Improvements in the prices of both foreclosed and non-foreclosed homes are expected to drive Detroit foreclosure investing, based on sales and price reports from real estate firm Realcomp II Limited.
Price improvements show investors that recovery is nearing, pushing them to buy some more properties before prices finally shoot up to high levels.
In February this year, the median sales price for homes in Detroit foreclosure listings was $6,153, a jump of 12 percent from the February 2009 median of $5,500. The sales price median, meanwhile, for non-foreclosed homes was $15,500, a sharp 64-percent spike from $9,450 in February 2009.
In the Detroit metropolitan area, which covers 9 counties, the median sales price for all types of homes in February was $55,500, a 29-percent jump from $43,000 in February 2009. The median sales price for foreclosed houses was $32,562, a jump of 21 percent from $27,000. In contrast, the price median for non-foreclosed houses dropped to $96,000, down by 4 percent from $99,875.
Among the 9 counties, the most expensive housing market in February was Livingston County, despite double-digit drops in home prices. The price median for foreclosed homes was $97,000, a 16-percent decrease from $115,000. Similarly, the median for non-foreclosed houses declined, falling by 17 percent from $180,000 in February last year to $149,625.
The rise in the price median for both foreclosures and non-foreclosures in the city of Detroit is a positive sign for people engaged in Detroit foreclosure investing. This means that despite the continued rise in pre-foreclosures in Detroit, the crisis is now easing, as home sales start to climb up. Besides, the increase in foreclosure filings is no longer as sharp as last year.
In Wayne County, where Detroit is the administrative center, the price median for all types of homes was $15,157, a year-over-year jump of 26.3 percent. In contrast, the median sales price for non-foreclosed houses fell to $74,000, down from the February 2009 median of $85,500.
In Macomb County, the median sales prices for all kinds of homes and for non-foreclosed homes declined. The median for all home sales dropped to $40,000 while the median for non-foreclosed homes decreased to $99,950.
Total sales for non-foreclosure homes in Wayne County rose in February from 394 units to 590 units in February while total sales for foreclosed houses fell from 1,359 units in February 2009 to 1,057 this year.
All in all, the upward trend of foreclosed home prices in the metro area bodes well for Detroit foreclosure investing.
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