Increase in Sales of Detroit Foreclosed Homes for Auction
Sales of foreclosed homes for auction in the Detroit region increased in June by nearly 144 percent compared to sales in June last year, according to an analysis of real estate sales in the counties of Livingston, Genesee, Lapeer, Wayne, Oakland and Macomb and in the cities of Detroit and Saint Clair.
The substantial rise in sales of foreclosed homes for auction pushed down average prices to $140,000, down by $32,000 from the average price in June 2008.
Housing analysts in region said that foreclosed homes for auction have been driving the housing market and setting home price levels. The Detroit housing market is still a buyerâ??s market, according to them.
Sales of all types of homes in Livingston increased by nearly 48 percent compared to sales in June 2008 and total June sales in Detroit was the highest level of monthly sales since 2004.
According to some analysts, people who were previously hesitant to buy finally made their home purchase decision in June as layoffs in the auto manufacturing sector has slowed down. They believed that the major car makers have already implemented all their big layoff plans.
The other factors for the increased sales in foreclosed homes for auction in the region are the same factors that are pushing home sales in other areas of the country, which are low home prices, lower mortgage rates, tax incentives and state financial aid programs.
In another analysis of real estate sales data in Livingston County, it was reported that all types of home sales increased by more than 48 percent in June this year from total sales in June last year. The increase in sales of foreclosed homes for auction was significantly higher. Foreclosures sales increased by 116.4 percent.
This study also found that total home inventory declined in June. Total inventory was worth 13.06 months, a decline from the 20.31 months of inventory in June last year. Analysts said the increase in foreclosure homes in June made a dent on the inventory.
Nevertheless, more foreclosure properties are expected to push up current inventory levels because of the continued rise in default and foreclosure notices across the state, as reported in a compilation of nationwide foreclosure filings.
In June, nearly 14,000 housing units in Michigan received foreclosure filings, with more than 5,600 units already listed as foreclosed homes for auction or for agent sale.
