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Detroit House Prices Soar DESPITE Fiscal Woes (Close to SF House Price Gains)
Confounded Interest ^ | 07/30/2013 | Anthony B. Sanders

Posted on 07/30/2013 7:31:21 AM PDT by whitedog57

The S&P/Case-Shiller index of house prices climbed 12.2 percent from May 2012, the biggest 12-month gain since March 2006, after advancing 12.1 percent a month earlier.

cs073013

The Case-Shiller index is separating from the MBA Purchase Application Index. The MBA numbers are due out tomorrow.

csmbapurchae

Here is a breakdown of the Case-Shiller index. Los Angeles, which accounts for a whopping 15.1% of the Case-Shiller 20 house price index, posted a 19.2% YoY gain. San Francisco posted a 24.5% gain, and 23.3% in Las Vegas. New York posted the smallest gain at 3.3%.

csmetro073013a

The big surprise? Bankrupt Detroit gained 19.1%, although its level is far below the national average.

csdetroit

If we compare Case-Shiller 20 with the LPS and FNC house prices indices, we see similarities (with CS and LPS being very close and FNC not showing the steep increases).

csfnclps073013

According to CoreLogic, Florida, New Jersey and New York have the highest percentage of foreclosed inventory.

clfore073013

Lastly, the Conference Board Consumer Confidence index fell to 80.3. It still remains below levels last seen in 2008.

cc073013

Detroit, who would have thought?


TOPICS: Business/Economy; Government; Politics
KEYWORDS: caseshiller; detroit; housing
Detroit and SF big winners.
1 posted on 07/30/2013 7:31:21 AM PDT by whitedog57
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To: whitedog57

Speculative purchases based upon the hope of regulatory reform.


2 posted on 07/30/2013 7:33:10 AM PDT by glorgau
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To: whitedog57

Yeah, I’d sure describe Detroit as a “winner.”


3 posted on 07/30/2013 7:33:41 AM PDT by dinodino
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To: whitedog57

So the $500 houses are now worth $650?

It’s hard *not* to go up from nothing.


4 posted on 07/30/2013 7:34:09 AM PDT by Marie ("So a Hispanic shoots a black and is acquited by women, but it's still white men's fault" ~ Wargas)
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To: whitedog57

Vulture investors.

The place would be valuable if you could buy the whole thing and eject the current inhabitants. Maybe someone will?


5 posted on 07/30/2013 7:34:19 AM PDT by proxy_user
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To: whitedog57

I don’t think this pertains to the city. This must include the outlying areas, where it is a fact, the housing market is booming. We live about 45 miles from Detroit and one has to be on the ball to get a nice home. From listing to offer... mere hours. We got ours before it even hit the market by canvassing subs and asking if anyone in the area was going to move anytime soon... and by the Grace of God too, of course.


6 posted on 07/30/2013 7:35:42 AM PDT by Mathews (Ecclesiastes 10:2 (NIV), Luke 22:36 (NIV))
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To: whitedog57

Mr. Donald Trump? Please pick up the white Courtesy Phone in the Lobby!


7 posted on 07/30/2013 7:35:47 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: glorgau

You are on to something.

Downtown Detroit is home to one of the worst housing markets in the country, as prices of homes have collapsed and foreclosures have soared in the city’s depressed economy.

But some Chinese investors hungry for real estate are hoping Detroit’s losses will be their gain. After Detroit filed for bankruptcy July 18, Motor City property has been a hot topic on China’s social media platform, Weibo, according to a Quartz.com report.

News of the bankruptcy, coupled with a Chinese TV report in March that claimed you could buy two houses in Detroit for the same price as a pair of leather shoes, has piqued investors’ interest.

http://www.foxnews.com/us/2013/07/29/chinese-investors-betting-on-detroit-comeback-buy-up-real-estate/


8 posted on 07/30/2013 7:39:31 AM PDT by fudimo
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To: Marie

$5 house is now worth $6.50


9 posted on 07/30/2013 7:41:38 AM PDT by Hieronymus ( (It is terrible to contemplate how few politicians are hanged. --G.K. Chesterton))
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To: whitedog57

The Chinese are buying properties in the hundreds at a time.

And no, I am not kidding. There was an article about it here the other day.


10 posted on 07/30/2013 7:52:19 AM PDT by autumnraine (America how long will you be so deaf and dumb to thoe tumbril wheels carrying you to the guillotine?)
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To: fudimo

No doubt these Chinese investors never actually experienced the wonder that is inner-city Detroit in person.


11 posted on 07/30/2013 7:52:41 AM PDT by rightwingintelligentsia (Truth/Lies; Liberty/Tyranny--WHAT DIFFERENCE DOES IT MAKE??)
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To: whitedog57
There was an article posted on FR a few days ago: Chinese investors are buying houses in Detroit like candy from a store.

Reportedly, they are doing so sight unseen, relying on local realtors to "pick the best ones".

Japanese investors were doing the same thing back in the 80's, just before their economy crashed.

12 posted on 07/30/2013 7:53:05 AM PDT by justlurking (tagline removed, as demanded by Admin Moderator)
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To: whitedog57

Investors do not make neighbors.

Good people, caring for their surroundings make neighbors.


13 posted on 07/30/2013 7:56:17 AM PDT by cicero2k
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To: glorgau

Regulatory and tax reform in Michigan as well. Its part of what will have to happen in Detroit as well.


14 posted on 07/30/2013 7:58:38 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: whitedog57

Small gains in small prices aren’t that remarkable.

A $5000 house going to $5500 isn’t the same as $100k house going to $110,000.


15 posted on 07/30/2013 8:22:43 AM PDT by SampleMan (Feral Humans are the refuse of socialism.)
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To: whitedog57

Word up: About 1/3 of Chapter 9 cases end up being dismissed. The process has a critical review point about 30 days in. If Detroit’s petition is rejected, you go right back into the fire with the political process that got them here in the first place. I sure as hell wouldn’t be buying real property there now.


16 posted on 07/30/2013 8:37:10 AM PDT by Wally_Kalbacken
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To: whitedog57

The housing prices are probably soaring because quality single-family houses are becoming an endangered species in some cities, and new HUD regulations will accelerate that trend. HUD intends to basically shut off expansion of suburbs, thereby forcing all new development into existing urban and suburban areas. This means higher density and fewer single family homes.


17 posted on 07/30/2013 8:50:35 AM PDT by Steve_Seattle
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To: whitedog57

Driven up by the Chinese entry into the market. Seen the same thing happen on certain neighborhoods (Bridgeport) in Chicago. Excepting the areas are relativly secure and I’ll bet it’s the same in Detroit.


18 posted on 07/30/2013 10:35:54 AM PDT by mosesdapoet (Serious contribution pause.Please continue onto meaningless venting no one reads.)
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To: rightwingintelligentsia

I think it’s the clean air and clean water they are craving:)


19 posted on 07/31/2013 6:42:38 PM PDT by fudimo
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