Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Detroit’s Median Home Price Is $7,500
Old 03-05-2009, 06:55 AM   #1
Recycles dryer sheets
 
Join Date: Jan 2009
Posts: 170
Detroit’s Median Home Price Is $7,500

The median price of a home sold in Detroit in December was $7,500, according to Realcomp, a listing service.

Not $75,000. Remove a zero—it's seven thousand five hundred dollars, substantially less than the lowest-price car on the new-car market.

Among the many dispiriting numbers that bleakly depict the decrepitude of this onetime industrial behemoth, the steep slide of housing values helps define the daunting challenge to anyone who wants to lead this shrinking, poverty-pocked city of about 800,000 people.

Detroit's outlook falls along with home prices -- chicagotribune.com
__________________

__________________
Gpond is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-05-2009, 07:14 AM   #2
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,240
To a first approximation, you can add two zeros to Honolulu home prices - i.e., almost 100 times higher.

Honolulu Board of REALTORS® December 2008 Housing Sales Statistics for Honolulu (Oahu, Hawaii)
__________________

__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 03-05-2009, 07:25 AM   #3
Thinks s/he gets paid by the post
FIRE'd@51's Avatar
 
Join Date: Aug 2006
Posts: 2,315
The article doesn't say how many homes were sold, so the $7,500 median sales price is probably not representative. Also, I would presume the vast majority of homes sold in December were probably foreclosures on properties in terrible shape with property tax liens on them. That's not to say that Detroit isn't in bad shape, but the article may be sensationalizing a statistic. I'd be more interested in knowing what the median sales price was in Grosse Point, or one of the other suburbs.
__________________
FIRE'd@51 is offline   Reply With Quote
Old 03-05-2009, 07:47 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Aug 2002
Posts: 1,322
Quote:
Originally Posted by FIRE'd@51 View Post
I'd be more interested in knowing what the median sales price was in Grosse Point, or one of the other suburbs.
I know nothing about Grosse Point, or Detroit, but Zillow shows a median price of $189,500 for zip 48236 which is Grosse Point Woods. Don't know if this is good or bad.
__________________
FinallyRetired is offline   Reply With Quote
Old 03-05-2009, 10:01 AM   #5
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by FinallyRetired View Post
I know nothing about Grosse Point, or Detroit, but Zillow shows a median price of $189,500 for zip 48236 which is Grosse Point Woods. Don't know if this is good or bad.
The high end homes are in the (Detroit suburb) area called Grosse Point Shores. This area is nearby but should not be confused with Gross Point Woods. I suspect that these homes sell for considerably more than $189,500 even in this horrible market.




__________________
MasterBlaster is offline   Reply With Quote
Old 03-05-2009, 10:05 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Purron's Avatar
 
Join Date: Nov 2007
Posts: 5,584
I found this hard to believe so took a look at realtor.com. I found lots of smaller homes in Detroit selling for about $10,000. Here's an example:

20110 Stansbury St, Detroit, MI, 48235 - MLS ID#29024376 - Single Family Home real estate - REALTOR.com®

The weird thing is, Zillow shows the same property for sale for $25,000, a value of $98,000 and most of the homes around it valued at about $100,000. I would assume the low sales price is attributed to the fact it's a foreclosure and not in the best condition. The listing agent is an place called "rehabahouse".
__________________
I purr therefore I am.
Purron is offline   Reply With Quote
Old 03-05-2009, 10:18 AM   #7
Recycles dryer sheets
 
Join Date: Jan 2009
Posts: 170
Around 300 houses for sale for $500 and under. About a dozen for $1.

Detroit, MI, Real Estate Listings and Detroit, MI, Homes for Sale - REALTOR.com®

If you have ever been to Detroit (it is up the road from me) there are many houses in the same sale price range that are not listed here. You can buy a dozen houses in a row for under $1200 - total.
__________________
Gpond is offline   Reply With Quote
Old 03-05-2009, 10:45 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Purron's Avatar
 
Join Date: Nov 2007
Posts: 5,584
Quote:
Originally Posted by Gpond View Post
Around 300 houses for sale for $500 and under. About a dozen for $1.
I looked at the link and did see a lot of homes for $1. Then I checked the stock market and saw it was down about 200 and Citigroup is now trading for 98 cents a share. I'm off to Wal Mart to get some tin foil for a hat then on to Costco for a couple of 50 pound bags of rice.
__________________
I purr therefore I am.
Purron is offline   Reply With Quote
Old 03-05-2009, 10:52 AM   #9
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
A lot of these require many thousands more in tax liens in order to close.

Sounds like some kind of marketing promotion: "Buy all these back taxes and get the house for free!"
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 03-05-2009, 11:32 PM   #10
Dryer sheet aficionado
 
Join Date: Jan 2009
Posts: 44
Quote:
Originally Posted by Gpond View Post
Around 300 houses for sale for $500 and under. About a dozen for $1.

Detroit, MI, Real Estate Listings and Detroit, MI, Homes for Sale - REALTOR.com®

If you have ever been to Detroit (it is up the road from me) there are many houses in the same sale price range that are not listed here. You can buy a dozen houses in a row for under $1200 - total.
Those houses foreclosed after the owners defaulted on a mortgage of $600,000 for each house. Those mortgages were given out by suckers at Fannie Mae and Citigroup.
__________________
atlas888 is offline   Reply With Quote
Old 03-06-2009, 06:03 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,968
Quote:
Originally Posted by Gpond View Post
The median price of a home sold in Detroit in December was $7,500, according to Realcomp, a listing service.

Not $75,000. Remove a zero—it's seven thousand five hundred dollars, substantially less than the lowest-price car on the new-car market.

Among the many dispiriting numbers that bleakly depict the decrepitude of this onetime industrial behemoth, the steep slide of housing values helps define the daunting challenge to anyone who wants to lead this shrinking, poverty-pocked city of about 800,000 people.

Detroit's outlook falls along with home prices -- chicagotribune.com
Do you want to live in Detroit?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Hey, I live in a Detroit Suburb
Old 03-06-2009, 08:05 AM   #12
Recycles dryer sheets
DougViages's Avatar
 
Join Date: May 2007
Location: Belmont
Posts: 160
Hey, I live in a Detroit Suburb

I witnessed the rampant fraud in City of Detroit real estate transactions first hand. I worked for a construction guy who owned 10 -12 Detroit houses as rentals. It never made him any money, only lots of headaches. He decided to sell out, and I worked with a Detroit RE agent to sell the houses. At the time, maybe 6 -7 years ago, the average small, old brick bungalow sold for $40,000 to $50,000. That was reasonable at the time in that market.

What actually happened: I went to my closings, and sometimes glimpsed other paperwork for a SECOND closing right after mine was done and they showed me the door. If my 'real' closing was for $45,000, the second closing might be for $75,000. The parties involved, RE agent, fake buyer, appraiser, Detroiters all, defrauded the lenders, and pocketed $25,000 in total after costs.

Guess what, these mortgages 'held no water'.

Come on to Beautiful Detroit!
__________________
Work is the curse of the partying class!
DougViages is offline   Reply With Quote
Old 03-06-2009, 08:39 AM   #13
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Nothing like buying at the bottom! FWIW I bought half a dozen properties below $15k. Rented and managed them for ~10 years and sold many for 10 fold what I paid. Still have few of them.

Detroit will come back and lots of people will be remembering what they could'a/should's/would'a paid for that SF accross the street.
__________________

__________________
FIRE'd since 2005
tryan is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
$7,500 First Time Home Buyers Credit - Free Money? LeBlanc Young Dreamers 8 09-20-2008 05:05 PM
Home price drop is biggest ever Wags FIRE and Money 15 01-30-2008 07:14 PM
Gross anatomy: Home price vs salary Mary_From_Georgia Young Dreamers 42 01-06-2008 06:12 PM
Where was that great website about home price trends? spncity FIRE and Money 5 12-31-2007 09:34 PM
Home Price Appreciation Forecasts Hyperborea FIRE and Money 0 09-05-2004 10:19 AM

 

 
All times are GMT -6. The time now is 04:15 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.