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Distressed Property Auction Sales Attract Buyers in Michigan

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By : John Cutts    99 or more times read
Several areas of Michigan are still mired in foreclosure troubles, but analysts are optimistic that the low prices of properties being sold at distressed property auction will help the state's housing market recover. According to them, a lot of buyers have come into the region to take advantage of the discounted properties.

The number of Grand Rapids distressed homes as well as foreclosed properties in other key areas like Detroit remained high last year. Both the commercial and residential markets of big cities like Detroit are lacking development activities, but opportunities have emerged in terms of housing and other real estate sales, according to industry experts.

Because of the huge supplies of Michigan distressed properties, experts estimated that the values of real estate in the state have declined by more than 30% during the decade. Even in neighborhoods considered to have strong housing markets, prices of homes have dropped to as low as $150,000 last year from $400,000 three or four years ago. Although this decline in prices is bad for the overall real estate market, housing analysts have stated that this could be good in terms of housing unit sales.

In Denver, for example, housing analysts reported that distressed property auction sales have attracted a huge number of investors. Realtors have reported that 2010 saw a considerable increase in investor interest among properties in the metro area, particularly in the neighborhood of Palmer Woods.

Analysts have stated, however, that if there is a barrier to getting distressed properties in foreclosure sold in Denver, it is the high cost of living and lack of necessary services. They stated that costly insurance rates and few number of grocery stores and good schools are preventing middle class families from moving to Denver and deciding to stay on. Experts have added that the city is also being hurt by news of bankruptcies among its big name auto companies like General Motors and Chrysler.

Despite these negative perceptions, experts are pushing for further efforts in selling properties at distressed property auction sales. They stated that gaining the attention of investors with low-priced dwellings will help restart real estate development activities in the metro region.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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