The post on the remarkably low-priced house on Woodside Drive generated a lot of comments from readers. I asked Ryan Eashoo, a real estate agent I interviewed in Flint this summer, to offer his perspective on the house and the Flint market. Here's what he had to say:
The home at 1143 Woodside Dr., Flint, MI 48503 does indeed have an offer on it at this time due to the low list price. Unfortunately, the City of Flint has witnessed a steep decline in real estate market values over the past 3 years. In the news you hear of a price decline of approx. 10% in values, however, it has been my experience in the City of Flint that homes are worth 50% + less than what they were just 5 years prior. This is due to the high volume of foreclosure listings and sales in the area.
I find that the banks selling their foreclosure listings are pricing them under market value, making other homes around them worth less as well. The home on Woodside was a (meaning the seller is working with the bank to sell for less than what the home is worth) and a majority of sales transactions in the College/Cultural neighborhood are . Homes are no longer worth what they were purchased for originally. It is like putting good money after bad and many clients want to move from a home they owe tremendously more on than what it is worth. Right now, there are no homes in the college/cultural area listed over $179,500.
The home on Woodside is a beautiful home and is priced correctly for this market. Below are some additional homes in that neighborhood and what they are selling for as well as other properties in the City of Flint with similar sq. ft.:
I know it is sad, but this is how the market here is driven. We originally listed this home at $149,900 and progressively lowered the price throughout the months it was listed to get an offer. Many clients are moving away from the City of Flint as the prices of homes in the suburbs have declined as well and are just as affordable as the urban listings. The City of Flint school district does not have a good reputation and I find few clients with children moving to the City who are sending their children to city schools and this plays a major factor as well.
I could ramble on all day about real estate in Genesee County, but I won't. Like everything else in a market driven economy, price decline and incline are cyclical and this is typical. Right now, I do not believe we have hit the price bottom for real estate and experts are saying (and I agree) that it will take the next decade for to start rising again. Apart from all of the doom and gloom, homes are selling and now is an excellent time to buy. If one needs to sell their home, it can be done now as well, but it takes some creativity on the part of the seller and Realtor. I do believe the foreclosures will start to dry up in the next few years and the market will be less saturated with them and real estate in general will improve. Working in one of the toughest real estate markets in the county, I can definitely attest to this!
Here's the rest of the original post:
If four houses in Beecher for $4,000 isn't your style, how about 3,000 sq. ft. of Tudor splendor off East Court Street listed at $74,000, which is about three years rent for the average San Francisco couple. According to Zillow.com, it sold in 2001 for $225,000.
Thanks to Betsy for pointing this house out.
UPDATE: Mark J. Perry at the Carpe Diem blog estimates what a typical mortgage payment would be for this house on Woodside Drive: $326.44/month.