Detroit’s Housing Market: Putting Risk into Context
On Friday, I saw a story on the local evening news stating that Detroit’s housing market is the riskiest in the Midwest in terms of the possibility that it will suffer a price decline in the next two years. Always the optimist when it comes to Detroit, I did want to point out one other statistic that the television station’s report failed to mention:
although Detroit did rank at the top of the Midwest’s most-likely-to-suffer-a-decline-in-housing-in-the-next-24-months report, it also had the greatest drop in riskiness among all of the cities in the report when compared to their respective riskiness ratings last quarter. An article in CNN Money’s online edition on the same study that the local news used for its story stated that Detroit’s housing market “got a little safer in the quarter”.
The study gave Detroit a riskiness rating of 37.9% last quarter and a 29.5% rating this quarter.
See riskiness ratings for all of the cities in the study here.
Well, seeing that a Houston company bought 400 Detroit properties last Friday; and, also plans an additional purchase of over 600..I think Detroit has come a long way, and this bigh purchase should be a testament.
More info:
(http://www.crainsdetroit.com/cgi-bin/news.pl?newsId=6577)
Yes, Detroit_Luveur, I agree with you and actually posted on this very thing on my personal blog, Girl in the D, (a blogger blog, which I cannot link to on this webpage) last night.
Remember that this is the Detroit Metro region that is risky, not the city on its own. It is risky largely because of our economy, and the state of our largest employers.
Thanks for your comment, JSMyers. It is important to note, though, that the statistics are based on a portion of the Metro Detroit region (the Detroit-Dearborn-Livonia region only), and not the entire Detroit Metro area (which is composed of 9 counties) as you suggested. The Detroit-Dearborn-Livonia region spoken about in the study has a population of a little more than 2 million people, while the Detroit Metro area has a population of more than 5.5 million.