Oakland County is on its way to setting a record this year for not only foreclosures but also declining property values. More than 7,000 Oakland County homes could be lost to foreclosure by the end of the year, the highest level ever, and housing values on average are flat to falling because of it.  The county recorded 585 mortgage foreclosures in May for a total so far this year of 2,946 and a five-month pace that could mean 7,070 foreclosures by the end of the year. The county recorded 4,881 foreclosures last year. *

These are properties that are hitting the market and dragging down prices are on pace for the worst year in property value growth in 30 years. Oakland County has been proactive. Hiring housing counselors and launching a series of home retention seminars called “My Home, My Future” around Oakland County will help homeowners facing foreclosure.

The foreclosures have ripple effects across the county's economy. Houses are being vandalized and stripped of siding and metals.  It impacts code enforcement at the local community. It's also costing the mortgage companies and banks. They don't want this glut of housing on their rolls. The positive side of this sluggish housing Market is the never ending supply of good deals out there.   I remember during the housing boom of the 90’s it was like a treasure hunt trying to find those “good deals” it seemed like everyone out there from teachers to accountants were real estate investors.   Now they are coming across my desk in a never ending supply.  In this ever changing market I think its import that we as investors change with it or become extinct.  I heard this saying a year ago, “if you always do what you did you will always get what you got”.

Happy investing,

Chris Yatooma, President
Real Estate Investors Association of Oakland

*source Oakland press