Michigan Real Estate Update
Like the rest of the nation, Michigan continues to struggle economically as a result of the current recession that began in the fall of 2008. Although many real estate experts urge Michigan residents that now is the ideal time to invest in Michigan real estate, many people are hesitant to buy due to high unemployment rates, the difficulty in selling their previous home, and a lack of consumer confidence. Nevertheless, many experts believe that the real estate market will fair relatively well over the next few months compared to other markets in the nation.
According to the Grand Rapids Press, the annual West Michigan Economic and Commercial Real Estate Forecast expressed a concern for the Michigan real estate market that is believed to struggle somewhat as more and more homes are foreclosed on and less and less people are interested in buying. Nevertheless, those who are willing to search for Michigan homes for sale will find numerous bargains as more and more sellers are desperately reducing home prices in order to attract buyers. The industrial real estate market has fared well throughout the recession, with lower-than-average vacancy rates due to the large variety of modern, industrial facilities that were constructed prior to the 2008 recession. The only major trouble foreseen in the industrial real estate in Michigan is high-tech professions such as doctors leaving older offices for newer, high-tech offices. Because of the large supply of industrial real estate in Michigan, property prices are very affordable.
The grand rapids Press also reports that real estate in Grand Rapids area have declined during the year of 2008. However, many experts believe that 2009 will end with much improvement. Unemployment rates may pose a problem to the recovery of the real estate in Michigan because with an unemployment rate of 9.6 percent, Michigan has the highest unemployment rate in the country. Another problem is that 39 percent of Michigan homeowners owe more on their house than what it is currently worth. Experts believe that the real estate in Michigan cannot fully recover until job security is no longer a problem and consumer confidence is back up.