Price of BofA Foreclosure Homes and Other Residential Properties Drop

by Peter Vernon on Bank of America Foreclosures

The prices of houses in some areas of Michigan, including BofA foreclosure homes, declined during the month of October 2010 when compared with the same 2009 month. In metro Detroit, the decline for the month was 23% according to a report from Realcomp.

According to housing market analysts, most residential properties in the region, including Warren bank foreclosures, recorded declining prices following the end of the tax incentive offered by the federal government to home buyers. They reveal that the government initiative temporarily boosted home buying from last year to the early part of the current year.

However, once the deadline for the incentive arrived, prices of regular homes and Michigan foreclosures for sale started dropping as shown in area housing reports. For October 2010, median prices of houses dropped by 7% to $65,000 in the Detroit metro area. The number of residential properties sold during the month in Detroit is also fewer than the previous year.

A total of 3,983 residential properties, including BofA foreclosure homes and condominium units, were sold in the metro in October 2010 which is far less than the 5,194 sold during the same 2009 month. All areas of Detroit, including the counties of Macomb, Livingston, Wayne and Oakland recorded declining home sales and house prices for October.

The number of people buying foreclosure homes and other types of residential properties dropped by 24% in Oakland and Macomb, while Wayne County recorded a drop of 23% when compared with previous year's records. In Livingston, housing sales declined by 15%, while the city of Detroit recorded a decline of 34%.

Supply of houses for sale also dropped in October 2010, posting a total of 36,351 compared with 42,784 in October 2009. When prices of houses for October are compared with the previous month, Detroit counties showed mixed results. Average selling prices of homes in Wayne climbed by 8.6% between September-October 2010.

In Oakland County, prices of BofA foreclosure homes and other types of residences declined by 5.5%, while Macomb recorded a drop of 9.7% between September and October 2010. Livingston, on the other hand, recorded a monthly price decline of 4.5%. For the city of Detroit, home prices jumped by 25% between September and October 2010.

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