Updated houses in desirable neighborhoods are newly affordable
BY GRETA GUEST • FREE PRESS BUSINESS WRITER • May 4, 2008
The market for homes priced under $200,000 is full of possibilities.
Don't be surprised to find features like a finished basement, new roof, appliances, bigger lots and more square footage than would have been available three years ago, said Amanda Callahan, an agent with Keller Williams in Plymouth.
Since the market's peak in 2005, home prices have fallen about 23.2% in metro Detroit, according to the S&P/Case-Shiller home price index. Record foreclosures in the past two years have also created a drag on home values as foreclosed properties compete head-to-head with owner listings.
So, for the first time in years, buyers can find many choices in the under-$200,000 price range in communities such as Allen Park, Westland, Dearborn, Ypsilanti, Detroit, Howell, Harrison Township, Fraser, Clinton Township, Warren, Holly, Farmington Hills, Keego Harbor, Waterford, Monroe, Royal Oak and Ferndale, according to data compiled by multiple listing service Realcomp in Farmington Hills.
'Updated for the least price'
Keena Cockrell, a local fund-raiser, found a great deal in Detroit's University District. She got a 1929 brick home with 1,748 square feet, three bedrooms, two full and two half baths, a finished basement and two-car garage for $100,000, nearly $50,000 off the original asking price.
She searched for 10 months before finding the right home.
"My dream has always been to have a large brick home with plenty of room and a finished basement. What I have to me is just a blessing," Cockrell said. "I was just really determined that there was a house out there with my name on it."
Callahan, who sold Cockrell the house, said it had been on the market for more than a year before it sold. It, like many homes in the area, was in excellent condition. Those are the ones going fast.
"There's almost no comparison to the 2005 market," Callahan said. "It's been plummeting. What's selling right now is the most updated for the least price. People want to walk in and do nothing."
Even in the under-$200,000 price range, real estate agents say buyers are demanding stainless steel appliances, granite countertops and help with closing costs.
Grosse Pointe Farms for $135,000
Elyse Van Houzen, an agent with Re/Max Showcase Homes in Birmingham, sold a new 1,500-square-foot home in Ferndale recently for $199,500. Three years ago when the market was at its peak, people could get only a 1,200-square-feet bungalow for that price.
And new, infill construction has dropped under $200,000 in the past 12 months in some communities, she said.
"Between $150,000 and $200,000, you can get a very nice house that does not need any repair," Van Houzen said. "Under $150,000, it is going to need some things."
Claudia Ganem, 51, an assistant to a financial planner, had rented for years in Grosse Pointe Park before market conditions motivated her to buy a home in Grosse Pointe Farms in mid-April.
She was able to buy the 963-square-foot, two-bedroom, one-bath home for $135,000. The seller paid her closing costs. It had been listed at $149,900. It has an updated kitchen, electrical and plumbing, but might need a new roof soon.
She started looking for houses five years ago in the Pointes, but couldn't find anything in her price range until now.
"It's my first home ever, so it looks pretty good to me," Ganem said. "I want to keep playing it down that I live in Grosse Pointe Farms. My dad jokes that he never made it out of the Park. But it does feel good."
BY GRETA GUEST • FREE PRESS BUSINESS WRITER • May 4, 2008
The market for homes priced under $200,000 is full of possibilities.
Don't be surprised to find features like a finished basement, new roof, appliances, bigger lots and more square footage than would have been available three years ago, said Amanda Callahan, an agent with Keller Williams in Plymouth.
Since the market's peak in 2005, home prices have fallen about 23.2% in metro Detroit, according to the S&P/Case-Shiller home price index. Record foreclosures in the past two years have also created a drag on home values as foreclosed properties compete head-to-head with owner listings.
So, for the first time in years, buyers can find many choices in the under-$200,000 price range in communities such as Allen Park, Westland, Dearborn, Ypsilanti, Detroit, Howell, Harrison Township, Fraser, Clinton Township, Warren, Holly, Farmington Hills, Keego Harbor, Waterford, Monroe, Royal Oak and Ferndale, according to data compiled by multiple listing service Realcomp in Farmington Hills.
'Updated for the least price'
Keena Cockrell, a local fund-raiser, found a great deal in Detroit's University District. She got a 1929 brick home with 1,748 square feet, three bedrooms, two full and two half baths, a finished basement and two-car garage for $100,000, nearly $50,000 off the original asking price.
She searched for 10 months before finding the right home.
"My dream has always been to have a large brick home with plenty of room and a finished basement. What I have to me is just a blessing," Cockrell said. "I was just really determined that there was a house out there with my name on it."
Callahan, who sold Cockrell the house, said it had been on the market for more than a year before it sold. It, like many homes in the area, was in excellent condition. Those are the ones going fast.
"There's almost no comparison to the 2005 market," Callahan said. "It's been plummeting. What's selling right now is the most updated for the least price. People want to walk in and do nothing."
Even in the under-$200,000 price range, real estate agents say buyers are demanding stainless steel appliances, granite countertops and help with closing costs.
Grosse Pointe Farms for $135,000
Elyse Van Houzen, an agent with Re/Max Showcase Homes in Birmingham, sold a new 1,500-square-foot home in Ferndale recently for $199,500. Three years ago when the market was at its peak, people could get only a 1,200-square-feet bungalow for that price.
And new, infill construction has dropped under $200,000 in the past 12 months in some communities, she said.
"Between $150,000 and $200,000, you can get a very nice house that does not need any repair," Van Houzen said. "Under $150,000, it is going to need some things."
Claudia Ganem, 51, an assistant to a financial planner, had rented for years in Grosse Pointe Park before market conditions motivated her to buy a home in Grosse Pointe Farms in mid-April.
She was able to buy the 963-square-foot, two-bedroom, one-bath home for $135,000. The seller paid her closing costs. It had been listed at $149,900. It has an updated kitchen, electrical and plumbing, but might need a new roof soon.
She started looking for houses five years ago in the Pointes, but couldn't find anything in her price range until now.
"It's my first home ever, so it looks pretty good to me," Ganem said. "I want to keep playing it down that I live in Grosse Pointe Farms. My dad jokes that he never made it out of the Park. But it does feel good."
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