Real Estate Pro Articles

Finally, Detroit Foreclosure Listings Allowed Prices to Rise

[Valid RSS feed]  Category Rss Feed -
By : John Cutts    99 or more times read
Finally, after months of continued price fall, Detroit foreclosure listings have allowed home prices to rise up from the depths.

In February, the median home sales price increased year-over-year by 22 percent to $7,005, a price still unbelievably low when compared to prices in other places. The $8,000 federal tax credit is even higher by nearly a thousand.

The sales price median for non-distressed properties also improved, posting a stunning 64-percent jump to $15,500.

Analysts said that the resurgence in interest in Detroit foreclosures could have pushed up prices, as total home sales in most parts of the Detroit metro area increased in February.

Based on sales figures from real estate firm Realcomp II, home sales in Oakland County jumped up by almost 25 percent year-over-year. Sales in Livingston County and in Macomb County also climbed up by 18 percent and 6.4 percent, respectively.

House sales, however, still decreased in Wayne County, where Detroit is the central administrative city, by 6 percent. Within the city of Detroit, home sales plunged by 23.5 percent.

Robert Taylor, head of the Michigan Association of Realtors, said that the market is still dominated by sales helped by the first time buyer tax credits.

Detroit now is in the midst of an urban redevelopment plan proposed by Mayor Dave Bing and his urban planners. They are envisioning a smaller but smarter city arising from the ashes of foreclosure listings in Detroit.

One proposal seeks to convert neighborhoods filled with abandoned foreclosed properties into open spaces while another seeks to move people into the center of the city where people can work, live and have some recreation.

According to Mayor Bing, he has looked at studies about the city, including the report issued by the city-nonprofit coalition Detroit Data Collaborative. The report, based on a survey of every block in the city, stated that about one in every three parcels in the city contains abandoned homes or vacant lots and that most of these abandoned properties are in the eastern side and center of the city.

Mayor Bing reiterated the need to save Detroit, which has shrunk from 1.8 million residents in 1950 to only about 900,000 people in 2010.

The recently announced plan of the Detroit Public Schools to close about 45 schools can be seen as an affirmation of the mayor’s proposal to downsize the city of Detroit and save viable neighborhoods from the claws of areas ravaged by overloaded Detroit foreclosure listings.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles