Does a foreclosure or short sale in my neighborhood affect my home’s value if I have a home in the Metro Detroit Real Estate market? Absolutely it does with approximately 50% of all homes sale in the Metro Detroit housing market being either a foreclosure/REO (real estate owned) or a short sale this does paint a picture of what is realistically happening in the Metro Detroit Real Estate Market. Several years ago, when foreclosures only accounted for less than 5% of the home sale transactions in the Metro Detroit Real Estate Market these would not be considered a good depiction of what a home was valued at in this market. The positive sign is in the past few months the banks have not been listing homes at the typical 5-15% below the average sales price and appear to be pricing homes more in line with what a private owned home sale transaction is taking place in the Metro Detroit Real Estate Market. Hopefully this is a positive sign that the Metro Detroit housing market has seen it’s worse days and can only get better from here. I’ll chat more about this in a future post.
I am asked this almost every time I meet with any home owner thinking on selling their home in Metro Detroit