Wednesday, March 21, 2007

Detroit Breakdown-Motor City Shakedown

Searching for good real estate buys. maybe you should be shopping in Detroit..I just read an article in the China Daily News...I guess this wasn't something the American Public is ready for but Houses are selling for less than Cars in the "Motor City." This doesn't bode well for what once was the Industrial Heartland of the USA. The failing automobile industry has laid thousands of workers off. People, unable to pay mortgages, see their houses end up in auction.

"At least 16 Detroit houses up for sale on Sunday sold for $30,000 or less."

"A boarded-up bungalow on the city's west side brought $1,300. A four-bedroom house near the original Motown recording studio sold for $7,000."

What will likely happen here is that conditions will get worse and speculators/investors will feed off the misfortune of people that were unable to make that house payment. Maybe dad worked for FORD and lost his job to someone making cars in Mexico or Canada.

Another story by CNBC correspondent
Sharon Epperson :Reports on the sagging prices for Real Estate in the Detroit area. She focused on the Million Dollar mansions that are up for sale at bargain prices. Her article is more like a sales pitch for a 30 room, 2 acre mansion that's been up for sale for 2 years now.

Too bad the leaders of our Government and Industry have been so hell bent on the continuing dependence on oil and the internal combustion engine that we haven't been the leaders in a much needed industrial boom in alternative energies and fuel efficient cars.

Instead we are focused on being the World Police and producing and selling enough weapons to keep that industry alive and well. In a 2006 report the USA led other nations in Arms Sales at over 97 Billion dollars worth or 36% of total arms sales worldwide. Russia only accounted for 16% and the peaceful French a mere 11%, or 30 billion.

So an American City once famous for it's cars dies slowly. It's industry, like the dinosaur, could not or would not adapt to the ever changing world. A place once alive with busy factories and where Music too once called home is now just up for auction. It's truly a Motor City Shakedown.


kip said...

Good point about our failure to adapt. Maybe I should invest in some Michigan real estate.

TOM said...

I'd say it's a buyers market now...I just wonder what kinds of businesses will make it there. Thanks for your comment