Home foreclosures in Michigan continue to fall, but home prices struggling to rise
A new report shows a nearly 30% decline in the number of homes in foreclosure in Michigan in the past year.
“Most of the loans we’ve seen go into foreclosure…tend to be from the legacy book … that is the loans that originated prior to 2009,” says Frank Nothaft with CoreLogic, a California-based company that tracks the housing market.
He says the latest year-over-year numbers show the pipeline of cheap foreclosed homes entering the real estate market is slowing significantly.
But Nothaft says home sale prices are not rising that fast.
“They are still about 10% (to) 15% below where they were prior to the Great Recession,” says Nothaft.
Nothaft expects prices will slowly rise toward pre-Great Recession levels into 2017.