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Detroit Housing Market Hit Bottom!


By Patrick   Follow   Fri, 9 Mar 2012, 10:18am PST   3,018 views   22 comments
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Actually the Detroit housing market market hit bottom in 1968.

It's still there, at the bottom.

Realtors have been saying it's the bottom in Detroit for 44 years now. They're right, but it's sure a good thing you didn't buy when they started saying that.

Comments 1-22 of 22     Last »

waiting_for_the_fall   Fri, 9 Mar 2012, 10:32am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 1

it will hit bottom when they pay me to take the house.

bubblesitter   Fri, 9 Mar 2012, 12:27pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 2

Look at the bright side - It is actually new bottom every day. :)

thomas.wong1986   Fri, 9 Mar 2012, 1:05pm PST   Share   Quote   Permalink   Like   Dislike     Comment 3

During the 60s Detroit was making some of the best cars for the US and the world. From Ford Mustands avg 200K units a year, and Chevy Cameros for 750K units between '67-'69 alone.

http://www.housingbubblebust.com/OFHEO/Major/MidWest.html

Of course recently prices have fallen well beyond '68 prices adjusted for inflation.

Mark D   Fri, 9 Mar 2012, 1:06pm PST   Share   Quote   Permalink   Like   Dislike     Comment 4

it's the location that counts

dunnross   Fri, 9 Mar 2012, 7:31pm PST   Share   Quote   Permalink   Like (2)   Dislike     Comment 5

Detroit 2012 = Silicon Valley 2020

bubblesitter   Sat, 10 Mar 2012, 3:36am PST   Share   Quote   Permalink   Like   Dislike     Comment 6

dunnross says

Detroit 2012 = Silicon Valley 2020

haha. You beat me to it. I was not sure when will that happen,but 2020? may be. Everyone living in Detroit during the boom time thought the same way as current BA residents think.

unstoppable   Sat, 10 Mar 2012, 3:44am PST   Share   Quote   Permalink   Like   Dislike     Comment 7

It makes me sad that nobobdy has the guts to trade greencards to a million chinese in exchange for commiting to live in detroit for ten years.

Mick Russom   Sat, 10 Mar 2012, 4:00am PST   Share   Quote   Permalink   Like   Dislike     Comment 8

dunnross says

Detroit 2012 = Silicon Valley 2020

Dont count on it. A LOT of scum from New York sick of the rancid festering swamp they turned it into are flooding into the SFBAY. The rat vermin that destroyed this country from Wall St are coming to SFBAY to start the process all over again.

The USA is finished, the middle class is finished, the public schools are finished, and it will be HAVE and HAVE NOTs.

Unfortunately for us, the HAVEs want SF and Peninsula real estate. These rats will borrow from the taxpayer (via the GSEs) and drive up prices and rents using our own money , and then inflate us away.

bubblesitter   Sat, 10 Mar 2012, 4:03am PST   Share   Quote   Permalink   Like   Dislike     Comment 9

Mick Russom says

A LOT of scum from New York sick of the rancid festering swamp they turned it into are flooding into the SFBAY.

Really? can you provide some more information? first the Chinese and now Nyers?

mdovell   Sat, 10 Mar 2012, 6:05am PST   Share   Quote   Permalink   Like   Dislike     Comment 10

The interesting bit is the high end market of vegas and detroit is pretty close. Gradually the median is getting closer as well.

thomas.wong1986   Sat, 10 Mar 2012, 7:44am PST   Share   Quote   Permalink   Like   Dislike     Comment 11

dunnross says

Detroit 2012 = Silicon Valley 2020

Larry Ellison pretty much stated as much and assisted on shrinking SV companies and employment.

Thanks Larry! you the bomb!

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/09/07/BU87317.DTL&ao=all#ixzz1olD3Br5q

Q: What do you think Silicon Valley is going to be like in five or 10 years?

A: It's going to be a lot more like Detroit than like Silicon Valley. The great news is we're going to be the molecular biology hub for the world, but we will have more competition -- in San Diego, in Boston, in Tel Aviv. But the gestation period of a company in molecular biology is very different from that of a software company. The returns will be slower in coming, so the whole metabolism of the valley will have to be retuned for that industry.

Update: Biotech didnt work out all too well. It certainly does not aid in commerce as air transport, technology, rail roads, internet and many other economic booms provided.

clambo   Sat, 10 Mar 2012, 8:36am PST   Share   Quote   Permalink   Like   Dislike     Comment 12

I remember Robocop was set in "New Detroit".

xenogear3   Sat, 10 Mar 2012, 8:55am PST   Share   Quote   Permalink   Like   Dislike     Comment 13

bubblesitter says

first the Chinese and now Nyers?

Don't forget Syrian prince.
Overpriced real estate is much better than getting killed there.

jvolstad   Sat, 10 Mar 2012, 9:48am PST   Share   Quote   Permalink   Like   Dislike     Comment 14

Patrick   Sat, 17 Mar 2012, 1:46pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 15

unstoppable says

It makes me sad that nobobdy has the guts to trade greencards to a million chinese in exchange for commiting to live in detroit for ten years.

That's brilliant! But I don't think you could keep those immigrants in Detroit. They would escape.

I recall that the Lebanese fleeing civil war in Lebanon actually prospered in Detroit. They were armed, and generally bad people to mess with. Owned all the gas stations, convenience stores, etc. Maybe we should invite Iraqis to Detroit.

bubblesitter   Sat, 17 Mar 2012, 1:52pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 16

Patrick says

Maybe we should invite Iraqis to Detroit.

Not a bad idea. Something is better then nothing.

thomas.wong1986   Sat, 17 Mar 2012, 2:14pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 17

We should learn a lesson from Detroit, but i think many would just rather ignore it and move on...

http://www.pbs.org/newshour/rundown/2011/03/-this-entry-is-cross-posted.html

Detroit: A Boom Town Goes Bust

CENSUS -- March 23, 2011

For almost a half century last century, Detroit was a boom town. Between 1910 and 1950, few cities grew faster, were wealthier, were more attractive to those seeking success than what became known as the Motor City.

Sixty years ago, car makers from Chrysler to Cadillac, Studebaker to Dodge had plants in or near the city limits. There were hundreds more parts plants, steel mills, foundries and parts depots, where the products built in Detroit factories were sorted and sent on to the vast networks operated by the auto companies across the country. People in all parts of the city could walk to work, or take a streetcar or bus. Some of them chose to drive, because they earned enough to afford to vehicles they were making (something their parents and grandparents might not have been able to do).

Professor Boyle says that in Detroit's glory years, from 1910 to 1950, the city was a boom town, equal to any of the gold rush towns of the American West

freak80   Sat, 17 Mar 2012, 2:19pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 18

That's what Houston will look like in 30 years.

lurking   Sat, 17 Mar 2012, 2:38pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 19

Patrick says

Maybe we should invite Iraqis to Detroit

Detroit already has a huge Iraqi population. In 2008 alone about 14,000 settled there. When I was passing through it appeared to be a stronghold. Not sure why they are attracted to Detroit and Dearborn, but they are already there by the tens of thousands and have been for some time.

zzyzzx   Mon, 19 Mar 2012, 3:23am PDT   Share   Quote   Permalink   Like   Dislike     Comment 20

With high unemployment, the last thing we need is more immigrants.

StoutFiles   Mon, 19 Mar 2012, 3:37am PDT   Share   Quote   Permalink   Like   Dislike     Comment 21

zzyzzx says

With high unemployment, the last thing we need is more immigrants.

If the homeowner isn't insulted by your offer...you didn't bid low enough!!!

We're in a tough situation.

We need population to increase to sustain our economy, but we don't have enough high paying jobs to accommodate the current population.

Eventually our standard of living will have to go down, it's inevitable.

lostand confused   Mon, 19 Mar 2012, 4:14am PDT   Share   Quote   Permalink   Like   Dislike     Comment 22

I read somewhere the city was planning to bulldoze huge blocks and turn it into farmland??

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