Detroit home prices plummeted in first half of 2011
Detroit home prices posted sharp declines during the first 6 months of 2011, according to a new report. And the decline is expected to continue during the next 6 months. Clear Capital reports Detroit’s home sale prices were down 19.8% during the first half of the year compared to the first six months of 2010.
Detroit’s home prices have been weighed down by high unemployment and a large stock of repossessed homes on the market. While the region’s jobless numbers have improved slightly, Alex Villacorta with Clear Capital says the glut of formerly foreclosed homes is still weighing down the real estate market in Detroit.
“When we see this (percentage of repossessed homes on the market) increase…it has been increasing in Detroit for the last three quarters of a year in Detroit…we see a direct negative correlation to home prices.”
Villacorta says Detroit’s home prices are expected to dip another 4% between now and end of December.