The prices home buyers are paying for repossessed homes are rising in Michigan. One analyst says it might be a sign that the real estate market may finally have hit bottom.
Formerly foreclosed homes have saturated the market in Michigan since the recession hit a few years ago. The high percentage of foreclosed homes on the market has been blamed for real estate prices crashing to levels not seen in Michigan since the 1990’s.
But Realty Trac is reporting that the average price paid for a foreclosed home in Michigan rose during the third quarter of last year. Daren Bloomquist is with Realty Trac. He says that may be a sign that Michigan’s real estate market has hit bottom and is ready to stabilize. Though Bloomquist warns an expected flood of new home foreclosures this year may affect prices too.
“ (Prices will) Probably flatten out for the first half of the year," says Bloomquist, "As the market absorbs that additional delayed inventory of foreclosures.”
Bloomquist says Detroit saw a 10% increase in what people were paying for foreclosed homes during the third quarter last year. Nationally…prices only increased about one percent.
