Increasing bargain sales of luxury homes in the Detroit area might mean sellers are resigned to a long-term buyers' market in the area, according to the Detroit News.
While it's good news that Detroit luxury units are finally moving into the sold column after years on the market, prices have been impacted by steeply declining property values in the region. A recent Clear Capital index showed real estate prices have dropped by significant margins throughout the Midwest so far this year, and with an average price decline of 19.8 percent, Detroit saw the greatest drop in the nation.
The Detroit News provides a number of examples illustrating how this pricing trend has played out in the city's luxury market. One home in Bloomfield Hills, originally listed at nearly $8 million, sold in January for less than $2 million. A Grosse Ile estate that went on the market for $11.2 million is now listed at $5.2 million.
Still, real estate agents told the Detroit News they are heartened to see sales for this demographic gaining steam. From a low of 54 luxury houses sold in 2008, sales reached 92 homes last year, and could break 100 in 2011, the News reports.
Recent surveys have shown the market for high-end real estate is stabilizing or flourishing around the country, including in Manhattan and Southern California.