Depression Hits Detroit: Average home price $18,513 - Unemployment rate 21% , page 1

Depression Hits Detroit: Average home price $18,513 - Unemployment rate 21%

www.blacklistednews.com

The Great Depression has reached Detroit. The average price of a home is now $18,513 and unemployment has reached 21%, and it’s expected to get worse. Detroit is facing a crisis of epic proportions that officially puts Detroit statistically (and real term) on par with the great depression. Many readers of Tribble Ad Agency are advertising centric.. and due to the rash of layoffs within all Detroit Advertising firms has put the city on the map for the wrong reasons.

It has become the center of all that is wrong with America… and nothing of what is right.

For example, the crime rate has fallen…. because of lack of targets within the city. Meaning there is nothing left to steal. In fact, even the criminals don’t want to leave jail.
Heard confirmed that some offenders, notably those without homes of their own, were now expressing reluctance to leave jail when their sentences were done.

Home values have plummeted to levels not seen in 1/2 a century… and the 21% unemployment has in some cases been projected to double within 12 months if the auto industry totally collapses.

To make matters even worse, Detroit has superseded New Orleans as the “worst city” in America…. but New Orleans had a Hurricane they could assign blame to… Detroit has no such natural disaster crutch.

“It’s a depression — not a recession,” McDuell said, with the authority of someone who has lived through both. “It will get worse before it gets better.”

It’s a man-made disaster.

Regarding a local food bank in Detroit that has seen record numbers of individuals entering the system:

“Many people are first-timers — they have no idea how to navigate the system, how to qualify for food stamps,” Wells said. “Last year, some were donors — now they’re clients.”

In short, last year they donated money into the system… now they are feeding from it because they themselves are in hard financial times.

Detroit needs a miracle, the chances of it showing a resurgence is slim to none in the current economic outlook.

(visit the link for the full news article)

I was shocked to hear that things were this bad already. I can't imagine home prices being so low. You can't even buy a decent used mobile home for $18,513 in just about most places. I fear that all the economic hardships they are encountering will be slamming into the rest of the economy real soon. I keep hearing that the SHTF in late January (when the 4th Quarter Reports come in) and by February 2009 we will be in a full-blown depression. Take a hard look at what is happening here and know its time to make whatever preparations you can to brace yourself for surviving the coming hard times. What is happening in Detroit is a preview folks.

www.blacklistednews.com
(visit the link for the full news article)

[edit on 12/25/2008 by sad_eyed_lady]

reply to post by dreab_boy

---

It's either laugh or cry.

One way or the other their going to get ya.

Detroit has been on a downhill slope for a long time.

Even the Detroit Lions show similarities of Detroit's decline over many years.

As a manufacturing powerhouse in the first half of the 20th century, Detroit was largely responsible for turning Michigan into one of the wealthiest states in the country.

Likewise, its decline over the past 30 years has dragged down real incomes of most Michigan residents and burdened taxpayers from Monroe to Menominee.

www.mlive.com...

What I would like to find out is what planning has Detroit made in the past that would help them survive in the future? Seems to me that they saw this train wreck coming but did very little to avoid the huge impact it has caused.

reply to post by jam321

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your pretty spot on there, Detroit has been in decline LONG before September. However, single family homes in NC are still averaging the 300K range, which is WAY too much for the crappy cracker jack boxes that they are. Go take a look at one of those 19,000 dollar homes and it will quickly become apparent of why they are so cheap. dilapidation does not begin to describe it. Detroits decline has been happening over DECADES.

yeah, they should have seen it coming, but this kind of "snuck up" on alot of us.

What makes me spitting mad is that the banks closed, which killed their ablity to function. Its like they are the kids in the back of the class that are like the third in line to say oh yeah, my dog ate my homework. but in their defense, they have been fed FALSE/BLOATED bank reports for years.

if you put false data in a model, your results will become VERY skewed.



[edit on 26-12-2008 by drsmooth23]

Sorry to burst the doom bubble, but $19,000 average price in Detroit! hahahah, wait, edited to totally discredit my previous post, i gues SHTF for real, im having hard time grasping this, and thinking about setting up an e-business and moving to detroit, holy crap

www.trulia.com...

and i guess there are a ton of small houses like that for 9-15k! i dont believe it, this is scary.


www.trulia.com...

- click on average sales price, most are in the 200,000 range - edit to add in some areas, but alot of areas because of forclosure have average list price of 59k then sales price of 15k, WOW

www.housingtracker.net...

unemployment looks a little off though

www.bls.gov...

edit to say - maybe yall should start shopping for us properties, this is un-real, im having a hard time understanding how the us can deal with this...



[edit on 26-12-2008 by icu20]

ps, want to do some fact checking? just try and use this mortgage calculator to find out the mortage on a 20,000 house with 10% (2,000) down - loan amount of 18k at 7% interest

MONTHLY MORTGAGE PAYMENT IS $146

www.mortgagecalculator.org...

LOL

reply to post by icu20

---

Lots of unemployed people are not included in government unemployment reports - so I suspect said 21% is probably right and it won't include the underemployed. The only numbers the government will include are those registered as unemployed and being paid some form of social security benefit.

reply to post by sad_eyed_lady

---

well.... that's one way to look at things....
this article from 'SeekingAlpha' has a different conclusion than your OP site

seekingalpha.com...

According to the Michigan Association of Realtors, home sales YTD (through October) in Michigan are up by +1.02% compared to last year, from 85,270 houses sold through October 2007 to 86,138 YTD this year. The YTD average home price in Michigan fell by -15%, from $141,681 last year to $120,418 this year.


For the city of Detroit, home sales are up by a whopping 47% from 6,411 houses YTD in 2007 to 9,420 this year, as the average YTD price fell by 54% to $18,513 this year from $40,011 in 2007 (see chart above).


DETROIT NEWS -- Metro Detroit home sales rose again for the eleventh straight month, figures released Thursday show, though prices have continued a precipitous slide. According to data released by Realcomp, the Farmington Hills-based multiple listing service, November home sales increased 20.5% throughout the metro area compared to the same month last year; 4,644 homes sold this November, up from 3,853 sold in the same month last year.

Average prices for the metro area declined 45.4% to $62,800; last November, the average price was $115,000.


MP: The real estate market in Michigan is apparently in a major recovery process as falling home prices are stimulating home sales in Detroit and around the state. If it can happen in Michigan, it can happen any where.

HT: Bob Wright.

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Related Articles

Analysts Don't Know Squat Dec 26, 2008

If you notice the Detroit City houses are costing less & selling more

Notice too the price differences of Detroit City VS the Detroit Metro Area,
and both areas are selling better this year...(re-read the last paragraph about being in the midst of a 'recovery' in home sales)



Detroit & Detroit Metro also has the ForeignTradeZone and has Robotics makers & programers for those robotics...
theres whats left of the Big 3, which will be transforming their business-manufacturing model, there's also 'Motown' the record & entertainment industry giant located there.

one can 'see' opportunity, (in the culturally diverse Detroit)
or one can 'see' a deteriorating-&-desolate landscape




In Conclusion: that's one reason i left the [Related Article]
"Analysts Don't Know Squat" , in the Quote Box


thanks,

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