 1:42 pm: || |
I don't have any bad stories, but I know several people that have build houses in Wixom and Commerce township on the past couple years who are all doing pretty well as far as property values and such are concerned...
Maybe our exurbs aren't having the problems mentioned in your article
Post Number: 8263
|Posted on Tuesday, February 06, 2007 - 1:51 pm: || |
H-m-m-n-n, who ultimately covers these corporate buyouts, does the transferring company bear any or all of the liability for the extended value over current market rate?!
Are these mortgages leveraged by someONE, or by some company...or an insurance policy? How is this loss shared across the economy?!
Post Number: 78
|Posted on Tuesday, February 06, 2007 - 2:21 pm: || |
Well where I am from, Chesterfield Twp. I have noticed that all of the construction developments have come to almost a complete stop. A street put in by my parent home consisting of 26 lots some wooded and creek frontage, the homes are of excellent quality and 2 years later! not one home or lot has been sold. About 1 year ago most home building in the subs came to a complete stop. There are a number of mostly undeveloped neighborhoods all around the area. It is not like 5 years ago when they were built all over at a feverish pitch. There have also been no new subdivisions built in about a year.
I compare this to mid-town where though things have certainly slowed down but I dont think as much as out in Chesterfield. I believe though that in the near future that a neighborhood like mid town will grow and develop faster than the exurbs. Consider gas prices, lack character in the exurbs, commute distances at there limit, many third generation suburbanites who are attracted to city life to name a few factors. Just some thoughts but I will tell you that north of Mt. CLemens home sales have slowed and people looking for the country life are finding it is not what they thought (especially when you buy a 70X120 lot in the country! What do you think is gonna happen around you??)
Post Number: 154
|Posted on Tuesday, February 06, 2007 - 3:07 pm: || |
I lived in Chesterfield myself, in one of the dozens of cookie-cutter new subs. The biggest problem exurban communities face is that they tend to build out almost entirely residential, which is not sustainable for any community in the long run. Residential parcels use urban services way out of proportion of what they are willing to pay in taxes.
The current lull is based on the Michigan economy and not much else. Michigan subsidizes and encourages sprawl. Perhaps during this lull we can make some changes at the State level, so the next time the economy is strong, we infill rather than "outfill".
I agree with Fareastsider, once you buy a 70 x 120 lot, you are no longer in the country (and believe me, another developer is looking at those beautiful woods across the street from your sub).
Post Number: 79
|Posted on Tuesday, February 06, 2007 - 3:14 pm: || |
To many state funding policies are based on growth and total population. A township like Macomb suddenly takes funding from smaller, denser and older suburbs as Roseville, Eastpointe, Allen Park, Dearborn Heights just to name a few. With Macomb over 70 thousand residents now as well as new infrastructure from developers they receive more road and school funds. Meanwhile the older cities are due for many infrastructure repairs and loose out on necessary state aid because of large townships are building out like mad. These are just a few of the problems with policies which encourage sprawl. I think sprawl would occur anyways but certainly not at the pace it has with it being encouraged by government policies. I think now we are seeing the extreme edges of the metro area being defined pending any new transportation innovation.
Post Number: 5487
|Posted on Tuesday, February 06, 2007 - 3:29 pm: || |
Lack of jobs can lead to poor housing market.
More development in the cities can lead to a poor housing market.
Property natural reserves can lead to poor housing market.
But if all of those three main problems have solved than the ex-urban housing market will continue.