Not the next hot neighborhood
Detroit is definitely not America's Next Hot Neighborhood. Reuters reports that houses are now cheaper than cars in the Motor City with foreclosed houses (blame the sub-prime mortgages) flooding the market. Detroit's unemployment rate is at 14% with one third of residents living below the poverty line. Michigan was the only state in the nation where the average home price actually fell in 2006. One realtor interviewed, who just sold a house for less than one quarter of it's listing price, said, "Once we've seen the last person leave Michigan, then I think we'll be able to say we've seen the bottom." Now that's depressing.
therevitalist
Foreclosures are hitting Cleveland and suburbs hard, too. In several cities, the municipality is paying for security and maintenance of vacant homes to protect them from scavengers and squatters. The goal is to keep the empty houses from dragging the whole neighborhood into blight. The article features the heart breaking story of an elderly woman who apparently didn't understand the terms of her refinance and now will likely lose her home of 30 years.
therevitalist
therevitalist
in The Market
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