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