Stronger Sales and Prices of Single Family Homes in Michigan

by Peter Vernon on Foreclosures

The surge in sales and prices of single family homes in Michigan in April are adding to many other positive economic developments in the states.

In April, statewide home sales jumped up over the year by 9.5 percent, with the average sales price spiking by 14.9 percent. Total sales from January to April this year also increased by 7.4 percent over the same period last year, with the average sales price spiking by 12.2 percent.

In Southeast Michigan, the median sales price for foreclosed homes for sale increased by 47 percent from $25,255 to $37,000 while the median price for nondistressed homes climbed up by 4 percent from $99,000 to $102,950.

The prices of multi family and single family homes improved statewide in April because sales of nonforeclosure homes increased by more than 46 percent to 3,343 units while sales of foreclosure properties decreased by more than 33 percent to 2,452 units.

Despite the continued growth of Michigan foreclosure listings as shown in the increased number of foreclosure postings in April and in May, residents of Michigan are hopeful they can recover faster than expected because of the many positive things developing in the state in recent weeks.

The unemployment rate has gone down from 14.5 percent to 14 percent in April and then continued to fall further to 13.6 percent in May. The state gained 24,000 jobs as manufacturing firms stepped up their hiring in May, cutting down the number of unemployed workers by 19,000.

Another great development is the continued operation and expansion by ten big companies that received tax credits from the state, including Ford Motor and Detroit Diesel. These ten companies are contributing 10,000 jobs and are expected to increase their workers by 1,000 more in the coming weeks.

Detroit Diesel, maker of heavy-duty engines, employs over 7,700 workers and plans to spend $194 million more to boost its Redford Township plant.

With these significant improvements in Michigan, it is hoped that more people are able to buy multi family and single family homes and help rejuvenate the state housing market.

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