Ruled by the French who wanted to Europeanize the native Americans, Michigan was a trading frontier (furs) until forts were established to protect French interests. Fort Ponchartrain du Detroit, commanded by Antoine de la Mothe Cadillac, grew to be called Detroit, the flagship city of the American automobile industry. (Cadillac became the flagship automobile product line of General Motors, headquartered in Detroit.)

In the 1970s, the American automobile industry began to lose world-wide market share due to two major events - the launch of low-cost Japanese imports flooding the market, and the oil embargo of the mid-70s that immediately made the large V-8 engine almost obsolete overnight. Luxury became defined more by foreign imports such as BMW and Mercedes, which won American car buyers over with their reputations for reliability. Putting the final nail in the coffin were the elimination of consumer tax deduction on the interest on car loans and the introduction of luxury versions of popular Japanese imports.

If only the automobile lobby were as consumer-driven as the real estate lobby led by the National Association of Realtors. (The NAR has managed to annually beat back Congressional attempts to eliminate the mortgage interest tax deduction for decades.)

Detroit has lost over half a million residents since the 1970 census as the automobile industry continues to face competitive labor challenges, and the city attempts to bring in a more diversified economy. Recent sales of automobiles have helped support the city as well as the nation's economy in recent months.

"According to the National Association of Realtors, the year 2001 set a record in existing homes sold," says Realtor Alice Baetz. "Low interest rates were a big factor. On top of that, Alan Greenspan's recent report to Congress noted that our economy is on the way back - fueled in large part by consumers' purchases of big ticket durable goods such as automobiles and houses.

"The local real estate market is also picking up," continues Baetz, "and there are some terrific homes for sale and interest rates are still very favorable. In the last month there has been more of an "urgency" on the part of some buyers - those who would not start looking until their homes were sold and now they must find a replacement home."

"Detroit homes are averaging 84 days on the market in the 80k to 150k range," says Realtor Terrence T. Lane. "More expensive homes are taking longer to sell. Homes that are priced right will sell, and sometimes faster."

In the Detroit suburb of Gross Pointe, listings statistics are interesting, says Realtor George Smale.

"Sold properties in Grosse Pointe have an average market time of 82 days and an average selling price of approximately $300,000," he explains. "Listings still on the market have an average market time of 83 days and an average list price of $622,323.

"Total solds - 137. Total listings - 306," says Smale. "For buyers there is still a very large inventory to choose from. For sellers, it is still a good time to sell; however homes need to be priced properly and have a comprehensive marketing plan and strategy to reach all potential buyers."

Meanwhile, buyers in Dearborn, home of Ford Motor Company, are waiting and seeing.

"The slow down in the US economy and, in particular, the layoffs in the auto industry have had a major effect on the Dearborn area real estate market," says Realtor Steve Hatfield. "Many potential homebuyers and sellers have been sitting on the fence and playing the wait and see game. It is this writer's opinion that home prices have actually come down 3% to 5% during the last six months. This is due to the basic principle of supply and demand. If the general economy continues its rebound, more buyers will enter the real estate market causing home prices to start rising again. By this time next year area homeowners should start to see the same 5% to 8% yearly appreciation in home values that they've seen in the past few years."

Published: May 23, 2002

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.