The Detroit News, March 15:The region's nonforeclosure sales increased 10.7 percent from February 2010, but sales of foreclosed properties dropped 16.6percent, for a total sales drop of 4.9 percent, according to Realcomp II Ltd., the Farmington Hills multiple listing service.
The reason, says Realcomp Chief Executive Officer Karen Kage, is that fewer foreclosed properties are coming on the market, a trend seen in the 15.2percent decline in total listings during the month.
"That's because there are far fewer foreclosures on the market," Kage said. "But as foreclosures come on the the market, I think we're going to see them sell quickly."
In more simple language, home sales are declining because the über-cheap foreclosed properties are no longer as plentiful.
The Obama administration has been setting up programs to help homeowners avoid foreclosures. The measures are important to hard hit areas like Metro-Detroit.
However, recent moves by the House of Representatives may limit those programs.
The most pressing issue for many metro-municipalities is when will property values begin to rebound?
Local and state revenue is tied to property values. When folks stay in their home, property values stabilize and that's a good thing for local communities and local governments.
On the flip side, when folks are able to stay in their homes, those homes are not put on the market. Hence, sales drop. What is good for the real estate goose is not necessarily good for the Michigander.
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