LANSING – The state’s housing market has been steadily heading downhill since 2004, and Senate Fiscal Agency director Gary Olson said it will have to hit “rock bottom” before it turns back up again.

In some area, however, the concern is not as deep for builders.

Roger Papineau of Benzie, a former president of the Home Builders Association of the Grand Traverse Area, said “things look good” in Northwest Michigan.

“As I drive to my job, I pass probably five or six projects, just along Crystal Lake,” Papineau said.

“I don’t see the doom and gloom that the national news tends to portray.”

People will invest in vacation and retirement homes in Northwest Michigan, and don’t hope to turn them over in six to eight months, unlike other parts of the state, said Papineau. The visual appeal has contributed to the stability in the housing market n his area.

Scott Duensing of Traverse City, president of Home Builders Association of Grand Traverse Area Inc., agreed.

“I think that’s a relatively accurate statement,” Duensing said. “We’ve had some wonderful growth up here, especially in the high-end market.”

Right now, the hottest-selling houses go for $650,000 or more, Duensing said. Sales of low-end houses, around $150,000 and below, have slowed.

Olson said, “People will wait because they think the housing values are going to decline even more, but when the bottom hits, then we’ll start seeing values going up. That’s when things will start stabilizing.”

“I’m guessing that’s going to occur in the next year.”

Olson, who has met with the Michigan Home Builders Association, said home building companies are feeling the effects the hardest.

“The so-called building problems vary around the state,” Olson said. “But I doubt there’s any areas of the state that aren’t being impacted by it. Construction businesses are laying people off.”

Part of the reason is because construction companies are finding business elsewhere, said Lee Schwartz, president of the association.

“It’s a very tough time right now for home builders,” said Schwartz. “As this recession continues, the infrastructure that we need for residential construction and remodeling are going to places like to North Carolina, Tennessee and Texas, and when they leave they’re not coming back.”

The home building problem won’t be solved before Michigan’s ailing economy is taken care of, Schwartz said. If jobs come, the housing market will go back up.

“That’s the solution to everything,” Schwartz said.