Foreclosure Properties for Sale in Michigan Made Up 37%

Foreclosure properties for sale accounted for 37 percent of total home sales in Michigan in the first three months this year, based on a foreclosure sale report released this week by a major real estate organization.

These Michigan foreclosures were also sold at prices lower by an average of 31 percent than the prices of nondistressed properties. Searching and buying distressed homes for sale in Michigan in the first months of this year was easier as there were nearly 46,000 units of distressed properties in the first quarter, higher by 38 percent than the total a year earlier and by 11 percent than the total in the previous quarter.

Of these distressed units, more than 34 percent or nearly 16,000 units were posted for public property auctions for sale and almost 19,000 units were already bank owned units.

In Western Michigan, foreclosure properties for sale also made up a big portion of total house sales, and average prices paid were lower by 21 to 39 percent than average nonforeclosure prices.

In Kent County, foreclosures comprised 20 percent of total sales and the average price was lower by 29 percent than conventional prices. In Ottawa, foreclosures accounted for one-fourth of total house sales, with the average price lower by 26 percent. Muskegon posted a staggering 44 percent of foreclosure sales percentage, with the average price lower by 30 percent. In Kalamazoo, distressed units made up one-fourth of all house sales, with the average price lower by 39 percent.

Analysts said first time home buyers and investors accounted for a substantial portion of buyers during the quarter, as they took advantage of the federal tax credits, low house prices and low mortgage rates.

In the first five months this year, Michigan posted a total of 85,227 foreclosure postings, and out of these, a total of 32,865 units or 38.6 percent were bank owned foreclosure properties for sale.

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