It is the first time this has happened in seventeen years. The city Monday announced that on average house prices in Detroit have increased. City leaders say they hope it is a sign the city’s revitalization continues.
The housing value changes are more or less in different parts of the city, but overall increased about 6%.
WXYZ spoke to Lamonte Fisher who we found digging out from the snow at the home he has owned for three years in Detroit’s Cornerstone Village Neighorhood on the eastside. It is one of the neighborhoods that appears to have dug out from the recession, and increased in value the most over the last year. Houses are assessing between 15 and 22% higher than last year. When houses go on the market, Fisher says he noticed they are selling.
“I noticed a house a few blocks down. It was for sale for 3 weeks and it sold,” said Fisher.
“We do believe we hit rock bottom and are now on the way back up,” said John Hiill, Detroit’s Chief Financial Officer.
Hill says he hopes this is a turning point for a city that has suffered a massive increase in home values over the years. For example in 2008 the cumulative value of residential properties in the city was $8.8 billion. It decreased year after year, hitting $2.8 billion last year. This year is the first time in 17 years it has increased to about $3 billion.
“It is not just the normal neighborhoods, such as Palmer Woods, Sherwood Forest, East English Village. Neighborhoods that were on the cusp a few years ago are starting to rebound,” said Alvin Horhn, Detroit’s Chief Assessor.
The increase in values is not expected to impact the city’s budget this year, but could in the coming years. Tax increases are capped at about 1% for houses that remain with the same owner with no big changes to the structure.
Notices of proposed assessments have been sent out to property owners. If you want to appeal your assessment, you have until February 15.