The sprawling mansions in neighborhoods like Palmer Woods, Boston-Edison and Indian Village are stark reminders of the wealth the city once had.
Now, there's some good news. The Detroit Free Press reports that the sale price of at least some of those homes in Detroit are once again rising.
"Now after years of collapsing prices, foreclosure sales and other indignities, the resale market for large houses within Detroit’s most elite and historic residential neighborhoods is finally showing signs of rebound," writes JC Reindl, the Free Press business reporter. He continues:
"The rebound so far appears most distinct in the tight-knit neighborhoods of Indian Village, Palmer Woods and Sherwood Forest, which have active neighborhood associations and their own security patrols. Real estate agents say the momentum is just beginning to spread to the University District and Grandmont Rosedale area, but less so to the large and harder-hit Boston-Edison Historic District.
“Any nearly decent home is selling very quickly and getting full price right now,” said local Realtor Stephen Williams of Coldwell Banker Weir Manuel."
The sales of upper-market suburban homes set a record last year for the number of $1-million-plus sales, Reindl writes, making a hearty comeback from the housing market crash not so long ago. Many homes in Detroit would sell for just as much if in the suburbs. That being said, they''re still making modest price gains.
The Freep reports:
The incoming residents include not only younger couples and empty-nesters, but also families with school-age children who are putting the money that they saved by buying Detroit real estate toward private school tuition.
In interviews, these families often mention the active clubs and social calendars of their new neighborhood associations as a surprise benefit that they didn’t have in the suburbs. Depending on the neighborhood, the offerings can include women’s and men’s gardening clubs, holiday tours, annual yard sales and monthly concerts featuring local musicians inside residents’ homes.
Mayor Duggan bought a "five-bedroom Greek Revival-style house on Strathcona Drive," in Palmer Woods, in 2012 for $428,000. The house, equipped with an outdoor swimming pool, had previously been bought out of foreclosure in 2009 for $168,000. When the mayor took office, and with it rent-free residence at the Manoogian Mansion, he sold the Palmer Woods home for $507,500, in January. -- Danny Fenster
