In Many Markets, Home Prices Near 2006 Peak!
Over the last year, home prices nationwide have steadily increased. In fact, four states reported home prices that matched their peak, and twenty-two other states reported home prices within10 percent of their peak prices.
The Metro Detroit market has improved over the last year as well! However, many homeowners in our community don’t realize just how much prices have improved. News and other Media outlets are often 1-2 years behind in local market trends. Now may be the time to sell! Some Investors who purchased homes between 2009-2011 for under $20,000 in Detroit have seen great returns. Some of our investors were able to rent these homes for $700-$800 per month and are now selling these homes for $40,000-$50,000.
Comments (2)
Andrew Syrios, over 9 years ago
Andrew. I think our local market in the Metro Detroit area hit its low 4-5 years ago. I don't see our values dropping as long as the banks do not flood our market with inventory again. Over 90% of our sales under $100,000 have been cash sales so the interest rates will not matter much in that market. I think the $175,000 and up market values will drop slightly if rates increase. I think the biggest factor in the market now is inventory. The Hedge Fund deals may be a fad because it is being used as a short term solution for the banks to clear inventory. Most of my REO listings are going to auction and some are even being sold via quit claim deed while the home is still in redemption. The average consumer is still waiting on the homes to hit the MLS. So although the banks are selling plenty of inventory the buyers are only seeing the tip of the iceberg of inventory on the MLS. These buyers are out bidding each other which is raising demand and affecting market values.
Reginald Perryman, over 9 years ago