short sale

Steve Carmody / Michigan Radio

Michigan’s home foreclosure crisis of a few years ago can still be felt by the state’s real estate industry.

In February, 2011, 35.3% of the homes sold in Michigan were distressed homes: formerly foreclosed on or being sold short for a loss.

In May of this year, 18.6% of home sales involved distressed homes.

Realty Trac reports Michigan home prices continue to improve, claiming the median sale price for a Michigan home last month was $100,000, that’s up 18% in the past year.

Steve Carmody / Michigan Radio

Michigan home sale prices have made a major recovery from the bottom of the recession.

But home prices are still far below their peak eight years ago.

Michigan’s median home price reached its peak in September, 2005 at about $150 thousand.

After the bubble burst, home prices fell dramatically, tumbling to just $51 thousand dollars.

Median home prices bottomed out in June of 2009 and have been climbing slowly since.

Realty Trac’s Daren Bloomquist says Michigan’s median home price last month was $97 thousand dollars.

calgaryrealestate.com

Building permits are up by more than a third this year in Michigan.  Home prices are also rising.

These should be great days for Michigan’s homebuilding industry, which nearly ground to a halt during the recession.

But there’s a problem: not enough workers.

A survey finds a third of Michigan homebuilding contractors are having trouble finding enough workers to do the job. 

Steve Carmody/Michigan Radio

Michigan’s home foreclosure rate is no longer among the nation’s worst.

Realty Trac reports Michigan ranked 16th in the nation in home foreclosures in March.  That is a far cry from a few years ago when the state had the nation’s highest foreclosure rate.

Mary Townley is with the Michigan State Housing Development Authority.  She credits the authority’s “Step Forward” program for providing assistance to people at risk of losing their homes…

Steve Carmody/Michigan Radio

Michigan’s home builders are optimistic about the year ahead.

The recession walloped Michigan’s home building industry. Many builders went out of business. Others merged and focused on home remodeling.

But a new survey shows Michigan’s home builders are optimistic about getting back into the business of building new homes. They say pent up consumer demand, especially for more expensive homes ($200,000 to $800,000), is pushing up the Michigan Housing Index.

Michigan Supreme Court justice charged with fraud

Jan 19, 2013
michigan.gov

Michigan Supreme Court Justice Diane Hathaway has been charged with bank fraud just a few days before quitting the state's highest court. The charge was filed Friday and titled as a criminal "information," which means a guilty plea is expected in federal court.

Steve Carmody/Michigan Radio

Michigan continues to see homes in the foreclosure process selling at a brisk rate.

About 24% of the homes sold in Michigan during the third quarter of the year (July-September) were in some stage of the foreclosure process.

Realty Trac reports that’s about 5% higher than the national average.

Georgia had the highest percentage of pre-foreclosure homes among residential sales at 38%.

(photo by Steve Carmody/Michigan Radio)

A surge in so-called ‘short sales’ is helping reduce the number of Michigan home falling into foreclosure.

It’s a trend that may eventually help Michigan’s struggling real estate industry.

Pre-foreclosure sales, also known as ‘short sales’,  are where banks agree to sell a home for less than what’s owed on its mortgage. 

(photo by Steve Carmody/Michigan Radio)

Michigan home prices are still sliding thanks to banks selling foreclosed homes and short-selling others. Realty Trac reports 40 percent of all home sales in Michigan between April and June involved banks either selling foreclosed homes or short-selling other homes that were on the verge of being repossessed. That percentage is up slightly from the beginning of the year and the same time last year. 

Daren Bloomquist is with Realty Trac. He says the banks sold the homes at about a 40 percent discount. 

“We’re seeing the prices come lower and the discounts go higher, which is good news for buyers.  And it does indicate that the lenders maybe more willing to take a bigger loss on these properties in order to get them sold.”

Bloomquist expects repossessed homes will continue to be a drag on Michigan’s housing market for the next few years.