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Michigan's one of the hardest-hit real estate markets in the country. While different databases yield different results, Yahoo! Real Estate reports 39,169 foreclosures in the state selling at a median price of a mere $96,999. That's not a studio or loft, that's a moderately-sized, single-family residence. Some areas are worse off than others, but overall it's a hard-hit market. The story of Michigan foreclosures and the overall real estate market is bleak for many homeowners, but investors may want to take advantage because there are ways in which to make money. The realignment of the auto industry and other new market pressures from the loss of manufacturing jobs in this state have led to double-digit job losses and a crash that is comparable to the worst periods of U.S. economic history. In fact, nobody has seen such real estate depreciation in Michigan since the Great Depression. One of the cities, Grand Rapids has been called one of the top 25 worst housing markets in the country, and it's hard to argue with data that projects homes will fall in price by another nine percent this year. Detroit's market is in a similar state, with projections that housing prices will fall nearly 20 percent. Some places are clearly harder-hit than others. Many regions throughout the Upper Peninsula are experiencing a rate of foreclosure of only one out of every 24,747. But the situation is a different in the manufacturing regions. RealtyTrac® counts properties in all stages of foreclosure (pre-foreclosure, auction, bank-owned, etc.). Their breakdown of Michigan foreclosures in Oakland County shows 20,531 homes in some stage of foreclosure; that represents one out of every 287 homes. Nearby Macomb County shows 11,785 foreclosures—one out of every 308 overall. And Wayne County, Michigan foreclosures are the highest in the state with a whopping 48,929 foreclosures, which means one out of every 176 homes. Now that the market is declining—almost as fast as it once rose during the boom—investors are the one group that are truly excited and there's been a bit of a real estate gold rush in Michigan. The market is still declining, foreclosures are everywhere, and there is still a lot of money to be made. Here's an area where creative financing options are actually being encouraged by local officials. It's a "buyer's market," but for an investor to make money there need to be incentives for the buyer that will buy from them. So make the most of creative financing and programs offered through the Housing and Urban Development (HUD) in order to take advantage of as many opportunities as possible.
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