There is a website that tracks this information and estimates the market for up to two years.
Their answers are in the form of percentage that property values will increase or decrease, not that they will drop. And, of course there are disclaimers.
I will need to look up the documents on the website, if you would like their latest estimates email me. It will take a day or so for a response due to my personal schedule.
I would really like to tell you things will rebound and be great in that timeframe ... but the fact is that we just don't know. It depends on numerous factors, including:
1. What will our leaders do to bring in new industry?
2. What will happen with the automotive industry?
3. What will the government do to stabilize and incent growth?
and on, and on. The bottom-line is that it is TRULY an amazing time to purchase real estate in SE Michigan. If you don't have the staying power (i.e. you may be moving out of the area), then it might not be the decision for you to purchase, but in-time an investment now in Michigan real estate should be quite sound.
Derek Bauer, Associate Broker / Realtor
Real Estate One
734.678.4745 - cell
If you believe that the government's stimulus steps will actually result in a continued decline in housing prices (there is some pretty good evidence that this is going to be the case), then it would be a good time to buy inexpensive houses that you could rent, since there will probably be more demand for rentals.
If you believe the stimulus steps will result in a complete economic turn-around (I don't think that it will), then it would also be a good time to buy inexpensive houses which would, hopefully, increase in value and which could generate positive cash flow from rent while you were waiting for the value to go up.
If you're not able to financially withstand a continued drop in the value of your investment properties, then perhaps you'd better not buy.
If you're looking for a single home that you will live in for a long time, then it's a good time to buy. This is because both mortgage rates (for now, at least) are low and prices are low and still going down in many places. If your house is going to be your home, you're getting your money's worth out of it simply in terms of enjoyment. Just don't plan on selling at a profit anytime soon.
There will probably be other answers to this question which will take opposing viewpoints, so you'll have to try to pick the right answer for you.