Bloomberg Businessweek

Excerpt From Original Article

3. Michigan

Biggest home-price increase projected in 2014: Detroit-Livonia-Dearborn metro

Forecast 4-year price increase: 33.1%
Current median price: $51,000
Prices to reach trough in: 2011 Q2
Median family income: $54,400
Population: 1.92 million

Since reaching a peak in 2006, home prices in the Detroit area have fallen 60.5%, according to the Fiserv Case-Shiller Indexes. As homes have become more affordable — the median home price in Detroit is lower than the median family income — demand is expected to pick up. Prices are forecast to jump 33.1% over the next four years. George Moma, a broker with Century 21 Dupont Realtors, says the growing prevalence of short sales over foreclosures will help drive up the median price in the Detroit metro area. He adds that the area is attracting interest among international investors from the U.K., Dubai, Russia, India, Ireland and France.

Index used to calculate historical home price changes: Case-Shiller


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