Detroit posted the biggest percentage drop in home prices in the nation, according to a new report. Clear Capitol says home prices in Michigan’s largest home market slide 13% in February, more than any other major city.
Alex Villacorta is Clear Capitol’s director of research. He says home prices in Detroit are being dragged down by banks trying to sell foreclosed homes. Bank owned homes usually sell at well below market prices.
“In Detroit in particular we are seeing about 47% of sales are bank owned sales. And with that high proportion of…saturation it’s just too much downward pressure in home prices to see much of a recovery.”
Villacorta says the percentage of bank owned homes on the market will have to drop to about a third of the market before Detroit’s home sale prices could improve.