More homes sold in the Detroit metro area last month compared with the same time last year, according to recently released data. This improvement is one of several signs of a slowly healing housing market for the Detroit area, which suffered significantly during the recession. Home prices are still 30 percent below pre-bubble levels, which makes it an appealing buying climate for investors who anticipate ongoing recovery in the real estate market.
Overall, 3.4 percent more homes were sold in metro Detroit this June than last June. Homes were also selling faster than last year by about nine days on average. Experts say that a lower inventory has created more favorable conditions for sellers, but low prices continue to attract first time homeowners as well as investors.
The counties that include the metro Detroit area also all saw slightly increases in home prices last month by 5.6 percent overall. If this trend continues then investors will hopefully be rewarded with a higher value asset. Experts say that many homeowners that bought before the recession are hanging on to their properties, waiting for the value to return to a level that allows them to sell without suffering from a significant loss.
“We’re getting there,” said an industry analyst. “It’s a gradual process and each month you are seeing an increase in sales price year over year. We have demand and that always drives values.”
Whether a potential buyer is looking to live in a home or invest in property in an up-and-coming neighborhood, it’s important to get sound legal advice on the purchase agreement.
Source: Detroit Free Press, “Metro Detroit home sales up in June,” Greta Guest, July 16, 2012.