Homes for sale in Detroit are finding ready buyers, as the property market picks up, according to realtors in the area.
Real estate in Detroit is increasing in value: The capital of America’s car industry for decades; Detroit is, according to the latest House Predictor forecasts, number one in housing market growth in the US, with a remarkable increase in prices of 21.5% in 2010.
Amongst those companies now marketing properties, in a city which was once a byword for real estate disasters, is Experience International. The managing director, Stephen Warboys said; “Since launching this unique investment opportunity in 2009, response has been overwhelming, with over 250 units purchased and clients are already benefitting from rental income and yields of 21% per annum.”
Growth in the industrial and service sectors have seen a demand for homes for rent in Detroit. There is currently a shortfall of some 30,000 rental homes in the Metro Detroit area and shrewd buy-to-let investors are purchasing refurbished family homes in the most sought after locations at prices as little as £32,000, up to 40% below market value.
In 2010 a three bedroom, two bathroom, 900 square foot house could be bought in Detroit for $24,900, according to realtors Trulia, for instance.
Strong Employment Prospects Means More Demand for Homes in Detroit
After years of decline; exposed and caricatured by satirist and filmmaker Michael Moore; Detroit is finally seeing growth with organisations such as the Detroit Economic Growth Corporation working to attract new business and working capital into the city and its surrounding area.
The US automobile industry, which has long played a key role in the ‘Motor City’ of Detroit’s economic recovery, is also showing strong growth. The Ford Motor Co., for example, posted a $2.1 billion profit for the first quarter of 2010, continuing the run of four straight quarterly profits since 2005.
In addition to this, as private and government investment flows in, demand for affordable accommodation and prospects for future employment look strong. Amongst recent projects is a proposal to construct the $5.3 billion Detroit River International Crossing project. This new project will connect Detroit to Windsor, Ontario, on the Canadian side. It is forecast to create 10,000 construction jobs and more than 221,000 jobs in Michigan, many of which will go to outside workers and skilled craftspeople from outside the area who will be looking for homes to rent in Detroit.
Real Estate in Detroit Benefiting from Automobile Industry Revival
The improvement in the motor industry and the growth of many other industries in and around Detroit was mentioned by President Obama. He recently mentioned that “the industry is recovering at a pace few thought possible”. In addition to Ford, Chrysler has announced an operating profit for Q1 2010, and it is reported that General Motors has created over 45,000 jobs with an additional 1,200 expected to be saved this year by the construction of a new vehicle in a factory just north of Detroit.
Those considering investing in Detroit and capitalising on the demand for rental accommodation will be interested to know that three bedroom family homes are available at great prices; with ongoing tenant management and the first two years of maintenance costs paid, making this a truly hands free property investment.
“When purchasing in Detroit it is essential to select the right properties in the right locations,” said Steve Warboys. “We work with expert local partners based on the ground in Detroit, who are able to identify for our clients the premium roads and suburbs in which to buy and can gain access to the most desirable properties as soon as they become available.”
Buying property is always a risk, but with real estate in Detroit increasing in price, there are indications that property in Detroit will find ready buyers.