New podcast question suggestion

[Lane Kawaoka]

Just a thought of a new question to ask guests is to ask what their opinion of the economy and RE market. It's an unscientific way of reading the market and trying the forecast but it's interesting to hear a viewpoint. Many people really perk up during REIA meetings when this topic comes up. Although it's really like looking at their crystal ball. @Brandon Turner

[Tom A.]

This is what @Jay Hinrichs refers to, the brutal crash about nine or ten years ago. Major kudos for getting out when you did and minimizing the damage. (This is MLS data for median priced 3-4 bd brick houses over the last 10 years.)

On the other hand, guys like @Richard Dunlop have the following chart as their basis of experience. (Same criteria as above, but over the last 5 years.)

There's a very different perspective among folks who bought in '09 or later compared to anyone who bought pre-crash. Prices started moving in the last couple years. It's certainly still a market I wouldn't recommend to most investors but there's some momentum finally at all price ranges.

Here's a chart of sales over $200K over the last 10 years. These are typically either larger historic homes in prime neighborhoods or newer condos/lofts downtown or midtown. There are more $200K+ sales now than in the pre-crash good days.

Obviously these and the bread-and-butter rental stock are two totally different segments of the Detroit housing market. What it shows however, is that there is also a resurgence in the segment of the housing market that appeals to young professionals and others who seek an urban lifestyle, and live in the city by choice, not necessity.

Disclaimer: Detroit is very much still a difficult market for the average investor. Invest elsewhere unless you're sure you know what you're doing.