Now that the elections are over and the holidays are upon us, this is a good time to reflect back

upon this past year.  Whether you are a democrat or a republican I think we can all agree

things in our corner of Michigan are pretty dire.  As most of you know, cycles come and go.  

Some cycles bring good economic times and others bring bad.  In the real estate business,

sometimes you just have to ride the wave and hang on tight!  Although our economy is not in

favor right now, history has led us to believe that Michigan will rebound and come back to the

top.  Some of us that have been around long enough have become accustom to this type of

economic cycle in our area.  I can still remember this slogan from the eighties, “The last one

out of Michigan, turn off the lights!” Interest rates soared to the high teens, the unemployment

rate was high and many had to move out of state to find good paying jobs.  Some of that sound

familiar? 

I think a large number of us can also remember what followed the downturn of the eighties was the

prosperity of the nineties.  In our corner of Michigan we enjoyed one of the best appreciations in real estate values in the history of our state with double-digit annual increase in values and rental vacancies where practically unheard of.  Homes and rentals were in such demand in some cases; it was like holding an auction.  I remember the overwhelming response I would have trying to rent a vacant home.  I would have an outgoing recorded message with the time and date I would be there for about twenty minuets.  I would arrive about five minutes late (to build up the demand) and let everyone in at one time handing out applications to everyone that entered.  Most of the time I would receive all of them back completed.  In some cases I would even rent the property for more than it was advertised for due to this demand.  I can even remember as a Real Estate Agent trying to put an offer on a house in Royal Oak.  I would get the dreaded phone call from the listing agent.  We have several offers and we are asking everyone to make their highest and best offer.  In most cases this resulted in the home selling for more than the asking price in just a matter of days.

Now we all know we are far off from those times, but who knows what the future will bring.  If someone had told me the homes I was buying in the late eighties and early nineties where going to appreciate as fast as they did I would have told them they were crazy.

Seasons Greetings from my family to yours,

Chris Yatooma, President

Real Estate Investors Association of Oakland