Good reports are coming in from the Detroit, Michigan where home sales have spiked for the past 7 months. It’s a promising sign for an area hard hit by the sour real estate market.
According to a Farmington Hills multiple listing service, 3 out of 4 of the Detroit metro counties have reported sales increases. Oakland County is still experiencing difficulties having undergone a 1.1% decline in overall residential sales. Overall median home prices in all four counties averaged around $63,000, a 5.3% increase for the month of January.
Additional ongoing growth within Oakland County shows median home and condominium price reaching the $100,000 mark. That’s up from $95,000 only a year earlier. Non-foreclosure sales were up by 7 percent, and there was a 4.5 percent increase in the number of foreclosure sales.
Analysts at California’s RealtyTrac say foreclosures will be brisk in the Detroit Metro area this year. Improvements in foreclosure processing procedures will allow sales transactions to move quicker and therefore facilitate additional property sales.
Chief Economist for Comerica, Robert Dye, said: “We are starting to see some lift in the Detroit metro area as home sales pick up. I am cautiously optimistic for the remainder of 2012.”
Dye feels providing increased job prospects would be instrumental in helping the housing market recover. “Ongoing improvement in labor market conditions is the rising tide capable of lifting all boats… If we can avoid the downdraft of European recession and financial market chaos, and keep U.S. job growth in the range of 200,000 per month, then auto sales will continue to improve, adding support to the Metro Detroit economy.”
Optimism is rising, but tempered with caution due to lingering issues within the housing market. Half of all purchases remain “all cash” which shows a large segment of buyers are experiencing difficulty securing loans. Hopefully relaxed loan requirements and lower interest rates will turn this around.
Powered by Facebook Comments