DETROIT (WWJ) – Home prices are at their lowest in eleven years in many of the country’s major cities. The Standard and Poor’s/Case Shiller 20-city index shows declines in 19 cities from December to January.
Detroit, along with Atlanta, Las Vegas, and Cleveland have price levels below what they were in the year 2000. Southfield Realtor Darralyn Bowers has a tudor home she loves and has sold 3 times in her career.
At its highest price in 1997 it was; “$220,000, now it will probably bring $60,000 – if it does go one the market,” says Bowers.
Bowers says the home’s neighborhood is so bad now, it’s likely the owners would abandon the place before putting it on the market.
“It’s incredible to go down a streets and see maybe six houses on a block and these were neighborhoods that were viable in (the year) 2000,” says Bowers.
“Mortgage financing is almost impossible because lenders have lost confidence in our market,” Bowers adds.
The only market in the country where prices rose was Washington, and that was a modest one-tenth of one percent gain over last month.