In the city of Warren, Michigan, the average house worth median is $124,500. The value of homes has increased a large amount in the last year—And that is 9.9 percent. There has been a forecast made that the cost of houses will decline by -2.5 percent in the following year.
In Warren, the per square foot list cost median is $114. The metro area of Detroit has a higher per square foot list cost median of $130.
$117,250 is the presently listed house cost median in Warren. For houses that have been sold in Warren, $109,900 is the cost medium.
As far as rent costs go, $995 is the median. This is lower than the metro area of Detroit which has a rent cost median of $1,150.
A part of the realty economy for all areas of the US is the rate of foreclosures. The health of the realty economy and the rate of foreclosures work inversely. The lower the foreclosure rate, the higher the value of homes in any area of the US.
When it comes to the process of foreclosure, the first step is when a home owner has a mortgage delinquency. A mortgage delinquency means that the owner of the home skipped making good on one or more of their mortgage payments.
Warren has 1.3 percent of its mortgages that are delinquent. The national mortgage delinquency rate is higher—1.6 percent.
Due to the recession of 2008, home values dropped nationally a greater amount than 20 percent. As a result there are lots of home owners who are currently experiencing being underwater regarding their mortgages. Being underwater on a mortgage means that the value of a house is less than the amount of mortgage debt.
16 percent of Warren homeowners are currently underwater regarding their mortgages. The Detroit Metro area has a lower percentage of homeowners being underwater on their homes—11.4 percent.
The annual median household income in Warren, Michigan is $43,500. The income per capita is $21,762, including all adults and children.
Early in this article it was pointed out that 9.9 percent was the increase in value of Warren homes in the last year. This is wonderful for sellers. But, it can be incredibly discouraging for many of those who want to enter the home ownership market – especially so for the younger generation of people who do not have enough money saved to purchase a home.
The author of this article believes it’s important to not only help readers by pointing out the statistics of real estate in a particular city, but is also important to help those want to enter the real estate market, and cannot afford it, do so. This makes the statistics alive and relevant for these people
How do they form a savings plan when there are such big increases in the value of houses they are interested in. They could form a 7 year plan in which they need, for example, $30,000 to save for a home. But, by the time 7 years goes by home prices may have increased by 50 percent, and they need another few years to save enough money to qualify.
Another big challenge is that so many of those young people who are saving to buy a house are renting a place to live - thus they are most likely experiencing escalating rent prices.
The solution is to be on a savings plan that is aggressive. The plan needs to have a built in estimation of annual increase of real estate values. Of course this is a very difficult estimation to make. All you can do is do your best estimate from those “in the know” (real estate experts, economists, etc).
Part of the magic of being able to save is being strong in the principle of self-discipline. Self-discipline yields freedom – many freedoms. One of them is home ownership. Another freedom is the end of living in a rental with escalating rent.
A major part of self-discipline is at times doing what you don’t want to do so you can do what you want to do. It’s postponing gratification to get a better result, and a better life. What if you cut down on eating out, going to movies, clothing purchases, did less expensive vacations, etc.? What if you worked extra hours, and worked to advance your career to get higher income?
What if you took the extra money and put it into savings? And 7 years into it you purchased a home. And what if 8 years later your standard of living was high enough that you had plenty of money to travel, to buy nice things, to dine out at nice restaurants, buy fine clothing, etc.? Would it be worth the years of self discipline? What if your children enjoyed a higher standard of living than you had in your past?
What if you had the time to dedicate part of your life to causes and charities to help make a better world?
And what if your savings and investment plan was working so well that you were building up a serious amount of savings and investments – resulting in your future getting better and better? Think of the freedoms and fun you could have. Think about how much stronger you could be in helping others have a better life.
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