What's Your Market Like?

You hear things nationally and locally in the news about this market and that. I’d like to know how it really is in various areas of the country straight from the horses mouth so to speak.

Here in SE Michigan things are pretty rough. Automotive Companies are not doing too well which directly effects our market here in the burbs of Detroit. We are at an all time high inventory. I am fortunate enough to have a good referral base but I know a lot of agents who have had no choice but to go back to their 9-5ers. I believe we are 2nd in the country for foreclosures as well.

Some people are telling me that the market is slowing down here also. The statistics show a shrinking inventory. Average time on Market is still high at 5 months. This is skewed due to several New Orleans people moving into Houston, creating a temporary sales boost.

In California the market is still warm… it’s not as HOT as it was the same time last year but it’s still going. The supply of homes are growing rapidly… I hope it doesn’t outgrow the demand but it can lead that way. The seller’s market here may dip down 5% and it’s starting to show more of a buyer’s market.

I live in SE Michigan as well, and I am about 2-3 weeks away from sending my first mailing campaign. I tend to look on the bright side here. Housing prices are low and affordable, and this is motivated seller heaven. Mortgage rates are slowly climbing, and lenders are slowly tightening their standards. That means more non qualifyers to put in via land contract or lease option, and a slightly bigger pool of renters.

I think this area is sub 2 heaven, because of the economy, and the rapidly increasing foreclosure rate. There are always buyers who cant qualify to put in these houses, and as long as I can get a reasonable down paymetnt–which is the toughest part–I think there is plenty of money to be made here.

I can’t imagine too many areas having this many motovated sellers.

It seems that your exit strategy should change with your market. When you have less buyers, you have more renters. Instead of flipping the property, hold it. Of course, you can find good deals in any market, some are just harder to come by. I could be wrong, but from reading the threads on this site and talking to other investors, this seems to be true. The exit strategy is a key ingredient in an investment recipe and so it is a determining factor of a deal. I know an invester who has several markets and has stated that he can not sell a house in this market so he rents, and so on. It seems that you can make rei work in any market as long as you can adapt.


Good points. I agree. If you can’t sell em, rent em. I did have quite a few listings that I suggested to list “for sale” and “for lease” at the same time. 8 out of 10 of those listings leased. Prices ranging from 300’s up to and including 750k. The owners have moved on and will continue to lease as long as necessary. In one case the tennant likes the house so they will probably end up buying.
From an investment standpoint I give a home a length of time to sell. Say 90 days. If I can’t get a buyer I will throw a “For lease” out there on MLS while still trying to sell. Whichever comes first will be what happens. Most of the stuff I do is cash so the money just goes back in to the bank for the next purchase. No mortgage to worry about. If you have a mortgage it’s better to have the payments covered anytime!
I guess the moral is to always plan for the worst in all markets. I’d rather be pleasantly surprised than to find myself up a creek.

It depends on the state too. In CA, you cant make $ by renting it out.

“I’d like to know how it really is in various areas of the country straight from the horses mouth so to speak.”


Well Wilbuuuuurrrrrr…in the Pacific Northwest…the markets are blistering hot!!!

In-migration due to good jobs, low supply, and new construction is barely keeping pace.

Double digit appreciation seems a foregone conclusion for the next couple years.

The only wild card is interest rates. They go above 7%, and it’ll be like stepping in a pile of ‘Lil Green Apples.’


Quality is like buying oats…you want nice clean fresh oats…you’ve got to expect to pay a fair price. However, if you don’t mind the oats that have already been through the horse…then you could expect to pay less! :smiley:

Here in the Windy City the markets are average to a little above average depending on what you are doing…I ran my monthly mailing campaign for pre-foreclosures and there were over 450 names on the list in the last 3 weeks…The prices of crap property in bad areas has gone up but investors are still snatching them up, fixing and flipping for a 12-20k spread minimum in most cases…A buddy of mine who does loans part time for a mom and pop shop said March was a record month for them as far as total loans and value of those loans so I guess things are good…The one spot that is seemingly over saturated are the smaller condo’s in 50 unit + buildings…Seems people are preferring to get duplexes in edgier areas and pick up 800 sq ft in space as oppossed to the living in a pretty box, with in house amenities near the lake…Only time will tell but there are definately no starving investors right now in Chicago

I am in Central Ohio. We have a buyers market. Lots of foreclosures.

Investors are buying up short sales and REOs on MLS. Plenty of HUD homes too.

I advise my clients buying in high forclosure areas to buy and hold. It is next to immpossible to get high re-sale prices when all the other homes in sub-division is HUD or REO. Owners can’t get what they owe. For investors, BUY, BUY, BUY! Expect to hold for 3 to 5 years, then you will be in good shape. You make your money when you buy!


Don’t see to much foreclosures here in Seattle. I think however I must just need to adjust my marketing.

I live in Atlanta and we haven’t changed much in the past 15 years. We’re at a steady 7% appreciation rate.

For me personally, I market every single house I have as a lease option, regardless if I want to sell it 100% or not. That way, I get a lot more potential buyers (most folks don’t think they can own a home with their credit) and I can pass them onto my subprime mortgage broker to find out if she can get them financed. Most of the time she tells me that she can work with them and get them 100% qualified in 6-12 months. It’s always a good day when she tells me she can get them qualified when they thought their credit was ugly.

Proper prescreening will take care of a lot of potential disasters when it comes to tenants. But by marketing all houses to lease option, you’ll get buyers that didn’t even know they COULD be buyers.

Big Cheese