Quite a large space for such a small price
Home values have plunged so deep this year that homeowners are starting to wonder if there’ll still be enough equity left in their homes. One heavily affected area is the infamous Detroit metro area. The Case-Shiller Home Price Index reports that the city lost 19.2 percent of home values on a YoY basis.
But perhaps, nothing can beat the pathetic state of the Silverdome in Detroit that has gone bankrupt after hosting successful events from football to the Pope’s visit. Maintenance costs have shot extremely high, leaving the once home of the Detroit Pistons to be auctioned off for only $583,000. It’s a figure that has been protested by local residents these past months. Last week, their request to halt the sale to Canadian company Triple Properties Inc. was dropped by a judge and things are only going to get even better for the developer. It is planning to promote soccer games in the city once it acquires the 80,300-seat property.
But the residents aren’t giving up the fight just yet. There’s no white flag being raised anywhere Detroit this time. The Detroit News writes, “Oakland County Commissioner Mattie McKinney Hatchett, D-Pontiac, a leader of the group, plans to talk with its attorney about their next legal step and encouraged residents to contact elected officials—including Gov. Jennifer Granholm, who appointed Fred Leeb as emergency financial manager to straighten out the city’s fiscal crisis.”
But you may be wondering why these citizens are fighting so hard to stop the acquisition. It’s not because they want to save the sports facility for some cultural reason. They’re actually more concerned with their homes’ values. The report adds, “‘A sale at this price is going to affect the value of every piece of property in Pontiac—how can that not be harmful?’ said one Pontiac citizen, Curtis Henderson.”
We tend to agree with Henderson’s comments. A massive price reduction in what is only one percent of today’s equivalent price when the Silverdome was constructed in 1975 can indeed hurt the city’s property values. But from the beginning when we were following the news, it comes as no surprise that the judge has arrived at this decision. We knew right away that the citizens’ reasons for blocking the sale were too weak. They just can’t fight off a legal auction.
All that they have to do now is to realize that their beloved domed stadium is roughly half the value of a 2BR estate in East Jordan .