Saturday, March 3, 2012

Sat Post #1: The higher end of the Detroit market...

Yesterday we took a look at the American housing market and how prices are so cheap that people are starting to buy in bulk.

In some places in Detroit, an entire city block of homes can be purchased for $50.  There are literally pages of homes on website available for under $500.

The immediate reaction is dismiss this because these areas aren't places you would want to live.  And as true as that may be, are the so-called 'million dollar crack shacks' we have seen profiled in areas of Vancouver places you really want to live?

Consider the other end of the spectrum in Detroit.

This 10,395 sq foot 7 bedroom, 5 bathroom mansion in prestigious Palmer Woods is described as being "a lovingly restored Baronial Tudor home boasting gigantic room sizes w/spectacular finishes T/O. Lrge walnut paneled central great hall w/frplc & art tiled flooring opens to huge living room w/carved marble frplc, dining room w/stenciled beamed ceiling & quartersawn oak lib w/frplc. Terrific bedroom suites w/art-tiled BA's & Ballroom & Billiard rms on 3rd flr. 2BR apt over garage."

Asking price is $750,000 and it has languished on the market for over half a year...

Too rich for you? How about this 4,387 sq foot 3 bedroom, 3 bathroom home also in Palmer Woods. It's promoted as a mediterranean villa boasting "exquisite art tile, elaborate woodwork & wonderful stained leaded glass. magnificient newer kitchen & master bath, originaly restored conservatory w/ fountain tranquil stone koi pond w/ fountain and gorgeous grounds."

Asking price? $445,000.

Asking a mere $275,000 (and languishing on the market) you can pick up this 2,626 sq foot Palmer Woods  3 bedroom 4 bathroom  home described as a classic all brick colonial on a quite cul-de-sac. New granite stainless kitchen, newer furnace, central air and a new roof.

Fannie Mae foreclosed on this 6 bedroom, 3 bathroom home sitting on a 22,300 square foot lot and they're hoping to get $289,900...

They aren't homes you can buy outright with one paycheque, but I think you'll agree... the disconnect is still profound.

Meanwhile... back in our neck of the woods the Financial Post commented yesterday on 'Why we're in trouble if housing craters.'

Increasingly it is becoming clear that we have not escaped the fate of the US, Spain, Italy, Ireland, the UK... and now Australia and China. We have only delayed it.


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