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Average home prices in Detroit up 5%

09.14.07 | technician | In real estate, subprime

Face it, sellers: Appreciation isn’t what it used to be. In the good markets, prices are creeping up slowly, if they are creeping up at all. And in the overbuilt, oversold markets, appreciation is nonexistent.

In fact, according to the latest government survey, prices are down in 18 of the nation’s 32 largest metropolitan areas and up only slightly in the other 14.

But the year-over-year fall-off was far more dramatic in some markets. In Las Vegas, for example, prices have slumped 20 percent. In Milwaukee, there’s been an almost 16 percent slide in the past 12 months. And in Philadelphia, prices are down 11 percent.

Certainly, some of this has to do with the fact that more than the normal number of lower-priced houses changed hands in this year’s second quarter. But that proves the point: Houses priced for today’s conditions will and do sell.

So get real: Unless you bought the house you are now trying to dump at the top of the cycle, you are still going to make money. You just aren’t going to make as much as you would have had you put the joint on the market, say, a year ago.

Several other markets that may never make the Top 10 also sported significant gains in the face of a tighter mortgage market and severe overbuilding and overselling. Kansas City was up 9.9 percent in the quarter, for example. Orlando claimed a 6.6 percent increase, and Houston and Detroit both had gains above 5 percent.

At the other end of the price spectrum, the average is below $200,000 in only three of the nation’s 32 largest metro areas. In Dallas, the average is $188,100, down 3 percent from $193,900. Detroit is next at $190,100, up 5 percent from $181,000, followed by San Antonio at $199,600, an increase of 1.1 percent from $194,500.

There’s been a lot of bad news about the housing market in Michigan and the United States. In fact, many other parts of the world have not been immune to this drop in housing prices. While the slow real estate market is not likely over at least there’s some good news. The average price of homes sold in Detroit has gone up more than 5% although remaining one of the nation’s more affordable markets having increased from $181,000 to $190,100. Interestingly, that slightly more than the average price in Dallas which has actually decreased.

From the Herald Tribune.

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