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$9,200 houses

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Michigan CG

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I was driving home from Lansing last night listening to WJR and Mitch Albom reported that the median home sale price in Detroit (the city of) was............$9,200.

Not $92,000 -- $9,200.

Additionally, the median sale price for the entire metro area according to him was $84,000+/- down from $127,000+/-......down 33.9%.

WOW.....of course if you take Detroit out of the rest of the area the median for the metro area would be higher.

Pretty amazing when you consider the national median house price is around $195,000.
 

redfish

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Sep 2, 2007
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Michigan
I just did a portfollio analysis for an investor in the 48227. 5,500 was the median price over the last 6 months in the specific sub-market I was working in. The previous 6 months, the median was $7,500.
 

Michigander

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Oct 23, 2003
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Michigan
In the MLS, the percentage of REO properties has to be at least at the 70% mark or more (has anyone run statistics on the number of REO to non-REO sales?). If these properties are not properly secured, they get trashed out of valuable plumbing and guts, contributing to even lower sale prices. There is very little discretionary selling going on right now, and the only higher sales you typically see are questionable as soon as you do a little research. I believe Mitch must have taken his stats from the MLS and think he's probably pretty close to reality.
 

Artemis Fowl

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Mar 16, 2004
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Certified Residential Appraiser
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Michigan
I do that for every job. 70% is about right for many areas Serena. I did an REO assignment a few weeks ago where the subject had all its copper plumbing, wiring, furnace, AC and no broken windows. Screwed me all up.
 

LA Woman

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Jul 18, 2007
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California
If you check out realtor dot com for inner cities in the rust belt, these types of housing prices are common. You can buy homes all day long for $5,000 in Ohio, Indiana, etc.

My question is will they cash flow? You would think they could, but, are there renters for these homes?

Any appraisers out there in Cleveland or South Bend that can give us the answer?
 
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