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Five Reasons for Investing in Foreclosures in Michigan



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By : John Cutts    99 or more times read
There are at least six recent reasons for investing in foreclosures in Michigan in the first half of this year.

These are the surge in home sales in Southeast Michigan, the drop in home prices, the month-over-month decline in foreclosure filings, the increase in the Point2 real estate confidence index for Michigan and the stability of the Comerica index for Michigan business activity.

All these are factors that favor investing in bank owned property lists as they provide a better environment for buying and reselling foreclosures.

In March, total home sales in Southeast Michigan climbed up, with most areas posting increases in sales of non-foreclosures and drops in sales of foreclosures.

In the counties of Macomb, Wayne and Oakland, a total of 2,201 non-foreclosure homes were sold in March, marking substantial rates of increases in each of the counties. On the other hand, sales of foreclosure homes dropped to a total of 2,305 units.

In Macomb County, the median sales price for non-foreclosures dropped to $99,000 while the median for all types of homes rose by 25 percent to $75,000. The still affordable prices of homes and increases in median prices mean that investors can resell their properties at greater profits.

Meanwhile, the drop in foreclosures in Michigan in March by 11.6 percent from February to a total of 17,700 filings can mean that the housing market in the state is recovering, allowing the market to handle higher prices set by investors.

Of the total March filings, nearly 12,000 units were pre foreclosures, providing another venue of opportunity for investors. Short sales can now be carried out more quickly than before the Home Foreclosure Alternatives program was launched.

The decline in filings in Michigan pushed down the ranking of the state in charts of foreclosed homes by state from fifth in February to seventh in March. This is another sign that the Michigan market is improving.

Two indexes have also affirmed the improving economic performance of Michigan in the first months of this year. The Point2 index reflected the 50-percent increase in home sales in the first quarter in Southwest Michigan and the stability of prices.

The Comerica Bank Business Activity Index for Michigan also rose by 17 percent in March from the index level one year ago, reflecting recovery efforts in the manufacturing sector.

With these factors favoring real estate investments, investing in foreclosures in Michigan is a workable and profitable endeavor.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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