Home sellers in Michigan saw prices drop significantly in the last three months. And one analyst predicts it’s a trend that shows few signs of easing.
Clear Capitol reports Michigan home sale prices between October to January dropped by 5.3 percent compared to a year ago. And the overall trend is even worse.
Alex Villacorta is the director of Research and Analytics at Clear Capitol. He says home sale prices in Detroit were down nearly 12 percent. Villacorta blames the fact that half the homes sold in the Detroit during the last three months had been foreclosed. He says banks sold the repossessed home at discounted prices.
“With more than one in two homes selling as a distressed sale, it really puts significant downward pressure on home prices," says Villacorta.
Villacorta advises people not to put their homes on the real estate market right now if they don’t have to. But if you're in the market to buy a home, Villacorta has different advice.
“For a buyer, (this is) certainty a fantastic time to buy," says Villacorta, "(With) prices at levels not seen in decades…..with mortgage rates at record low levels it’s a great time to get in.” Villacorta says other markets around the country hit hard by the foreclosure crisis are showing signs of recovery. But not Detroit.