Categorized | Residential

Home Prices in Detroit Continue to Fall

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The residential real estate market in Detroit continues to maintain its position as the very worst in the United States. The city, which has been absolutely decimated due to minimal employment opportunities, saw home prices drop nearly seven percent in the past year as demand remains weak, and supply continues to rise.

Only Las Vegas has seen struggles similar to Detroit, as real estate prices in both cities have dropped to levels that haven’t been seen since the twentieth century. Unfortunately for Detroit, prices are expected to fall further as the winter months approach.

Detroit wasn’t the only city to have its real estate market take a beating. Phoenix, Portland, and Minneapolis all saw significant drops in home prices. The twenty largest cities in the United States on average experienced a price drop of nearly five percent. Prices are expected to drop further as foreclosures continue to hit the market, and demand continues to dwindle. Threats of a double-dip recession may further weaken expectations for a housing market recovery.

Although the majority of cities did see price decreases, there have been a few exceptions where the residential real estate market is experiencing some moderate growth. Cities like Washington DC, San Francisco, and Miami have all seen housing prices increase. These areas are continuing to see improvement for a variety of reasons, and with mortgage rates at extremely low levels, their numbers should only improve.

The mixed trends have made it difficult for analysts to give an accurate prediction as to the recovery of the housing market on a national level. However, many believe that the market will continue to weaken for quite some time, largely due in part to cities like Detroit.

 

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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