Today Michigan residents are bemoaning the declining economy especially how it relates to the housing market. Real estate seems to be rapidly declining with no end in sight. However, sometimes it is easy to be lulled into a false sense of doom when that is what you are hearing overall. Statistically speaking, though, the real estate market is not as bad as some seem to suggest and it is already seeing improvements. So in addition to the current trends, is there anything else that can affect the real estate market in a positive manner?
First, home buying seems to be up overall. This is likely due to the number of houses on the market that are priced below an ideal dollar amount. Sellers are losing money on the equity they've build into their home and leaving the area. However, buyers are taking full advantage of this and purchasing homes at cut rate prices. Although it is a bad time for sellers, investors and individual buyers are benefiting from the trend. Real estate in general, though, is cyclical and although it is a buyer's market now, eventually it will be a seller's market and the pendulum will again swing the other way. What's best for the overall economy though is when there is a close balance between buyers and sellers. Forecasts, though, do not seem to support an upward trend any time soon.
The economy in general especially the job market needs to improve in Michigan to see a significant corresponding improvement in real estate. The current trends in employment are declining and the unemployment rate is rising. This declining job market is seen across all industries in Michigan. This will have a direct correlation to the real estate market in Michigan. People who do not have jobs, do not have income. People who do not have income can not afford to buy homes or keep the homes they already have.
Because people are losing their homes at a rapid rate and have no jobs, there are some things that can be done to affect improvement. However, knowing how to improve the market and putting it to any practical use are two very different things. People who are in homes already need to stay in them and if that means financial assistance in order to reduce the foreclosure rates, then this needs to be done. The greater problem of the overall economy needs to be addressed though for a long term solution. With the auto industry having a great impact on the economy and this market is declining, there needs to be an effort to diversify industry in the area.
Diversifying industry and creating new job opportunities for people will stop the trend of people leaving the area in search for more lucrative jobs. Government assistance for new businesses or incentives for business growth may be able to help bring some new life into the job market. If there is an increase in the job market, Michigan will start to see more people move the area and need homes which will affect an upward swing of the real estate market.