Tuesday, October 25, 2011

Metro Detroit home prices rise 2.7% in August, among hottest in country

http://www.freep.com/article/20111025/BUSINESS04/111025028/Metro-Detroit-home-prices-rise-2-7-August-among-hottest-country

Interesting article about the rise in housing prices in metro Detroit. "For the second month in a row, metro Detroit and Washington, D.C., ranked as the only two major metropolitan areas to see price appreciation in the past year..." In general, mid western cities including Detroit, Chicago and Minneapolis have seen monthly increases in housing since May.

This is a positive note for the city of Detroit as well as the state of Michigan and the Mid west. But the article mentioned that housing prices in Detroit are still only at 1995 levels so there is still much improving that is necessary.

4 comments:

  1. Does this mean that there are more people moving to Detroit than before? The simple law of demand and supply should prove that people are willing to purchase houses in Detroit at this price regardless of the current crisis. This goes against our philosophy of "people don't want to live in cities anymore". While Kalamazoo is reducing house prices like crazy to attract more people, they have the room to increase the housing price? Interesting...

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  2. Metro Detroit, not Detroit city. Big difference unfortunately.

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  3. I found an article entitled, "Have Detroit Home Prices Turned the Tide," which seems to expand from the article above. The article explains how a decrease in homes for sale and fewer foreclosures, along with an increase in local hiring and a rise in the corporate relocation business, have helped contribute to the increased housing prices. However, before Detroit can be considered "on the way back," prices need to continue to consistently appreciate. Like Dr. McKinney said in class, "There is no short-term solution." The Detroit area has been hurting for a long time, but hopefully data keeps revealing progress and supplying evidence of a gradual recovery.

    http://www.freep.com/article/20111026/BUSINESS04/110260368/Have-Detroit-home-prices-turned-tide-?odyssey=mod_sectionstories

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  4. I think thats a good sign value is coming back to housing I hope the trend spreads to bigger cities so that people can manage their mortgages

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