Detroit Real Estate Market – The Comeback Kid in 2012?
. The Detroit housing market could truly be the comeback kid in 2012. Detroit Housing Market, Then and NowThe Motor City was devastated by the fall of the housing market and subsequent recession. But things are starting to look up. Home prices in Detroit have likely hit bottom already. In fact, the Detroit metro area could be one of the most stable real estate markets in 2012. Homeowners may enjoy some appreciation over the next three years.
A few years ago, these statements would have seemed like an impossible dream. The Detroit real estate market was one of those hit hardest by the housing crisis. In fact, it was an honorary sand state . It was right up there with California, Nevada and Arizona, in terms of foreclosures and price declines.
Housing markets in the sand states were overbuilt and overpriced, a classic bubble scenario. Detroit was different. The Motor City’s woes were brought on by massive job losses in the auto industry, resulting in one of the highest unemployment rates in the country (still hovering above 11%). As a result of these and other factors, home prices in the city have fallen by a staggering 60% since their 2006 peak.