Wednesday, August 19, 2009

Average Home Price in Detroit Falls to $11,596 Monthly House Payment Would Be $51.23

According to the Michigan Association of Realtors and Detroit Board of Realtors (data here), the average sales price of a Detroit home fell to $11,596 in July (Year-to-Date), a -40% decline from the $19,596 average home price during the same period last year (see chart above). 2009 year-to-date unit sales increased by 17% to 7,373 homes, compared to 6,315 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 88%. With a 20% down payment on a $11,596 average priced home in Detroit, the monthly payments on a 30-year fixed-rate mortgage at 5.25% would be only $51.23.

For the entire state of Michigan, the average YTD home sales price has fallen by -23.65% to $93,648 through July 2009, compared to last year's average price of $122,660 for the same period. The number of homes sold in the state through July (63,176) of this year increased by 9.16% compared to last year (57,877).

10 Comments:

At 8/19/2009 11:52 PM, Anonymous Ian Random said...

This shows that progressive policies can succeed in making affordable housing. This could almost be considered a public-private partnership without those pesky millions that usual exchange hands. By discouraging evil business, the supply of houses for sale increases. The poor can now own a piece of the American dream.

 
At 8/20/2009 7:02 AM, Anonymous Anonymous said...

So the $13 extra a week I'm getting from lower withholding will pay for a mortgage!

- Live in Detroit
- Crime
- Poverty
- Unemployment
- Liberals
- Pay to bring house up to code
- North of Canada
- Live in Detroit

Uh, no thanks. I'll pass.

 
At 8/20/2009 7:46 AM, Blogger Kevin Leversee at gmail.com said...

If Homes are that cheap in Detroit- WHAT A GREAT INCENTIVE to do technology start-ups. Any good Web or Software Developers in Detroit? I spent some of my childhood in Michigan- its reasonably cold though I hate cold weather. But we could look at news like this with interest and extreme vigor! I like the idea of returning to the states and doing start-ups where others see only waste.

 
At 8/20/2009 10:32 AM, Blogger Christopher said...

This comment has been removed by the author.

 
At 8/20/2009 10:33 AM, Blogger Christopher said...

Yeah, watch out for those crazy liberals, with their belligerent acceptance of others and sense of community. What a horrible blight.
Also.....north...of canada?

Better keep your head down, some real sharp with being dished out in this comment section.

Anyways, in response to Kevin, that really is an excellent idea. If everyone saw things that way, there would be no "economic crisis" in this country, just opportunities happening. I would be ready to jump on the bandwagon if I weren't already working wit a tech start-up in my hometown.

House prices like this just boggle the mind. Where I live, this sort of thing is almost much to believe.

 
At 8/20/2009 12:20 PM, Blogger happyjuggler0 said...

Here is a crime comparison between Detroit and NYC.

If I were going to do a start-up somewhere cheap and I didn't mind the cold or lack of ability to get top notch employee prospects to move there, I'd pick South Dakota. It's a hell of a lot safer, and it is massively tax advantaged compared to almost all of the US, but especially compared to Detroit.

P.S. Detroit is indeed north of part of Canada (check out a globe or a good map), hence Anonymous @8/20/2009 7:02 AM is correct.

 
At 8/20/2009 4:17 PM, Blogger 1 said...

"Yeah, watch out for those crazy liberals, with their belligerent acceptance of others and sense of community. What a horrible blight."...

Hmmm, on what planet are these phenomenal liberals living on Christopher?

Can we assume that the stalwart liberal Barney Frank likes to flutter around Uranus?

Maybe its that liberal Obama administration and their care & feeding of jihadis is the example of an out of this world decision other liberals can be proud of, right?

 
At 8/20/2009 9:02 PM, Blogger OBloodyHell said...

> Monthly House Payment Would Be $51.23

True, but:

1) You'd have to live in Detroit

2) You'd have to find a job in Detroit that pays at least $150 a month.

One is pretty undesirable, the other pretty unavailable.

I heard about a lean-to shack in central Wyoming that you can live in for $10 a month.

Any takers?

 
At 8/20/2009 9:11 PM, Blogger OBloodyHell said...

> Yeah, watch out for those crazy liberals, with their belligerent acceptance of others and sense of community.

Oh, yeeah, sure.

If your idea of "community" is
"community" == "think as i do, act as i do, speak as i do... or get run out of town"

It ain't the libertarians who rise to the top of "community zoning boards" and "neighborhood use committees". It's generally liberals.

====

"Professional liberals are too arrogant to compromise. In my experience, they were also very unpleasant people on a personal level. Behind their slogans about saving the world and sharing the wealth with the common man lurked a nasty hunger for power. They'd double-cross their own mothers to get it or keep it."
- Harry S Truman, pp. 55, American Heritage 7/8 1992, from a 1970 interview --

 
At 9/05/2009 7:20 PM, Anonymous Anonymous said...

At sub $12,000, even with the mediocre £ to $ exchange rate, I could sell my apartment here in the U.K. and buy 10 'average' properties outright. Added to that I could afford another 6 at ~$50 a month at a 1/3rd salary mortgage.

And I'm a 23 year old PhD student.

Read in to that what you will.

 

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