Economy
1:01 am
Thu November 3, 2011

Michigan home sale prices are rising

Michigan home sale prices increased by more than 6 percent in the last three months. But home prices are not rising everywhere.  

Alex Villacorta is with Clear Capital. He said Michigan’s average home sale prices are still 65 percent below their peak of a few years ago, before the recession.  But Villacorta said prices are finally moving in the right direction. 

“Over a broader horizon of two years…prices are actually up five point three percent…so even though it’s been kind of a roller coaster ride certainly over the last few years…the net trend overall is prices are still on the rise," said Villacorta.  

But home prices are not rising everywhere in Michigan. While home prices are up in Ann Arbor and Grand Rapids this year, prices are down in Lansing and Kalamazoo. 

Another potential problem, there’s been an increase in mortgage lenders foreclosing on delinquent Michigan homeowners. Banks often sell repossessed homes at below market rates, forcing overall prices lower.