Average Price of a House in Detroit? Only $20,514!!
The good news is that Detroit home sales through April are up by a whopping +48% (YTD) compared to last year (3,360 homes sold in 2008 YTD vs. 2,267 last year), but the bad news is that the average price for a home sold in Detroit has fallen by almost 56% to only $20,514 so far this this year, compared to an average price last of $46,183 for the January-April period! Compared to the peak of $97,850 for the average Detroit home price in 2003, prices have fallen by 79% (see chart above, values are annual except for 2008, which is YTD, data available here).(Hat Tip: James Hohman)
4 Comments:
The problem with trying to figure out a market using "average prices" is that the "average price" is gleaned only from properties sold.
It ignores other factors such as the number of home owners that would not sell their houses at current apparent market values and will wait for what they think to be better times to sell when the market is more active.
Detroit is a special case that demands extraordinarily thorough analysis prior to making an investment decision. Given the demographics of the area, the widespread and well documented public corruption of local governments, lack of any prospect for economic growth in the near term, high crime rates, low education of the workforce, city income tax, the prevalence of much safer and more attractive neighborhoods near enough to the city for those who want to live in the area Detroit is dead.
Great graph. I threw you a link on this one.
"Given the demographics of the area, the widespread and well documented public corruption of local governments, lack of any prospect for economic growth in the near term, high crime rates, low education of the workforce, city income tax"...
Hmmm, good points anon, it pretty much reflects what this guy is saying but your explanation is quite a bit more polite...
> Average Price of a House in Detroit? Only $20,514!!
The sad thing is, that's still too friggin' high.
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