Metro Detroit home sales up, median price down

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Metro Detroit home sales up, median price down

By GRETA GUEST • FREE PRESS BUSINESS WRITER • July 20, 2009

Metro Detroit home sales rose 22.6% in June to 6,549, according to Realcomp data released today.

And the number of foreclosed homes sold last month doubled to 3,593 of total sales compared to 1,795 in June 2008, the Farmington Hills-based multiple listing service said.

The number of homes on the market fell 27% in June to 49,503 compared to 67,888 in June 2008.

The median price of homes sold in June fell 45.6% to $56,000 from $103,000 a year ago.

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http://freep.com/article/20090720/BU...ian-price-down

Weird bubble over the last 15-20 years.

I bought a house on the far west side for $44,000 around 1990 or so, sold it about 7 or 8 years later for $75,000. In my opinion it was just barely worth the 40K figure and no where near worth 75K, but that's what the market brought. Nothing special about it. Typical 1 1/2 story brick bungalow on a larger lot. I was very surprised. I doubt it would sell for that now.

Houses are devalued 46% from a year ago and only selling 22% better? It's amazing how people manipulate numbers.

If people are unemployed, they can't even buy a house even at those prices.

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Originally Posted by Sstashmoo

Houses are devalued 46% from a year ago and only selling 22% better? It's amazing how people manipulate numbers.

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Heard this news from my favorite Realtor during my evening jog yesterday...he says the effects, though, are driving down rental prices. I'm happy with that.

It was a WAY un-natural bubble...every honest person knew that. The greedy ones chased it, and the lucky ones benefited from it.

Cheers, Meddle, for profiting off of other's ignorance. Good chance that house will foreclose if it is that backwards. I'm SURE that is driving many folks decisions to let 'em go back to unreasonable banks...who all should've known the bubble was fake, too!

I know people who clearly qualify, but they cannot get a loan! THAT is keeping these houses unfilled. It is ALL on the banks, save maybe a wee bit of blame for the government!

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Originally Posted by Gannon

I know people who clearly qualify, but they cannot get a loan! THAT is keeping these houses unfilled. It is ALL on the banks, save maybe a wee bit of blame for the government!

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Save only a "wee bit" for the government? Who inflated the bubble in the first place, making credit so cheap and easy? The banks didn't do that. Only one group controls the supply of money and credit, and it was created by an act of Congress: the Federal Reserve.

Comparing median sales prices can be misleading--you don't know whether there is a change in the sales mix from period to period.

Home sales being up is good--it means that at least there is a market at some price. However it is hard to imagine prices rising much unless there is a lot of inflation or the area's job and population loss stops. And of course there is a pretty big backlog of distress sales to keep a lid on things for a while too.

There probably isn't much difference in the sales mix. Lots of foreclosures bring down prices.
Rentals should get cheaper. If someone buys a house for $25k that cost $80k a year or two ago they can rent it out for less, and have to, to be competitive. PMI who monitors houses nationwide [[ they have to - they insure them) said last week that Las Vegas, South Florida, Cal and Detroit have a 99% chance of price declines into 2011. Most other cities did not do too well.