FeedsHome sale figures sought
A steep decline in home purchases in Michigan concerns Romulus officials enough to touch base with developers to see how fast their homes are selling.
Tim Keyes, the city economic development director, said the sluggish market is something officials will keep an eye on going forward, but added that he’s not worried that the city will end up with a glut of empty new homes, or that current development projects will stall because of a lack of buyers.
“We cannot tell developers they cannot build homes here, that would be illegal,” he said. “But we can make sure they build according to our master plan, and our zoning. We are lucky in that we have experienced growth that is sustained. Some communities experienced an explosion of building, and now are stuck with homes (without an occupant).”
Currently, there are about four residential subdivisions planned to add homes or condominiums: The Gateway project, Avalon Meadows, Legacy Park, and the Highlands.
Michigan, which still has the highest unemployment rate in the Unites States, has experienced a conversion in the real estate market. Stories of residents trying to sell their homes to no avail have been played up in the local media.
During the past five years, about 1,000 new homes have been built in Romulus. Most have met with brisk sales so far, Keyes said. But with layoffs at the Big Three automakers and Northwest Airlines – one of the largest employees in Romulus – for sale signs have also cropped up.
“I think it’s a soft market across the United States, absolutely,” said Councilman William Crova. “I don’t think it’s specific to us. We were after rooftops – it’s something we wanted, and we’re in western Wayne County, where in many aspects, it’s still growing.”
Others aren’t so sure.
“It seems like every fifth home you see is up for sale,” said Councilman Harry Crout. “There’s a lot of reasons for that, but frankly, I’m concerned there won’t be a market for some of these newer homes. When you look at the economy – people are moving out, people are taking concessions in their pay – who is going to be able to afford some of these homes?
Crout also said the overall state of the economy and taxes may not be a harbinger for continued momentum in home sales, especially in Wayne County.
“Foreclosures in Wayne County are at their highest levels ever,” Crout said. “There are so many people that are telling me that taxes are too high, and that they just can’t afford to live here. They can go to Van Buren Township and pay significantly less in taxes for the same house.”
J.R. Rhotan, who owns a real estate company in Romulus, said that from his perspective home sales are flat, and some are staying on the market longer.
“There doesn’t seem to be any more for sale this year than last year,” he said. “They’re going for less, though. All in all, there’s some great buys out there.”
Still, Keyes said he believes the city will not end up with a glut of homes.
“These are very smart people (developers) we’re dealing with, and they’re very cautious about the conditions under which they build,” he said. “We’re going to have a conversation with them to keep the lines of communication open.”
