<p>I was told today that home prices are starting to increase in places around Chicago and Detroit. :eek:</p>
<p>Is this person wrong?
Anybody seeing home prices increase in their communities?</p>
<p>I think home prices are flat where I live…</p>
<p>Listings inventory has shrunk in Tampa Bay area according to attached news story, but that could change real fast if lenders dump more of their foreclosed houses on market. At least prices are leveling, rather than sinking.</p>
<p>[Supply</a> of Tampa Bay area homes for sale shrinks to 5-year low - St. Petersburg Times](<a href=“http://www.tampabay.com/news/business/realestate/supply-of-tampa-bay-area-homes-for-sale-shrinks-to-5-year-low/1198524]Supply”>http://www.tampabay.com/news/business/realestate/supply-of-tampa-bay-area-homes-for-sale-shrinks-to-5-year-low/1198524)</p>
<p>Maybe throw in D.C with Detroit and Chicago for a slight upward tick in prices recent months. Things are flat almost everywhere else it seems according to Tuesday’s Case-Shiller release; Atlanta took the biggest dip recent months for metro areas in survey.</p>
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<p>Yeah…sometimes the numbers lag what is going on the ground…so i was curious what people see…</p>
<p>I did not expect to hear that things were improving in Detroit…
but that was just an opinion…</p>
<p>Flew through Detroit yesterday and spoke to someone who lives there. He did say that housing prices were starting to trend up. He seemed pretty upbeat about the housing status.</p>
<p>Prices listed are up. Prices paid are down. Prices being up simply means more new houses on the market.</p>
<p>As far as I know, in Detroit, the City bulldozed a lot of houses to make park, therefore, the housing stock went down and the price is up. We had some Turkish clients bought into some empty developments and immigrated Turkish ppl to occupy those homes at rediculously low price as vacation home or student quaters.</p>
<p>Case-Shiller’s real estate reports are one of the most reliable services around for prices. Their indices use arms-length closed sales. Their report from Tuesday suggests that slight Detroit home price increases may be due to pickup in business for US auto industry–that’s good news!</p>
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<p>Home prices in the Minneapolis-Saint Paul metro region have been up a little on a month-to-month basis every month since May '11. They took a brutal plunge before that, though, so year-to-year comparisons are still down. That’s why we get confusing and seemingly contradictory (but in fact perfectly consistent) news stories like the following:</p>
<p>[Home</a> prices about the same in August as in July - TwinCities.com](<a href=“Home prices about the same in August as in July – Twin Cities”>Home prices about the same in August as in July – Twin Cities)</p>
<p>[Home</a> Prices Still Dropping In Twin Cities CBS Minnesota](<a href=“http://minnesota.cbslocal.com/2011/09/22/home-prices-still-dropping-in-twin-cities/]Home”>Home Prices Still Dropping In Twin Cities - CBS Minnesota)</p>
<p>A lot of people in real estate around here seem to feel we’re past the bottom, though. The inventory of homes for sale has shrunk considerably, there aren’t quite so many foreclosed properties and short sales, prices are firming up or even starting to creep back a little, and there’s definitely pent-up demand out there. But a lot of people are still afraid to borrow, and banks are afraid to lend. A few more months of even modest price gains, and I think a lot of potential buyers are going to start to be afraid of waiting too far past the bottom. </p>
<p>As for Detroit, I know a lot of people there. With the auto industry now going great guns and even doing some substantial new hiring, things are starting to pick up around there, and housing prices are definitely starting to creep back. The unemployment rate is still extremely high and the city of Detroit proper is still pretty much a basket case, but there’s a lot more money circulating in the metro Detroit economy than during the depths of the recession. Keep in mind that’s a modest recovery from an extraordinary low point, though; they were practically giving houses away there for a while. I don’t think the city’s razing of abandoned buildings has much to do with the price rise, except insofar as it makes some areas of the city less unsightly and possibly less unsafe. But the price movement is mainly in the suburbs, not in the city.</p>