Foreclosures plummet in Michigan

Yesterday, as part of the report on the real estate market in Berkley, I noted that foreclosures had dropped year over year.  Today, RealtyTrac announced in their Mid Year 2013 U.S. Foreclosure Market Report that foreclosures have “plummeted” (their word) in Michigan.  

The report released numbers that show the foreclosure rate is the lowest in years for the first half of 2013.  The numbers are even lower in some areas than they were in pre-recession days.

In Oakland County, there were 2,572 filings in the first half of 2013.  That represents a decrease of 44 percent over the second half of last year and a 54% drop over a year ago.  

Buyers use all homes sold in an area that compare to a home they are considering as one factor in determining the value.  Homes that are third party owned or in foreclosure generally represent a greater risk than homes that are privately owned so they are priced lower than comparable homes.  This brings down the total market value of all homes in the market.  With foreclosures and third party homes decreasing, the total market value of homes will rise.

The market is impossible to predict with any certainty.  Market conditions can change in a short period of time and reverse themselves.  But, there is every indication that the real estate market is improving as supported by this recent report on the drop in foreclosed homes on the market.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.