Jeff Duneske's Blog

With almost 1 in 50 homes in some form of foreclosure, this absolutely has a very big impact on our metro detroit housing market. A lot of my clients ask me how does all of this affect the housing market.

Unfortunately, from a sellers perspective, this is not good news. Many banks end up having "Fire Sales" to unload these foreclosures and reduce these homes at 10% or greater below the market average to make quick sales.

From a buyer and investor viewpoint, this makes for some great investment opportunities. There has never been a better time to invest in this market with great all the great buys in the marketplace.

For sellers, this really hurts the rest of the market in establishing a steady if not appreciating market value.

Like all sales models, especially in the housing market, it comes down to supply and demand. Until the market can recoup some and the job market and consumer confidence gains strength, the market will continue to be very vulnerable to so depreciating values. The basics of economics states that there are cycles that occur. I believe professionally that the market will recover, it will just take some time to get rid of a lot of the excess inventory of homes.

Once this takes place, hopefully over the next year to year and a half, this will help the market to recover and hold, if not help make this once envied housing market appreciate in value.