The real estate market in Detroit is seeing a major surge in both home sales and prices, according to a new report from Detroit Future City. The report, released on Tuesday, analyzed home sale transactions in Wayne County from 2012-13 to 2020-21 and revealed some fascinating trends that challenge traditional real estate data sets.
Image: The report (source: sanaulac.vn)
The findings of the report confirm what many have observed in recent years - the housing market in Metro Detroit has experienced a significant rebound since the Great Recession, extending even to neighborhoods where homes were once sold for as low as $10,000.
Number of Sales Jumps
The report highlights substantial increases in the number of home sales in various census tracts across the city. Let's take a look at the neighborhoods that saw the biggest jumps:
- Core City: Total sales increased from 2 to 11, a staggering 450% jump.
- North Corktown: Total sales increased from 9 to 31, a remarkable 244% increase.
- Chadsey Condon: Total sales increased from 11 to 36, a significant 227% rise.
- Gratiot Woods: Total sales increased from 42 to 124, a notable 195% surge.
- Midwest: Total sales increased from 56 to 160, a commendable 186% growth.
And the list goes on!
Sale Prices Jump
Alongside the increase in sales, the report also highlights significant jumps in median sales prices from 2012-13 to 2020-21. Some of the neighborhoods that witnessed the most substantial increases in sales prices include:
- North End/Milwaukee Junction: Sales price rose from $3,503 to $122,500, an astonishing 3,398% increase.
- Core City: Sales price rose from $3,000 to $70,000, an impressive 2,233% jump.
- Wildemere Park: Sales price rose from $6,300 to $115,500, a remarkable 1,733% increase.
These increases in sales prices indicate a significant appreciation of property values in these neighborhoods.
Citywide Median Rises
According to the report, the median home sale price across all of Detroit rose to $30,000 in 2020-21 from just $15,000 in 2012-13. This indicates a doubling of the median sale price, which is a promising sign for the city's real estate market as a whole.
Image: Construction workers were nearing completion of new upscale condos in Detroit (source: sanaulac.vn)
More Mortgage Lending
The increase in home sale prices has also had a positive impact on mortgage lending in some Detroit neighborhoods. Traditionally, lenders are often hesitant to provide small-dollar mortgages, such as those below $50,000. However, the rising prices have made it easier for potential homebuyers to secure mortgages, enabling a greater opportunity for homeownership in the city.
While progress has been made, discrepancies in mortgage originations persist. The report highlights that African Americans, who comprise 77% of Detroit's population, are denied home purchase loans at twice the rate of white applicants. Addressing these disparities is crucial for rebuilding equitable homeownership in the city.
Detroit's real estate market is experiencing an impressive resurgence, with significant increases in both home sales and prices. These findings from the report provide valuable insights for homebuyers, investors, and policymakers alike, shedding light on the neighborhoods that have experienced the most growth and potential investment opportunities.
