As of 9/24/09
One of the most frequent questions I get is about home prices. Have we reached the bottom? Quite simply...no (but we're geting pretty close.)
There are 563 single family homes listed for sale in the five Grosse Pointes. That is down from a high of 787 listing in the spring of 2008. While that 28% drop is a great step in the right direction, we still have a long way to go. "Normal" inventory levels for us would be in the 325-375 range. Until we can get the inventory down to this level it is unlikely that we will see prices bottom out. While prices are still drifting lower and may continue to do so for at least a year, it is my opinion that, in percentage terms, we are nearing the bottom. There is a certain amount of intrinsic value in these homes and they will only go so low. At some point, and I believe we are there, they become such a bargain that they will sell in spite of the economy and the market. This will work to the benefit of The Pointes, but at the expense of other areas in Metro Detroit.