Letters

Letters 10-27-2014

Paging Doctor Dan: The doctor’s promise to repeal Obamacare reminds me of the frantic restaurant owner hurrying to install an exhaust fan after the kitchen burns down. He voted 51 times to replace the ACA law; a colossal waste of money and time. It’s here to stay and he has nothing to replace it.

Evolution Is Real Science: Breathtaking inanity. That was the term used by Judge John Jones III in his elegant evisceration of creationist arguments attempting to equate it to evolutionary theory in his landmark Kitzmiller vs. Dover Board of Education decision in 2005.

U.S. No Global Police: Steven Tuttle in the October 13 issue is correct: our military, under the leadership of the President (not the Congress) is charged with protecting the country, its citizens, and its borders. It is not charged with  performing military missions in other places in the world just because they have something we want (oil), or we don’t like their form of government, or we want to force them to live by the UN or our rules.

Graffiti: Art Or Vandalism?: I walk the [Grand Traverse] Commons frequently and sometimes I include the loop up to the cistern just to go and see how the art on the cistern has evolved. Granted there is the occasional gross image or word but generally there is a flurry of color.

NMEAC Snubbed: Northern Michigan Environmental Action Council (NMEAC) is the Grand Traverse region’s oldest grassroots environmental advocacy organization. Preserving the environment through citizen action and education is our mission.

Vote, Everyone: Election Day on November 4 is fast approaching, and now is the time to make a commitment to vote. You may be getting sick of the political ads on TV, but instead, be grateful that you live in a free country with open elections. Take the time to learn about the candidates by contacting your county parties and doing research.

Do Fluoride Research: Hydrofluorosilicic acid, H2SiF6, is a byproduct from the production of fertilizer. This liquid, not environmentally safe, is scrubbed from the chimney of the fertilizer plant, put into containers, and shipped. Now it is a ‘product’ added to the public drinking water.

Meet The Homeless: As someone who volunteers for a Traverse City organization that works with homeless people, I am appalled at what is happening at the meetings regarding the homeless shelter. The people fighting this shelter need to get to know some homeless families. They have the wrong idea about who the homeless are.

Home · Articles · News · Letters · A home buyer‘s...
. . . .

A home buyer‘s Paradise...Lost?

Robert Downes - February 21st, 2011
A Home Buyer‘s Paradise... Lost?
Here in the Midwest, we live in a home-buyer’s paradise compared to much of the rest of the world. Realtor Jack Lane (who hosts a real estate show on WTCM-AM) notes that the median price for a home in Grand Traverse County in 2010 was $145,000. The region’s high is Leelanau County, where the median price was $205,000 last year. In Kalkaska County, however, the median price was just $65,000. The median price for a home in Petoskey is reportedly $169,000.
By contrast, the median price for a home in San Diego County last year was $305,000. It was $225,000 in Denver and $205,549 in Fort Lauderdale.
So we’ve got some bargains in Northern Michigan (Leelanau County notwithstanding) and you’d think there would be something of a land rush on here in the region.
What’s holding people back?
“History will show you that most people will wait and wait, hesitant to act before the entire crowd acts,” Lane says. “Therefore, not until interest rates begin to rise and headlines begin to say ‘Housing recovers!’ will you see the market kick back to the levels of ten years ago. Most buyers need ‘the psychological permission’ of the masses. The really smart people are either already wading into the water or are donning their hip-waders as you’re reading this.”
He adds that banks have largely returned to the practice of requiring 20% as a down payment on a mortgage (although the federal government is already backing 3% down loans). Banks are also dishing out the tough love for people with bad credit.
So, imagine a young family trying to come up with a 20% down payment on a $145,000 median-priced home -- that’s $29,000 -- a lot of loot if you’ve got kids and an iffy job situation, not to mention the closing costs. Or, imagine the well-off couple in the $100,000-$175,000 income range, who (as Lane notes) “tend to have typically less than stellar credit.”
Both parties may be out of luck in their hunt for a home for the time being.
Here’s what Lane says is the problem with today’s home-buying market, in order of importance:
1. Consumer confidence in real estate remains low. Until people again believe buying real estate is a wealth builder, the market will not flourish.
2. Banks have eliminated a big chunk of the potential buying market with their new (or shall we say old) requirements of a 20% down payment.
3. Low appraisals (referencing distress sales) are coming in below purchase prices and thus killing deals.
4. High-end speculators, who pushed the 1990-2005 real estate craze -- have also disappeared from the buyer pool, further exacerbating the home supply problem.
Another problem:
“We overbuilt and underfunded for a long, long period. In 2005, 26% of all sales were second home sales,” Lane says. “An absurd number! When we were kids, you could count on about two hands all of the people in town who had two homes; 26% was a preposterous level. My guess is that maybe 7-10% of all people are economically fit to own more than one home. So, now we have to wait until all that overbuilt supply is sold/foreclosed on or torn down and markets adjust, price-wise, before what’s left of the demand side of the market gets anywhere near back in line with the supply.
“This means construction isn’t about to come back any time soon, absent some wildly innovative government program that doesn’t appear to be on the horizon. We’re building less housing units in America, today (300,000) than at any time since 1960. And there are 135 million more people now than there were then.”
Real estate certainly isn’t dead in the water in Northern Michigan, however. The five-county area including Grand Traverse, Leelanau, Benzie, Antrim and Kalkaska accounted for 2,045 homes sold last year, with more than half of them (1,087) sold in Grand Traverse County.
If you’ve watched the real estate listings over the past year, you can’t help but notice there are a lot of bargains on the market Up North and in Michigan in general (in Detroit, HUD homes are going for as little as $1,200).
My wife and I enjoy watching the HGTV home & garden channel at night, with shows such as “House Hunters” and “Property Virgins” depicting the search for housing all over the world -- Cairo, Copenhagen, Toronto, northern France, the Seychelle Islands -- you name it. We can‘t believe the insane prices for homes elsewhere, even for properties that look like dumps. Often, you see couples on these shows shelling out $500,000 or so for homes that would go for one-quarter of that here in Northern Michigan -- still a home-buyer’s paradise.


 
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