Average Home Price in Detroit Falls to $12,669
According to the Michigan Association of Realtors and Detroit Board of Realtors (data here), the average sales price of a Detroit home fell to $12,669 in February (Year-to-Date), a -42.5% decline from the $22,016 average home price during the same period last year (see chart above). 2009 year-to-date unit sales increased by 22.3% to 1,884 homes, compared to 1,540 Detroit homes sold last year over the same period. From the $97,850 peak Detroit home price in 2003, prices have fallen by an amazing 87%.
For the entire state of Michigan, the average YTD home sales price has fallen by -31% to $85,892 through February 2009, compared to last year's average price of $124,618 for the same period.
See related Marginal Revolution post here.
See updated data here, YTD price through July is only $11,596.
20 Comments:
For that kind of money, you could afford to buy a home and move it.
@ Anon, haha thats a great idea
I actually havent been to Detroit. Is it as bad as it seems? Like do you actually notice large portions of it are not populated as you walk around?
Depends where you go in the Detroit area.
There are suburbs like Bloomfield Hills where you can feel like a pauper as you gaze at street after street of multi-million dollar mansions...many of them newly built. Was there in Sept./07. Many of these folks work for the pharmaceutical industry.
As a Canadian, I have not seen any area in Canada which compares to the wealth on display in the suburbs of Chicago and Detroit. That's understandable...the U.S. is the world's largest economy with the highest per capita income. No contest.
If you have not seen this VIDEO, you should take the few minutes time and watch it.
Detroit may be our future.
Anon.,
Your link is not working.
I believe that I may have seen this clip and certainly, there is plenty of misery in Detroit and Michigan although it isn't uniform.
This comment has been removed by the author.
As a San Diego resident who has seen our median price house fall from $605K to "only" $290K, I'm planning to swap an average SD house for 22 Detroit houses -- my own subdivision!
If you are an Al Gore believer, you should do the same. One hundred years from now (according to Gore), Detroit will be a weather paradise.
Plan ahead!
There actually foreign investors buying up blocks of Detroit, as previously posted here.
There was a time article on Detroit last week. There are entire blocks, utterly vacant, maybe as much as 25% of the city.
Some areas are being converted to urban farms. The former Fisher body plant looks like a roman ruin.
And then there is Bloomfield Hills.
I wasn't kidding about moving the house. I always wondered why we have deposits on soda bottles and not on the big valuable stuff like apppliances, cars, and houses.
We build houses like they are supposed to last 200 years, when it might be smarter to build them lightly, put them together in panels with quick-connects, and make them recyclable - moveable.
Hydra
QT, thanks for sharing your experiences in Detroit. I really cant imagine!
ExtremeHobo,
Photos of Bloomfield Hills. This website writes "Bloomfield Hills is the wealthiest community in Michigan and is roughly 8 miles north of Detroit, Michigan."
Real estate listings with top priced home at 11.5 million.
Grosse Point, Michigan is another wealthy Detroit suburb on Lake St. Clair.
the median price of those suckers is well over $13k!
I think one could find some of those $12,699 nuggets in this dream neighborhood...:-)
QT said, "the U.S. is the world's largest economy with the highest per capita income. No contest."
Qatar's GDP Per Capita is about double that of the U.S. as is Luxembourg's. Norway, Singapore and Brunei also beat the U.S. on this measure according to the World Bank & IMF (neither of which rate the probable leader, Liechtenstein).
51ck-6-51x,
Yes, you are quite right. I was mistaken in my terminology. Thank you for pointing out the mistake.
Was really thinking in terms of personal income. It is my understanding that Americans are far better off than Canadians or Europeans on this measure although I may be mistaken.
Can you comment on international household income rankings?
International comparision of median household income. By this measure, the U.S. is #2. Have not been able to determine the international rankings on average household income.
The article has a major omission; it does not tell us which "average" is used, mean median, or mode. Given the source it is likely median, which is worthless as a measure of price activity, as it only shows where the middle of the market is at any point. the median house is different each month. Using the median as a measure of home price activity is one of the great media frauds that has been perpetrated on the American public.
GDP doesn't translate necessarily into population wealth, especially in small countries like Qatar. Also, you may want to check Qatar's GDP this year when it drops to its traditional levels, something like Greece's GDP per capita. Also, using median as a measure of average housing prices is completely scientific and widely accepted as the most adequate statistic in this setting.
There is a company called OCP that may be interested in buying all of Detroit...
Qatar is 89% foreign workers, that is, before the financial crisis. Naturally, citizens will hold greater work.
Norway has a lot of oil.
Luxembourg is a tax haven.
Brunei has a lot of oil.
Finally, Singapore has a population of 4.5 million, but they have built their economic success on technology and finances. Of course, freedom of speech isn't very good, birthrate is 1.2 per woman (not good for the future), and is hot and humid all year.
The point is each of these countries is small and heavily dependent on the US or a regional heavy weight. They thrive economically, but their economies are not balanced and could implode very easily, eg think Iceland.
Of course, nothing is worse than Detroit.
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