Detroit is one of only three metro areas to show a rise in home prices, according to the Case-Shiller index released recently. The report shows that in January of 2012, home prices were up by 1.7% over the previous year. Experts say that it is difficult to draw conclusions from this set of data because of the large percentage of short-sales that are occurring in the metro area. Although for the last seven months prices have increased in Detroit, overall they are still below prices from the 2000.
Average home prices around the country are generally back to or closer to pre-bubble levels, although there is some fluctuation. Analysts say that one reason why the real estate market is stagnant in some areas is because of the high level of supply of available homes. Some economists are still expressing doubt about the recovery, saying that factors such as inflation mean that the prices are not as good as they appear to be.
While home prices may indicate one thing, it’s also important to work with experienced professional who can interpret the data and help buyers and sellers make informed decisions. For people or businesses interested in investing in property, the large supply of available property is an advantage to finding the best spot at a good price. However, buying from a foreclosed or bank-owned property may present some complications, so it’s important to be thorough when considering a specific property. Attorneys with experience in real estate law can help assess any potential issues with the title or conflicts that may arise during the transaction process.
Source: Detroit Free Press, “Metro Detroit home prices rose 1.7% in January compared with a year ago,” Greta Guest, March 28, 2012.