Detroit’s housing market was one of the most severely attacked during the financial crisis, leaving a wasteland of foreclosed and abandoned homes.
But the struggling city received some good news on Friday after a federal judge approved Detroit’s bankruptcy plan, an article in The Wall Street Journal said.
The article noted that the city has continuously been plagued with having one of the worst housing markets. The city has seen its median resale price decline by 67% from $163,800 in 2005 to its nadir of $53,800 in 2011.
Technically, Detroit qualifies as being in a “recovery mode,” said Jonathan Smoke, chief economist at Move Inc.
“Detroit’s problems are really deep,” said Nela Richardson, chief economist of brokerage Redfin. “Even though the bankruptcy filing is a step forward, it’s going to take a long time for them to recover. The population has been halved, and you’re still seeing double-digit unemployment and a lot of vacant homes.”