May 27, 2018

Detroit: Bankrupt Town With Bustling Housing Market?

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Detroit: Bankrupt Town With Bustling Housing Market?

While Detroit has become the largest U.S. city to ever file for bankruptcy, its housing market is bouncing back in a big way. 

The median sales price of a home in Detroit has risen nearly 45 percent in the past year to $123,000, according to data from Realcomp, a Multiple Listing Service. Homes are selling faster, too: The average time spent on the market has dropped from 81 to 66. 

"In neighborhoods, we've seen housing values go ... dramatically up from where they were about four years ago," says Daniel Stern, partner at Lormax Stern Development. "The bankruptcy, for us, it's old news. We hit our low four years ago, and we're in a very, very steep incline up now."

The city’s bankruptcy filing will likely lead to more money being freed up to devote to public services, revitalization, and some demolition projects, CNBC reports. 

"All of us locals — we're all buying now," Stern says. "We have been buying. ... Any type of rental property downtown has a waiting list.” 

Source: “Detroit showing pockets of real estate strength: Realtor,” CNBC (July 22, 2013) and “Detroit may be bankrupt, but home prices are still rising,” HousingWire (July 22, 2013)

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