Thursday, September 11, 2008

Detroit: Cheaper To Buy A House Than A New Car

The good news is that home sales in the city of Detroit through July are up by a whopping +44.91% (YTD) compared to last year (6,315 homes sold in 2008 YTD vs. 4,358 last year), but the bad news is that the average price for a home sold in Detroit has fallen by 55.73% to only $19,313 so far this this year, compared to an average price last year of $43,625 for the January-July period! Compared to the peak of $97,850 for the average Detroit home price in 2003, prices have fallen by 80% (see chart above, values are annual except for 2008, which is YTD, data available here).

Bottom Line: The average priced house in Detroit ($19,313) is cheaper than the average price new car ($22,650).

6 Comments:

At 9/11/2008 12:38 PM, Blogger KauaiMark said...

Recycled news?

http://mjperry.blogspot.com/2008/07/yikes-avg-detroit-home-price-falls.html

 
At 9/11/2008 12:46 PM, Blogger randian said...

I wouldn't buy even at these prices. Some of those neighborhoods are seriously scary.

 
At 9/11/2008 1:55 PM, Blogger David said...

This has to mean that habitable homes are not selling at all in Detroit. A $19,000 house is, by definition, a huge fixer upper. Does Detroit require that houses be brought up to code when they are sold?

What a sad, sad thing.

 
At 9/11/2008 3:47 PM, Blogger Monkeydarts said...

It will return to prairie eventually. Large parts are already grassland-- although the grass has a lot of weeds in it.

 
At 9/12/2008 3:28 AM, Blogger bob wright said...

This isn't recycled news.

It's updated news.

 
At 9/12/2008 2:07 PM, Anonymous Anonymous said...

Hooray I can buy a cheap house in a ghetto of Detroit!!!

 

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