Average Home Price in Detroit Falls to $11,533; Monthly House Payment Would Be Less Than $50

According to the Michigan Association of Realtors and Detroit Board of Realtors (data here), the average sales price of a Detroit home fell to $11,533 in March (Year-to-Date), a -43.8% decline from the $20,514 average home price during the same period last year (see chart above). 2009 year-to-date unit sales increased by 23.1% to 4,139 homes, compared to 3,360 Detroit homes sold last year over the same period. From the $97,850 peak Detroit home price in 2003, prices have fallen by an amazing 88%.

With a 20% down payment on a $11,533 average priced home in Detroit, the monthly payments on a 30-year fixed-rate mortgage at 5% would be only $49.53.

For the entire state of Michigan, the average YTD home sales price has fallen by -28% to $87,033 through April 2009, compared to last year’s average price of $120,481 for the same period.

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About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

Visit: Carpe Diem

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