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$7000 per home in Detroit

Abandoned housing in Saskatoon Wow, CBS News is saying that the average home price in Detroit is only $7000.

Detroit real estate broker Ian Mason currently has 200 listings, largely foreclosures banks are desperate to get off their books. And that desperation is making for some incredible deals.

Bowers asked him how much he sold one house for.

"One dollar," he said.

It’s a house he says that just a few years ago would have sold for $75,000.

Home values across the country have taken a tumble. Nationally, the median home price is $174,000. But in Detroit, the average is only $7,000 – which may help explain why home sales are soaring.

January sales are up 37 percent over last year with 1,000 homes sold last month alone.

Those are people like young single mom Sofia Hawkins who’s found her home sweet home.

She got a home for $1,100. Can she even believe it?

"No, not really," she said. "It was a good deal."

And now she now owns a three-bedroom house for just twice what she used to pay each month in rent.

It’s hard to believe that it is that bad in Detroit and it’s gotten that bad so quickly.  How many years until houses would reach average levels in Detroit?  Ten years?  Twenty years?  Fifty years?  Will Detroit ever recover?

2 Comments

  1. Mark Byron says:

    Not too many people are going to be in the housing market in Detroit city in January; it’s a lousy time to move and (if I recall correctly) it’s been a bad snow month. My parents live 100 miles northwest of Detroit and have had a rough winter so far.

    So, what houses do sell would tend to be foreclosures, possibly in tough neighborhoods; there are nice parts of Detroit proper, but the vast majority of the middle-class-and-up housing is in the suburbs. My guess is that the median house in Detroit would be closer to 50,000, but not too many normal house sales are going down.

    When will Detroit recover? Good question. A renaissance in the black urban culture that cuts down on crime and other social dysfunctions and some sort of economic renewal that brings businesses back to the city rather than the suburbs and exurbs; some sort of brownfields legislation that encourages clean-up of old factory property rather than letting them sit idle would help.

    2050, maybe? Cleveland was the Mistake By the Lake 40 years ago and has a revived downtown, including new sports arenas, the Rock and Roll Hall of Fame and a entertainment district on the Flats of the Cuyahoga River about where the river burned in the late 60s. It can be done.

  2. Mark Byron says:

    A quick follow-up. I checked in with the NOAA web site and Detroit had 25 inches of snow in January, double the norm and only four inches off the record. Not good house-shopping weather.