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Michigan Hopes for Census Growth As Bank Foreclosed Properties Rise

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By : John Cutts    99 or more times read
With bank foreclosed properties continuing to rise in several areas of Michigan, state officials are looking forward to the latest census report that will show that population is growing in most of its areas, particularly in West Michigan, where growth has stuttered in the last five years of the 2000 decade.

The number of foreclosed properties, including Hamtramck foreclosure homes and distressed houses in various areas of the state, has caused the housing market of the region to deteriorate, causing the number of people leaving the state to be higher than the number who are moving in. Majority of West Michigan suburbs posted strong population growth during the first five years of the past ten-year period, but experienced the reverse during the latter half of the decade.

Officials stated that increasing Michigan home foreclosures, layoffs, high gas prices and tight credit standards have conspired to drive away majority of residents during the last five years. The foreclosure problem also cut down housing starts in majority of the West's areas. As an example, analysts cited Grand Rapids Township, where 2009 housing starts only totaled 38, down from the 200, which was the average for the township prior to the housing industry crisis.

Despite the huge supplies of bank foreclosed properties and the high unemployment rates, local housing officials reported that the areas of Ada, Cascade, Lowell, and Grand Rapids townships have shown some form of recovery during the last six months of 2010. They attributed the population growth in these communities to the presence of good schools in the region.

Cascade Township, which also experienced problems with home foreclosures, showed some improvement last year, when it had 32 housing projects, almost double the number recorded in 2009. Although the figure is still way below the home building activities in the pre-crisis period, officials are optimistic that it will improve further in the coming years. Grand Rapids Township also doubled its home building activities last year to 71 compared with figures posted in 2009.

Realtors reported that suburban areas in the state have seen increased demand for new homes last year, particularly in areas with good schools. However, difficulties in securing financing for projects and the continuous rise in bank foreclosed properties are hindering markets from mounting a sustained recovery, realtors further added.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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