Michigan’s Economy Encourages Foreclosed Home Investors
Photo by Lumaxart
The economy in Michigan is still in a very painful position. Unemployment rates are hovering at just under 11% and have increased slightly in the last few months. With almost 130,000 new layoffs in July, Michigan residents are not hopeful about the future of the housing market.
Residents also complain of decreased unemployment benefits and changes to the structure of state welfare programs. The only bright side in Michigan economy is a reported 3.8% increase in job growth in the first quarter of this year. Michigan foreclosures rate and increased unemployment rate have created an excellent market for the Michigan foreclosure investor.
The number of foreclosures on the market has not increased at all since July. Most Michigan cities report a lower number of foreclosed homes for sale this month than in recent months.
Detroit foreclosures have decreased by almost 12% between July and August. Of the large cities in Michigan, Grand Rapids has had the largest change in the number of foreclosed homes for sale. Grand Rapids boasts a 20% decrease in foreclosed homes that are presently on the market.
With Warren, Michigan foreclosed home listings decreasing by 13.6364% and Flint foreclosures decreasing by 12.5%, now is the time to invest in Michigan homes. The decreased number of foreclosed homes will offer investors less in the way of choices for home purchases.
Homes in Detroit are ranging between $10,000 and $70,000. With these prices, it is no wonder that this state is fast becoming a foreclosed home investor’s dream. Foreclosure listings in Lansing have also decreased by about 14% in the last month. This steady decrease in listings is expected to continue as the prices for housing in Michigan seem to have bottomed out.
Recent headlines in Michigan proclaim that the state is spending over $14 million dollars to hire a contractor to run the welfare computer system. The state government has argued that there is not enough money in the budget to attract highly-skilled employees who are willing to work outside of private companies. Also in the news, Michigan has cut benefits to unemployed workers by six weeks.
This comes as no surprise to many because of the depressed state of Michigan’s economy. Headlines have also recently declared that over 150 of Michigan’s school systems are on the verge of bankruptcy.
Governor Rick Snyder has proposed budget cuts of almost $500 per student. This budget cut is painful for both teachers and students and might make it impossible for these schools to recover. A positive is that investors continue to find great values in Michigan foreclosures.
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