Detroit’s rate of short sales has increased 171 percent in the past year, thanks to Michigan lenders working with homeowners to attempt to stem or even stall the tide of foreclosures hitting the already-depressed Michigan market[1]. In southeastern Michigan, this could indicate that the real estate market is “on the move,” reported the Detroit News, but it remains unclear how positive a sign this really is.
While most communities are concerned when a large volume of short sales takes place because these transactions knock down home values in the entire area, in Detroit, they’ll definitely take short sales over foreclosures. The depressed values may even be attracting some buyers, according to the News. However, the market, while showing some stirrings, may not be able to take the “shadow inventory” that lenders are holding right now.
Would you buy or invest in Detroit? Are you?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://www.upi.com/Business_News/2010/06/05/Detroit-sees-surge-in-home-short-sales/UPI-68841275770899/
A rebounding housing market requires jobs, there are no new jobs being created in Detroit that I am aware of and there is no real plan to create new jobs. If families are not willing to move in there and create thriving communities, the market will be stagnant at best and therin may also be bad news that is good. A stagnant market is still better than a detiorating market.
Great story!!! I Don’t really know if it’s a good sign for Main street Investors but it looks like a great place for Beginning investors to try out their skills without risking a lot. I’m about to look in that area for deals also. Because A DEALS A DEAL. No matter who’s selling it! Have a Great Day!!!
I wouldn’t buy in Detroit until employment improves. I’ve heard that there’s decent cash flow in some areas, but then I hear that the turn-over is high, which kills the cash flow. Prices are cheap, but they’re cheap in other markets too – markets that have a stronger job outlook.
Where else can you buy a 3bdrm brick ranch with fireplace for $4,000 including a garage. That`s less than i paid for my used car that needs work!! Unfortunately, the taxes match the purchase price. That is until i challenge them.
Help, I have 4 properties I need to get rid of in Detroit,
There is no way I would buy in Detroit. Who would I sell it to? Detroit is a disaster. Along these lines, type in “abandoned buildings in Detroit” into your search engine and you will find a website where two guys went into abandoned buildings in downtown Detroit and took some video in each building. This is scary stuff. It looks like some kind of a science fiction movie where all the people have disappeared. It is just unbelievable!