Metro Detroit Home Prices Fall 25% Compared To Year Ago
Foreclosures/Short Sales, Metro Detroit Market, Market Statistics
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The average median price that a home sold for in the Metropolitan Detroit real estate market has fallen 25% compared to last year July of 2007. This was due in a big part to the sale prices of the foreclosures.
Lets look at Oakland County for example, the median sales price for foreclosure homes that sold was $75,000. The median sales price for privately owned homes for the month was much higher at $184,625. Thats almost 2 1/2 times the median sales price of the foreclosure homes. Sure sales prices are declining month after month. The positive news that I see is, once the foreclosures dry up, home prices will obviously stabilize. I still think we are a couple years out from the market getting to a point where foreclosures in Michigan will start to become a rare commodity.
When I am out on a listing appointment sellers always ask "Mark, how do you plan on finding a buyer for our home with all the foreclosures to compete with?" Thats a great question. First of all, a foreclosure requires a lot of cash out of pocket after the closing to clean up the home, update the home, and a lot of times get rid of mold issues. A lot of the buyers we work with in todays market don't have the cash to spend thousands and thousands of dollars fixing up a home after closing. So a well taken care of home has a place in todays market. It's up to your real estate agent on whether they are going to be pro-active enough to find those buyers. With over 70 homes SOLD this year, I have a proven track record to find those buyers.
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