The Wallethub report was created “in light of good news” for the housing sector across the U.S. economy, but Detroit as a whole is looking left behind. In an email we were shared the following metrics about the city of Detroit, with 1 being the best and 150 being average:
298th – % of homes with negative equity
205th – Average number of days until a house is sold
276th – Median home-price appreciation
265th – Job growth rate
176th – % of mortgage holders in delinquency
284th – Number of unsold homes owned by banks (REOs)
299th – Unemployment rate
299th – Population growth rate
The city itself isn’t the only area facing challenges. The report says out of 300 major areas (Sterling Heights, Livonia, and Ann Arbor are also in the report) the neighboring suburb of Warren in Macomb County now is tied for the highest foreclosure rate in the country.
The city of Detroit is a big place, so it’s not enough to look at the top line numbers to get an accurate snapshot.
The Second Quarter 2016 Housing Tracker by the Urban Institute released in July of this year shows the gap between downtown Detroit and the graph below illustrates the stark difference in residential prices when you’re in the greater downtown versus the rest of the city. We’ve included a map of the districts the UI report used and then the comparative sale prices.
Changing tastes are changing the market
Overall, real estate folks seem positive – and places are definitely selling well in some areas – but there are specific things people are looking for.
“Location is key as some buyers are looking to settle in already well established areas while others are looking for the ‘next great place,’” says Tim Quinn, a realtor specializing in the city since 1980.
The type of housing matters. Buyers want a dense, city experience – not cul-de-sac or tract housing you can readily find in the suburbs or in some neighborhoods of the city.
“Most of the city buyers I am seeing are looking for upscale conversations in old buildings. Lofts like those at 200 River Place (originally a 1906 Parke Davis lab) and Willys Overland lofts (originally the Willys automobile company built in 1912) are good examples. Some buyers are split between midtown and the riverfront with both areas having a lot to offer. Free standing homes are also getting a lot of attention in areas like Indian Village, West Village, Boston Edison, Corktown and North End.”
What about other neighborhoods?
“The growth is spreading and more and more areas are experiencing a lift. That said, this is a big city with a lot of land and it will take time, but it has begun to happen,” says Quinn.
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