Michigan misses out on soaring home values

[Charles Brown <cbrown@xxxxxxxxxxxxxxxxx>]

I think what the article ignores is that the Detroit suburbs is experiencing a new-home construction boom that is like another planet to a Los Angeleno like me.  My sister lived in Clawson, an older community at 13 Mile.  She owned a small old 3BR home which she paid around $110k a couple of years, and took a small loss when she just sold to buy a sizable new 4BR home in Macomb for around $300k, around 20 Mile.  Macomb is flipping farmland into new housing like crazy.  Because all of the new home construction in a new community with new schools, Home Depots, etc., why would anybody buy a small house in an old neighborhood?  The increased supply of housing stock may keep the price of existing housing from increasing, but why is that a bad thing when you look at the entire picture?  Is the LA situation better, where a major cause of price inflation is the inability to increase the housing stock within commutable LA?

David Shemano

 

^^^^^

CB: We could send your comments to the authors of the article.

 

I take your word for the above. I believe I forwarded an earlier article on socalled sprawl. One does get the feeling of a Losangelizing of Detroit metro area. It seems you are suggesting there may be a housing orgasm or bubble at the outside of metro Detroit.

 

Coleman Young claimed that Detroit is a leading indicator for the U.S.