Have you noticed an unusually large number of houses for
sale in your area? I have too! In the city of Berkley
there are more than 300 homes up for sale and the City is
sponsoring an “Open House” next month to showcase the City
and all the amenities it has to offer. They will also be
handing out maps indicating the location of each of the 300
+ homes up for sale. Berkley is not the only community in
southeastern Oakland County experiencing this huge
inventory of homes for sale. 
 
I quickly reviewed the web site www.realator.com and found
similar results in other neighboring communities. Since I
am most familiar with this area of the county, and I do
most of my investing in four or five cities, I decided to
look at the inventory in my “farm”. Low and be hold, the
numbers shocked me. For instance, both Madison Heights and
Hazel Park each had over 500 homes for sale. Ferndale had
over 650, and Royal Oak had well over 1,200 on the market.
Remember, these statistics do not include For Sale By
Owners, which would add to the numbers in each community. 
 
Houses are selling. Owners must price them right, based
upon recent sales, not on an appraisal from two or three
years ago. Sellers must also be willing to offer
concessions; buy down mortgage discount points for the
buyer to lower their monthly payment, and the home must
look clean, sharp, updated and standout from the rest of
the crowd. 
 
Most real estate professionals would agree that the market
is “soft”, and that metro Detroit is currently going
through a down cycle. But remember, real estate, like any
other investment, is cyclical and what goes down will
eventually come back up. There is a strong belief among
many real estate investors that this current down cycle
will probably bottom out in the next six to nine months, at
which time the market will change and we will see price
stabilization, modest increases leading to a full recovery
and greater price appreciation. 
 
Those of us who have been investing for more than twenty
years have seen down cycles before. Yes, we recovered and I
am sure we will again. Stick in there; look for those
super deals, make ridiculous offers, and see what happens.
Remember, only one of four things can happen with a
“low-ball” offer: the seller can ignore it; reject it,
counter it, or accept it. Go for it! 
 
Good Investing, 
 
Ron Watcke, President 
REIA of Oakland