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Home Prices Still Influenced by Detroit Bank Owned Homes

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By : John Cutts    99 or more times read
The prices of nondistressed homes are still being pulled down by lower-priced Detroit bank owned homes. Although sales of non-foreclosures improved substantially in April, their prices were still dragged down by distressed homes.

In April, total sales of non-foreclosed homes in the counties of Wayne, Macomb and Oakland increased, based on data from a market research firm.

In Oakland County, 976 nondistressed homes were sold, almost double the 498 homes sold in March. The price median dropped however from $148,500 to $140,000 over the year. Sales from foreclosure lists meanwhile declined from 837 units in April last year to 573 units.

In Macomb, 495 non-foreclosed homes were sold, up from 291 in April last year. The median price fell from $118,000 to $95,000. Sales of foreclosed homes dropped from 506 units to 336 units over the year.

Wayne County also posted a jump in sales of non-foreclosures, from 547 units to 895 units over the year. The median dropped from $83,000 to $75,000 in April 2010. Sales of foreclosed units dropped from 1,909 to 1,147 units.

Similarly, the number of Detroit bank owned homes sold dropped from 976 to 512 units in April this year. But it was only in Detroit where both sales and prices of non-foreclosures rose in April.

In Ann Arbor, a total of 297 homes were sold in April, and this figure included all types of homes including units from VA foreclosure listings as the Ann Arbor Board of Realtors provides mixed data.

Statewide, home prices are also still influenced by foreclosures, as the number of bank owned homes in Michigan continued to rise. In April, repossessed homes in the state increased from 5,715 units in March to 6,252 units, a jump of 9.4 percent. Total foreclosure postings also increased from 17,700 in March to 19,173 in April.

Based on foreclosure percentage, Michigan remained 7th on charts of house foreclosures by state in April, and the still high number of Detroit bank owned homes contributed significantly to the state ranking.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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