Categorized | Residential

Detroit Housing Market Finally Seeing Growth

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From the very onset of the real estate crash that started in 2007, Detroit has been the essentially been the poster child for a residential property market in shambles. The city has been recognized as having one of the worst real estate markets, particularly due to the lackluster job market in the city.

However, the negative image of Detroit’s residential housing market may finally been changing, as the city is finally starting to show increases in both sales and prices. Overall prices are up more than one percent from a year ago. The increase may indicate that the housing market in Detroit has finally bottomed out, and prices are beginning to stabilize.

One of the factors contributing to the turnaround in Detroit is the newfound success of the auto industry. Ironically, it was the auto industry’s bankruptcy issues that truly decimated the city in 2009. However, the bankruptcy issues forced the industry to rethink their business plan, and the auto industry has thus far been successful once again. As such, the housing market is reaping the benefits. In addition to the improved job market in the city, record-low mortgage loan interest rates are also contributing to the growth.

Many of the recent homebuyers in Detroit are young, as they are able to take advantage of the low rates and prices in the city. The current improvements have significantly changed the outlook on Detroit’s residential properties. It was only two years ago that homeowners couldn’t even give away their Detroit homes. In the current market, bidding wars are actually driving prices to sell for nearly fifty thousand dollars more than the original asking price.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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