Tag Archive | "Detroit"

Detroit Real Estate Market on the Rise

For the first time in years, Detroit’s residential real estate market found itself on the list of improving housing markets. Other Michigan cities including Ann Arbor, Lansing, and Grand Rapids also made the list.

The list of improving markets was based largely on such factors as single-family housing permit growth, the appreciation of housing prices, and growth in employment numbers. In order to qualify for the list, the city must have shown improvement in the three qualification areas for at least six months.

After years of hardship following the difficulties faced in the auto industry, the improvement is a great sign for Detroit. It is now one of ninety-eight cities on the improving list. With almost one hundred cities on the list, things are starting to look up around the country.

Detroit has seen an increase of nearly nine percent since April of 2009 in the number of permits for single-family housing. Their employment numbers have inched their way up since June of 2009, increasing by two and a half percent. Housing prices have been steadily rising since March of 2011, increasing by nearly seven percent.

Detroit is not entirely back to their optimal state quite yet. They still have roughly seventy-five percent of the way to go before they reach a position similar to that which they experienced during their booming years. With that said, however, things are certainly looking brighter than they have in the last five years.

Detroit wasn’t the only major city to make the list for the first time. Other major cities that showed up for the first time include Boston, Miami, Memphis, and Salt Lake City.

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Detroit Real Estate Expected to Grow with Regeneration Efforts

With the announcement that the United States federal government intends to finance the regeneration of Detroit, analysts believe that the property market in the city will begin to see fairly strong growth.

After holding the title of being of the worst housing markets in the United States for years following the real estate crash, it looks as though the residential real estate market is finally on the upswing. The housing market began to show improvement during the last half of 2011, as investors began to take notice of the potential financial opportunities that come with home ownership in the city.

Residential real estate prices are currently seventy percent below their typical level, making the market an absolute bargain for investors and families looking to buy a new home. In addition, property ownership in the city currently carries a phenomenal seventeen percent net yield.

With regeneration efforts now planned for the city, home prices and sales are expected to continue to experience strong improvement. Groups are identifying foreclosed and uninhabitable properties, and rather them leaving them in a state of disarray, they are refurbishing them to make them not only affordable, but quite attractive as well.

Prices are predicted to grow at least five percent each year for the next five years, making the property market a profitable investment for those looking to buy a home. Currently, a standard three-bedroom house can be purchased for as long as thirty-two thousand dollars in Detroit. Those kind of prices, though, will only last for a limited amount of time, as the government’s regeneration efforts will be instrumental in guaranteeing the five percent increase in sales and price expected to take place over the next five years.

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Detroit Real Estate Market Showing Improvement

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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Detroit Housing Market Finally Seeing Growth

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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Home Prices in Detroit Continue to Fall

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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