Categorized | Residential

Detroit Real Estate Market Showing Improvement

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Detroit’s real estate market has greatly struggled over the past five years, and has long been one of the weakest in the United States. However, data from a recent report indicates that residential real estate prices in Detroit are finally starting to show signs of stabilization.

While prices are still quite low, there has been some trending growth. Prices are up a few percentage points when compared to their record low levels in 2009. Analysts have been very cautious to jump on Detroit’s recovery bandwagon, as the city’s residential real estate prices are still seventy-five percent lower than what they were during the market’s peak roughly seven years ago.

The hope, however, is that the housing market in Detroit will continue to show improvement over the next two years. Although the sales and pricing figures are down from last year, they have recently began to show consistent improvement. The current trends point to great opportunities for success within the housing market.

Detroit isn’t the only housing market that has seen immense struggles since the residential real estate crash that crippled the nation. The Southwest in particular has experienced significant drops in pricing as well.

One of the reasons why Detroit, and some cities in the Southwest, has experienced such severe declines in pricing is that there is an abundance of distressed properties in each city and region. The high percentage of distressed properties has caused massive drops in pricing of houses, as even non-distressed buyers utilize their sales figures as a comparison for traditional housing transactions.

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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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