Detroit Foreclosed Homes Are An Indicator Of The Larger National Economy

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Between May and June 2009, housing prices fell 0.8% in Detroit, even as housing prices increased slightly across the country during the same time period. Financial experts note that lower prices mean even greater bargains for buyers looking to buy Detroit foreclosed homes. In fact, the Detroit foreclosures market is often a good bargain.

Since the city relies heavily on manufacturing and auto industries, it tends to be affected by economic downturns. During an economic problem nation-wide or state wide, foreclosed homes in Detroit become more plentiful and far less expensive as jobs are lost in the area. In fact, the foreclosure homes market in Detroit tends to react more quickly and immediately to financial pressures than many other communities across the country, financial experts say, making Detroit foreclosed properties a good litmus test for the foreclosures market across the nation.

High unemployment rates across Michigan in 2009 as well as increasing numbers of foreclosure properties in the area in mid-2009 have made financial forecasters predicting a slow recovery for the area but excellent bargains for buyers. Some signs of growth appeared in the Detroit real estate market in 2009, including increasing house sales. However, the market for foreclosures remains very much a buyers market.

In July 2009, Michigan saw one foreclosure filing for every 548 households in the state. A new law passed in 2009 will have a big impact on foreclosure listings in the foreseeable future. The law places a freeze on the foreclosure process for 90 days. The new law gives homeowners more time to stop foreclosure, and experts predict that the law may stem the tide of Detroit foreclosed homes in the near future. However, the number of foreclosures in the area is still expected to remain high as not all homeowners will benefit from the 90 day moratorium.


About the Author:
Joseph B. Smith has been educating buyers on the finer points of Detroit Foreclosed Homes for over five years. Visit ForeclosureDeals.com and read more advice on finding information about Foreclosures.



Article Originally Published On: http://www.articlesnatch.com


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