March 30, 2007
SEMCOG Economic Outlook
Home builder counts on suburban buying trend
Mike Wilkinson / The Detroit News
The effects of the economic downturn are apparent to most Metro Detroit homeowners -- and to anyone trying to sell a home.
"There's a lot of supply out there," said Tim Stapleton, division president of Centex Homes, one of the largest homebuilders in the region.
With predictions that good-paying jobs will continue to decline, along with population, many fear that home values will continue to decline. Over the short term, that could happen.
But Stapleton is a bit more bullish, saying growth will likely slow, but folks will still seek bigger houses in the suburbs. And those moving out of smaller homes will be able to sell, in some cases, to first-time buyers.
"The population is dwindling, but home ownership is going up," he said.
John Kurczak, who sells commercial and residential real estate in Macomb County, said he sees hope in commercial real estate as displaced auto workers, buoyed by buyout checks, purchase and create businesses. One of his customers is switching from auto worker to dry cleaner, or "buying his next job," Kurczak said.
On the residential side, he says ranch homes are selling better, in part because the older population prefers a one-level house.
For Stapleton, the sky isn't falling. He says unemployment may be near 7 percent, but that just means 93 percent have jobs. And he may be able to find them a home.
"There's still a lot of people working," he said.
SEMCOG Economic Outlook
Home builder counts on suburban buying trend
Mike Wilkinson / The Detroit News
The effects of the economic downturn are apparent to most Metro Detroit homeowners -- and to anyone trying to sell a home.
"There's a lot of supply out there," said Tim Stapleton, division president of Centex Homes, one of the largest homebuilders in the region.
With predictions that good-paying jobs will continue to decline, along with population, many fear that home values will continue to decline. Over the short term, that could happen.
But Stapleton is a bit more bullish, saying growth will likely slow, but folks will still seek bigger houses in the suburbs. And those moving out of smaller homes will be able to sell, in some cases, to first-time buyers.
"The population is dwindling, but home ownership is going up," he said.
John Kurczak, who sells commercial and residential real estate in Macomb County, said he sees hope in commercial real estate as displaced auto workers, buoyed by buyout checks, purchase and create businesses. One of his customers is switching from auto worker to dry cleaner, or "buying his next job," Kurczak said.
On the residential side, he says ranch homes are selling better, in part because the older population prefers a one-level house.
For Stapleton, the sky isn't falling. He says unemployment may be near 7 percent, but that just means 93 percent have jobs. And he may be able to find them a home.
"There's still a lot of people working," he said.
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