MichiganRadio

Detroit Real Estate Market Weak (and getting weaker?) ANN ARBOR, MI (Michigan Radio) -

Bad news for Detroit's struggling housing market. A new report ranks Detroit as the 'Lowest Performing' real estate market in the country.

Its not news that Detroit real estate has been on a downward spiral in recent years. Even as housing in most of the country has been rebounding this Spring Detroit home sales have been weak.

Alex Villacorta with Clear Capital says Detroit's real estate market may face a rocky road in the second half of the year, especially if the percentage of 'bank-owned' homes on the market begins to rise.

"If there is indeed another wave of 'shadow inventory' or another wave of foreclosures coming through the pipeline," says Villacorta, "then there's a very real risk that the prices could see new, fresh lows."

Villacorta says Detroit home sales continued to struggle last month even as a federal tax credit boosted sales around the country. And he notes the deadline to qualify for that tax credit has passed. © Copyright 2012, Michigan Radio