Interesting question! I work at a real estate appraisal firm out in
Southern California, Accutech Evaluations, and I do a lot of research
on the national market. Now, as far as the Midwest goes, most property
there appreciates at a normal rate of appreciation (around 3.5%
annually). Now, I'm not an expert in Michigan, but I do know that
Canton is just outside of Detroit. Because it is near a metropolitan
area, this area could be a smart investment. The appreciation of
Detroit in the past five years has far outpaced the rest of the
Midwest, with home values increasing around 16% this year. However, it
is also considered to be a city where properties are overvalued in
recent studies. (Sorry, the name of the organization who does the
studies temporarily escapes me. I'll post it later if I can find it.)
Also, there is much speculation as to whether there is a "housing
bubble" or not, and many researchers who do not make their living off
of the real estate industry are saying that the alleged bubble is set
to burst. My advice: if this is an investment purchase, hold off on
it. If you are looking to buy a home that you are going to live in for
at least five years, go ahead with it. Any home that you can be happy
in for many years to come is worth the investment, and it will
inevitably ride out any fluctuations in the market.
As far as the age of your home, that does not matter nearly as much as
the condition it is in by the time you sell it. If you buy a home and
completely remodel the kitchen, bathroom(s), put in new flooring, a
new roof, etc., those improvements are really what make the difference
in increased value, not the actual age of the home. (Note that home
improvements over five years old typically are not considered new, and
therefore are far less likely to increase a home's value.)
I hope this is helpful! Best of luck to you in your real estate ventures.
- (emartin4444, Accutech Evaluations, LLC) |
