While Detroit‘s housing market may have looked like a dismal mess in previous years, there now seems to be a light at the end of the tunnel. Home prices, spurred largely by the homebuyer’s tax credit as well as home remodels, are showing a steady increase. For a city hit hard by the recession, any change is good change.
Christopher Blake, owner of Mutschler Kitchens, Inc, and The Blake Co. in Grosse Pointe Farms has received a much-needed boost in business over the last four months. As people attempt to invest more in the homes they already have, they’re turning to him for various remodeling jobs. For Blake, May was the best month his companies have seen in nearly two years.
One of Christopher Blake’s kitchen remodels
May also saw an increase in non-foreclosure home sales on top of an increase in the median home price. The median now sits at $75,000, a whopping 63-percent increase from 2009. In addition, there are now fewer homes on the market, and regular-priced homes are able to compete with foreclosed ones.
On the downside, foreclosed properties that have been temporarily kept off the market by banks threaten to take over the market once again in the coming months.
While the news may not all be good, Blake and other Detroit contractors are certainly grateful for the increase in business. At this point, only time will tell which direction the Detroit housing market will take.