Have property values in Northern Michigan held, even with the slump in Southern Michigan? We've posted this to answer a question that we know is on the mind of many of our web visitors and as an example of the types of questions we'd love to hear from you.
2 comments:
That's a very interesting question, and one that has come up more and more over the past 12 months. I think it's important to realize that each segment of the market in Northern Michigan appeals to a completely different buyer. When the supply of buyers for one market segment falls off, it does not necessarily mean a fall off in other areas.
In our own experience, we've seen a noticeable shift in who the majority of our buyers are. 2 or 3 years ago, an overwhelming majority of our buyers were people from downstate looking for a weekend "cottage" within easy reach of home. Somewhere they could purchase for a reasonable price and spend Friday through Sunday enjoying Northern Michigan. In the past 12 months, we've seen many of those buyers fall away from the market due to the economic situation in Southern Michigan.
Fortunately for us, we've seen a huge influx of baby boomers who are preparing for retirement in the near future. A lot more of our buyers are coming from out of state and are willing to purchase properties farther from home, because it will be a seasonal or year round residence and they don't have to make the trip every weekend. We've also found that these individuals are looking for homes or premium properties at the higher end of the price spectrum because, again, this will be their home, not just a cabin. More high dollar properties have sold on many of the rivers we service in the past 12 months than had sold in the prior three years combined. At the high end, the market is very strong for properties with year round homes or ones that would make premium home sites. The place that deals are being found now are in smaller cabins and entry level vacant parcels. Especially for someone willing to put in some sweat equity, there are some terrific opportunities out there.
There are an awful lot of conditions that weigh into "market conditions" and if you have more detailed questions, feel free to contact us through the website.
The national media has done a good job of spinning doom and gloom. There's no doubt that areas of the country are experiencing difficult times. Want the facts on what's happening locally with recreational property in the market place? Let a professional realtor provide you with an analysis based on real facts about the sales trends. You may find sunshine behind that cloud!
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