Sales of Bank of America Foreclosures Decreased in Detroit- By: John Cutts
The total number of residential properties sold in Detroit, Michigan decreased in August 2010 when compared with the same month of 2009, while prices of homes increased during the same period. If foreclosed structures, including Bank of America foreclosures, are subtracted from the total, data showed an opposite trend.
When Michigan foreclosures are excluded from the statistics and only existing and newly built houses are taken into consideration, prices of residences actually dropped and total sales actually increased. Majority of local analysts believe that this is a very good sign indeed for the area's housing market.
Sale of Detroit foreclosures dropped by almost 33% for the month of August 2010 when compared with August 2009, with foreclosed dwellings sold having a total of 1,809 for August of the current year compared with August 2009's 2,697. Sale of non-foreclosed houses, on the other hand, jumped by 15.5% for the same period, with a total of 2,412 compared with 2,088 recorded in August 2009.
Total sale of homes, including foreclosures and non-foreclosed houses, reached 4,221 in August. This represents an 11.8% decrease when compared with the total number of sales in 2009 which was pegged at 4,785. Prices of sold homes also differ between the two types of residential properties.
Price of homes in Detroit, including non-foreclosed houses and foreclosed properties like Bank of America foreclosures, rose by 16.7%. Average price for August is at $70,000 which is a considerable rise when compared with the average price of $60,000 recorded in August of last year.
Regular homes, or those that are not under any distressed situation, had an average price of $111,850 in August 2010. It represents a decrease of almost 9% when compared with the average value recorded in August 2009 which was $122,750. When it comes to foreclosed residences, the average price for the current period is $36,650 which represents a 12.8% rise when compared with August 2009 when the average price of a distressed home was $32,500.
According to RealComp II Ltd., the firm from Farmington Hills that provided the August data, the continuous decrease in the sale of foreclosed houses, including Bank of America foreclosures, is a good sign for the Detroit housing market, particularly when sales of regular homes or non-foreclosed dwellings are increasing at the same time.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.