Quote:
Originally Posted by valo403
The big problem a lot of people seem to be pointing out with buying in Detroit in the hopes it will bounce back is that there are a ton of houses available, and a ton of land, so even in a great bounce back there isn't going to be that supply/demand crunch to push prices up enough to make the risk worth it.
|
It staying down for longer and more houses getting demolished is actually better for a RE investor there, in my opinion. Then even if there's a ton of land available houses could sell for close to replacement cost of building before new supply started to come on the market. There's no way you could build a 3000 sq foot house for anywhere close to that price, so that could appreciate significantly before someone thought it was worth building new. The market has to soak up the huge vacanct supply before any price increases can happen, but if they start getting in-migration again that's possible.