A new report predicts home prices in Detroit will continue to decline. But the report also finds Michigan home prices overall are stabilizing.
Real estate industry analysts at Clear Capital predict nationally, average home sale prices will remain relatively unchanged in 2012. Prices nationally have been falling since the housing market crash of a few years ago.
Detroit’s home sale prices have been declining faster than the nationally average and Clear Capital predicts another 5 percent drop this year.
“Even though in the Detroit metro we’re still looking at 5.6 percent in 2012, that is a vast improvement over last year and where the market’s been overall," said Alex Villacorta with Clear Capital.
Villacorta said with repossessed homes making up one in every two homes sold in Detroit it’s hard to get prices to stabilize.
He predicts home sale prices will also decline in Lansing this year. But he said home sale prices in Ann Arbor, Grand Rapids and Kalamazoo should remain stable in the year ahead.