SOURCE: FNC Inc.

FNC Inc.

December 17, 2010 10:52 ET

FNC Study: Artists Boost Home Prices in Desolate Downtowns

In Detroit, the Urban Legend Is Fact -- and We Have a Chart and Records to Prove It

OXFORD, MS--(Marketwire - December 17, 2010) - Can low-income artists really revive dying downtown real estate? The answer in three Detroit zip codes is "YES."

FNC senior statistical analyst Sankar Bokka examined a neighborhood near downtown Detroit where artists have transformed crumbling buildings into homes and small businesses. Bokka studied price trends in the North Corktown neighborhood, where a community development organization sold discounted homes to artists, musicians and members of the creative community. He also tracked two zip codes along the Cass Corridor which has attracted artists, musicians and cool bars, despite high rates of drug and prostitution crimes.

Bokka's chart shows home prices inflated rapidly along with the real estate bubble, then plunged when the bubble burst. But prices bottomed out in August 2009 and are now trending higher. The small population makes the ups and downs more jagged since a single home sale has a bigger impact. But housing prices mostly stayed above their purchase value and are recovering steadily.

For his research, Bokka used FNC's Residential Price Index™, which contains 78 million more records than other residential price indexes and can calculate across the spectrum -- micro-trends in a few zip codes or trends sweeping across cities.

"Sometimes statistics can capture the effect something as ephemeral as hope or determination has on a neighborhood," said Bob Dorsey, FNC's Chief Data and Analytics Officer. "Our holiday wish for Detroit is that home prices across the city will move up as part of a prosperous new year."

About FNC Inc.
FNC pioneered real estate collateral information technology. Since 1999, FNC has offered solutions that automate appraisal ordering, tracking, documentation and review for lender compliance with OCC, OTS, Federal Reserve, FDIC, and other regulations. FNC's platforms are in production at 7 of the 10 largest U.S. mortgage lenders and provide value to both large and small lender clients with reduced costs and more efficient loan processing. With its collateral management platforms and collateral-focused analytics, FNC provides insight into the property backing a loan from origination to capital markets. Visit FNC online at www.fncinc.com.

Contact Information

  • To arrange an interview with any of FNC's mortgage industry experts, contact:

    Bill Dabney
    FNC Public Relations Manager
    Phone 662/236.8304
    Email Contact

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