Metro Detroit real estate market update

The Metro Detroit real estate market home values have dropped dramatically. Homes in Detroit and any city that borders Detroit have lost a lot of value. I would say many of Detroit's good suburbs have lost 35 -40% of the home value. The homes in cities that border Detroit, Detroit itself, and other marginal cities have lost 50% or more in home value.

You can point out the "rough" cities or "less than prime areas" in Metro Detroit just by looking at the home value drop. When I say less than prime or rough areas I would say the areas that insurance has higher rates in, where the police are called more often. The working class neighborhoods. The areas the perception is where some people think the area is going to get worse instead of better.

These suburban areas outside of Detroit a few years back you found a few houses for under a $100,000 but 90% of the homes sold for more than a $100,000. Now you can find decent homes for $25,000 and nice brick homes for as little as $50 - $60,000.

And I wouldn't myself call these bad areas. If I was a young guy just starting out I would buy a home there in a heart beat. I bought that way when I was young. And I made out when I sold it. Sure some of them don't have the absolute top notch schools but they have good school systems that will give your child the education they need to get into college or survive in life. The teachers and administrators care.

There are a lot of opportunities to buy homes and have payments less than what people pay for rent. That is what I like. It makes financial sense. Sooner or later these homes will be worth a $100,000 again. Sure it may be 15 years but who cares.

You own the home! You are building equity instead of putting into the landlord's pocket. You are getting a tax deduction. Those are the benefits. And you have the chance of greater appreciation than some other cities.

Whether it is Warren, Oak Park, Dearborn Heights, Wayne, Redford, Livonia, Taylor, Romulus, Lincoln Park, Wyandotte, Redford, East Pointe. There are some great deals in Metro Detroit real estate under $60,000

• under $50,000
• under $40,000

So who cares if it is not a hoity-toity neighborhood. Blue-collar, working class homes in neighborhoods around Metro Detroit are a bargain right now. Feel free to call or email me with any questions.

Search Metro Detroit Homes for sale and get the latest foreclosures emailed to you daily, weekly, or monthly.

Russ Ravary your Metro Detroit Realtor.