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March 26th, 2011

A visual glimpse into Detroit’s housing decline

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Detroit has suffered from a domino effect of declines. The city’s declining industrial base has taken away jobs, causing residents to flee what was once America’s fourth-largest city.

-Can you afford to buy a home in your city?-

The lack of jobs and declining population has triggered a massive wave of foreclosures which only served to bring home prices down further, and left already-abandoned structures to decay even more.

According to figures released by Realcomp, the median home price in Detroit (for the fourth quarter of 2010) was a shockingly-low $66,300. In comparison, the median home price (for the same period) in Orlando, Florida, an area of the country that has been hammered by foreclosures and falling home prices, was $128,400.

The Huffington Post published a slideshow this week in which they describe the pictures as a “haunting” look at Detroit’s decline.

CLICK HERE to view this slideshow.

In related news, Bank of America is reportedly set to help the city of Detroit demolish certain abandoned structures and will donate the plots to the Motor City to increase their Green farming initiatives:

Bank of America, the country’s largest bank by assets, has announced an initiative to demolish one hundred abandoned Detroit homes currently under the bank’s ownership, a task that CEO Brian T. Moynihan says will “help ‘right-size’ the city,” according to the Detroit Free Press.

The bank, which estimates the costs at $1 million, says the land plots will be donated to the city “for green space, urban farming or redevelopment.”

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3 Responses to “A visual glimpse into Detroit’s housing decline”

  1. Beth Says: March 27th, 2011 at 12:35 am

    Tim I don’t understand a majority of the people are affected by mortgage disaster with foreclosures and all the repercussions that come with it – yet some people manage to bounce back a get a new mortgage for a home – with a ‘lower than’ credit score. I have been renting at 900 a month going on 4 years and each time I have gotten close to getting pre-approved something changes. I am looking daily for the one bank to say ‘yeah’ – I have never been late on my rent; pay all utilities; employed full time and make a descent wage and by a few numbers the answer is “I’m sorry” – is there any resource for me

  2. Tim Manni Says: March 28th, 2011 at 10:00 am

    Hey Beth,

    Well I can tell you that anyone who has been through a foreclosure recently won’t be buying another home anytime soon. If you let me in on some of the particular reasons why you’re being denied i can try to provide you with some insight into why you aren’t being approved for your home loan and what resources are available.

    Hope to hear back from you, thanks for commenting,
    Tim

  3. Mitch Mitchell Says: April 2nd, 2011 at 12:24 am

    The wildest thing to me was hearing last week how Detroit has lost almost 25% of its population from its boom days. With that many people leaving, it’s no wonder that housing is in such disarray, and not only because of foreclosures obviously.

    Strangely enough, Detroit could learn a lesson or two from Syracuse, NY. Most of our factories left starting in the 80’s when General Electric first sold itself to someone else, then was sold again, and it continued with other manufacturers. The city could have lost a major chunk of its population, but the city leaders and the country embarked on a technological crusade that not only has made the city one of the top technological centers in the northeast, but has created jobs because someone has to build all that stuff that technology figured out. Sure, there was still some loss, but not even 2% over the last 10 years; that’s pretty phenomenal, especially with our weather.

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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