A report today said ‘urban’ Detroit’s median home sales price was $16,000 last quarter. That’s median, I have a friend who sold several $300,000+ homes during this period. The cash for clunkers program has buoyed Detroit jobs, with GM hiring back workers, tooling shops getting busy again etc.
The truth is that many homes in Detroit simply need to be torn down, and ethanol corn needs to be planted. Many streets are abandoned, dark and scary.
Many of these homes are selling for $100-$1,000, that means that our Government is paying ($4500) 4.5 times more for a ‘clunker’ car than for homes in an American city.
Many of these homes are brick, and the salvage value of the parts equal more than the whole.
Maybe its time for a cash for clunkers version for Detroit housing stock?
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