Sales of foreclosed homes slowed in 2010 in Michigan

Fewer homebuyers were interested in buying a previously foreclosed home in Michigan last year. The result is an increasingly high number of bank-owned homes just sitting on the real estate market.  

Just under 41 thousand formerly foreclosed homes sold last year in Michigan.  That’s down by a third compared to 2009 and 2008.  The prices paid for those homes also dropped.

Daren Bloomquist is with Realty Trac.  He says the end of federal first-time home buyer tax credits midway through 20-10 played a role in the decline. 

“You know, I think that’s following the trend of the overall market where we’re not seeing a lot of demand from buyers to purchase properties in general, and that includes foreclosures.”  

Bloomquist says Michigan’s real estate market now has more than 79 thousand bank-owned homes clogging the housing market.    And he says banks are repossessing homes faster than they can sell them