Letters

Letters 08-31-2015

Inalienable Rights This is a response to the “No More State Theatre” in your August 24th edition. I think I will not be the only response to this pathetic and narrow-minded letter that seems rather out of place in the northern Michigan that I know. To think we will not be getting your 25 cents for the movie you refused to see, but more importantly we will be without your “two cents” on your thoughts of a marriage at the State Theatre...

Enthusiastically Democratic Since I was one of the approximately 160 people present at when Senator Debbie Stabenow spoke on August 14 in Charlevoix, I was surprised to read in a letter to Northern Express that there was a “rather muted” response to Debbie’s announcement that she has endorsed Hillary Clinton for president...

Not Hurting I surely think the State Theatre will survive not having the homophobic presence of Colleen Smith and her family attend any matinees. I think “Ms.” Smith might also want to make sure that any medical personnel, bank staff, grocery store staff, waiters and/or waitress, etc. are not homosexual before accepting any service or product from them...

Stay Home I did not know whether to laugh or cry when I read the letter of the extremely homophobic, “disgusted” writer. She now refuses to patronize the State Theatre because she evidently feels that its confines have been poisoned by the gay wedding ceremony held there...

Keep Away In response to Colleen Smith of Cadillac who refused to bring her family to the State Theatre because there was a gay wedding there: Keep your 25 cents and your family out of Traverse City...

Celebrating Moore And A Theatre I was 10 years old when I had the privilege to see my first film at the State Theatre. I will never forget that experience. The screen was almost the size of my bedroom I shared with my older sister. The bursting sounds made me believe I was part of the film...

Outdated Thinking This letter is in response to Colleen Smith. She made public her choice to no longer go to the State Theater due to the fact that “some homosexuals” got married there. I’m not outraged by her choice; we don’t need any more hateful, self-righteous bigots in our town. She can keep her 25 cents...

Mackinac Pipeline Must Be Shut Down Crude oil flowing through Enbridge’s 60-yearold pipeline beneath the Mackinac Straits and the largest collection of fresh water on the planet should be a serious concern for every resident of the USA and Canada. Enbridge has a very “accident” prone track record...

Your Rights To Colleen, who wrote about the State Theatre: Let me thank you for sharing your views; I think most of us are well in support of the first amendment, because as you know- it gives everyone the opportunity to express their opinions. I also wanted to thank Northern Express for not shutting down these types of letters right at the source but rather giving the community a platform for education...

No Role Model [Fascinating Person from last week’s issue] Jada quoted: “I want to be a role model for girls who are interested in being in the outdoors.” I enjoy being in the outdoors, but I don’t want to kill animals for trophy...

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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