How you can tell if home values will rise or fall

You often hear me talk about inventory.

And there is a good reason for that.

You see, when you compare it with the number of sales being made each month inventory can give you a good idea of how healthy a housing market is.

What you are looking for is how quickly property is selling.

You can work this out for any market pretty easily.

You simply divide the inventory by the number of sales per month.

Your result is the number of months of inventory available.

What does your result mean?

As a general rule:

  • Over 6 months of inventory and you have buyer’s market
  • 5 to 6 months is considered a balanced market
  • Less than 5 months and you have a seller’s market

Let’s take Detroit as an example…

At the end of October 2017 there were 12,566 single family homes on the market.

And there were 5,446 sales.

That means there was only 2.31 months of inventory available.

So using this measure Detroit is considered a seller’s market.

This usually means property is selling quickly and sellers are less likely to negotiate on prices.

And it is certainly true that inventory in Detroit has dropped rapidly.

In fact, from a peak of 84,312 in August 2008 it has fallen by 85.10%.

Take a look for yourself…

Inventory of single family homes Metro Detroit


(Source: Department of Numbers)

Inventory levels are particularly important for investors as they’re closely linked to price growth.

When inventory is high prices tend to stagnate and fall.

When it is low prices often rise quickly.

It is simple supply and demand.

And if you take a look at sales prices in Detroit for the same period, you will see there is a lot of truth in this…

Median Sales Prices Metro Detroit 2006 to 2017

As you can see, when inventory was very high prices fell rapidly.

But since March 2011 they have been bouncing back.

And it won’t be long before Detroit prices are over their peak levels.

But the good news is I can still offer you fully refurbished, tenanted properties well below current market value.

And you will enjoy high rental returns while you watch the value of your properties continue to climb.

So if you would like to see a full list of investment properties in Detroit – just reply to me.

Let’s have a quick look at a few that are available right now.

This one is on Strathmoor Street in Fiskorn…

Strathmoor Street in Fiskorn

Fiskorn is a small neighborhood in Northwest Detroit bordering Grandale and Dearborn.

It is 14.3km from downtown Detroit or a 17 minute drive.

Many people living in Fiskorn work in Dearborn which is just a 5 minute drive from this property.

This is because property prices in Dearborn are much higher than in Fiskorn.

But it also means demand for housing is high.

And this is already starting to push up property prices and rents.

So you are likely to benefit from strong capital growth.

This property is only 300 meters (0.2 miles) from Ford Elementary School and the shops, banks and restaurants on West Chicago Boulevard.

Doan Playground and Breithaupt Career and Technical College are within a 10 minute walk.

The house has 3 bedrooms, 2 bathrooms, a living room, a kitchen, a 650 sq. ft. basement and a 4,922 sq. ft. garden.

It is on offer for US$ 49,495.

Your monthly rent is US$ 850.

Your net yield is 16.14%.

That’s US$ 7,990 in your bank account every year.

Want full details?

Simply reply to me.

This place is on Runyon Street in Osborn…

Runyon Street in Osborn

Osborn is an established neighborhood in Northeast Detroit.

It is 15km from Downtown Detroit or a 19 minute drive.

Many people who live in Osborn work in Warren, which is just a 10 minute drive.

This is because properties in Warren are at least 3 times the price of property in Osborn.

That means there is high demand for houses in Osborn and prices are rising fast.

This property is only 200 metres from the shops, banks and restaurants on 7-Mile East, Brenda Scott Academy and Optimist-Parkgrove Playground.

And just 10 minutes’ walk to Osborn High School, Turning Point Academy and Bel Air Center.

Top ranking Osborn Evergreen Academy of Design is just 300m away and Fleming Elementary School is a 15 minute walk.

The house has 3 bedrooms, 2 bathrooms, a living room, a kitchen, a 650 sq. ft. basement and a 4,356 sq. ft. garden.

It is on offer for US$ 44,995.

Your rent is US$ 725 per month.

Your rental yield is 14.33% net.

That’s US$ 6,450 in your pocket every year.

Want to know more?

Just reply to me.

This last one is on Binder Street in Conant Gardens…

Binder Street in Conant Gardens

Conant Gardens is in Northeast Detroit and borders Hazel Park.

It is 16km (10 miles) from Downtown Detroit or a 15 minute drive.

Conant Gardens is 4.5km (2.8 miles) from Michigan State Fairgrounds.

Michigan State Fairgrounds is undergoing a huge transformation which includes 1,100,000 sq. ft. of retail space, movie theatres and office space.

On top of that, there are plans for a transportation hub with rail and bus links to Downtown Detroit and Ann Arbor.

This means demand for housing in Conant Gardens is high.

And property prices and rents are rising fast.

So you are likely to benefit from strong capital growth.

This property is only 200 meters (0.1 miles) from Farwell Field and the shops, banks and restaurants on 8 Mile Road.

Saint Bartholomew School and Pershing High School are a 10 minute walk.

The house has 3 bedrooms, 1 bathroom, a living room and a kitchen.

There is also a 600 sq. ft. basement and a 4,008 sq. ft. garden.

This property is on sale for US$ 41,495.

Your rent is US$ 750 per month.

Your net return is 17.20% – after all expenses.

That’s US$ 7,139 in your hand every year.

If you’d like to know more – simply reply to me.

Remember all our USA investment properties are:

  • Fully renovated – average cost of works US$ 20,000
  • Freehold with full warranty deed
  • Already tenanted with pre-screened tenants – you get paid from day one
  • Professionally managed – your rent is paid on time into your own bank account

Plus, with our Detroit properties you get all this completely free:

  • Free Title Insurance – value US$ 499
  • Free 1 year Property Insurance – value US$ 495
  • Free 12 month Home Warranty – value US$ 700

Total value = US$ 1,694.

I won’t offer you unrealistic guarantees which can’t be fulfilled, like some people I could mention.

But I do promise you…

  • Your vacancy rates will be very low (last 3 years 3.58% average)
  • You will always get paid what you are due
  • I will stay right by your side for as long as you own your property

It doesn’t matter if it’s 3 months or 30 years – if you have a problem I’ll be here to help.

Because I know that if you get the returns you are expecting you’ll come back for more.

You might even refer your friends and family, if I’m really lucky.

And unlike many of my competitors I don’t charge you a finder’s fee, an enabling fee or an arrangement fee.

In fact I don’t charge you any fees at all.

So if you would like full details of what’s on offer in Detroit – just reply to me.

Best,

Rebecca

Copyright OVG Invest Co. Ltd. 2009 - 2019
Email: info@ovginvest.com
Tel: +852 3101 7075 - Fax: +852 3101 7076
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