We have your October 2018 Real Estate Market Update for Genesee County. We bring this every single month to you, all the updates for every county in Metro Detroit and I always preface our videos with two things. We have three years of data and we do the month in arrear because we want to see the data. We want to see the entire data set from the entire month. We have all the data now because the month is over so we can go back and dive in, see exactly what’s going on. We have three years of data because if we only showed you 2018 if I showed you this year, it wouldn’t make any sense. You wouldn’t know really what’s going on. You won’t be able to see any patterns. The numbers tell a story, so that way we have this pattern to be able to show you which way things are trending. We talk a lot about technical analysis. For instance, when you’re a stock investor or if you’re in real estate, you’re looking at charts, you have uptrends, you’ve got sideways trends, you’ve got downtrend. So this shows you in numerical form, what kind of trend we’re in and that’s what this is important for. You be the judge, we’ll talk about it at the end, but you’ll be the judge of what kind of trend we’re in, what kind of trend or pattern.
So Genesee County Market Update for October, we have Days On Market, it’s the first one. DOM, whenever you see that anywhere, that just means total days on market on average that a home is on the market until it’s sold. 64 all the way down to 38 in two years. That’s pretty remarkable. So a big dropoff in just time on the market.
Active Homes on the Market
So this is just a one day snapshot. So this is not an overall picture of the month. It was one day at the end of the month, every time, last day of the month and we take the data or I should say the next day of the month after we go back and look at the data, see how many homes were active and this gives you a general sense of what’s going on. And we have a pretty significant shift here. So it does tell us that “Hey, there’s definitely a little bit more homes available right now than there have been previously in past Octobers.”
This ratio actually tells us the month of inventory. It actually tells us we had one and one and then we had two this past month, this past October. Months of inventory is at the rate homes are currently selling, how long would it take to sell every last home? And that really gives us a ratio that shows us, “Hey, what’s the speed of the market, how much inventory is there?” This is kind of a combination of all the statistics basically. Just so you guys have a reference – we go through this a lot, but one to three months is a seller’s market, four to six is an even market and anything seven-plus is a buyer’s market. So that gives you an idea of what kind of a market we are. Still in a seller’s market, there’s still not a ton of inventory out there, but it is starting to show us a little bit a different pattern. We talked about the trend lines. We haven’t seen this, I will say we have not seen as in a while now we’ve been doing the market updates for a number of years now and we have not seen the trend really shift like this and start to change direction. So again, something to keep an eye on as we go along here.
New Homes in the Market
Now, this is more of an accurate picture as to what’s going on over the course of a month. We had more homes come on the month actually this October than we have in the past two Octobers. Inventory is up a little bit that’s why we have a little changing dynamic in the market right now as to what’s going on and you’re going to see this throughout the other counties when you look at the other market updates for other counties.
Price per square foot
Again, this is going up because this is really a month previous when homes are closing, what were the patterns here. This is a general rule of thumb of what’s going on in the county. If you’re looking to get your home price, you’ve got to have a professional analysis done in the home. This is not something that you can just go and use as this is going to price my home. When you take your square footage and you say, my square footage multiplied by that price, it gives you a general ballpark of what these homes are selling for in Genesee County. So again, you need an actual analysis of your home if you’re going to want to get a true price. But this gives you an idea and more importantly is the trendline, which way are things trending, and things have been trending up. So that’s what really why we want that past your data to tell us what’s going on.
This is really kind of your buyer statistic. These are a lot of seller’s statistics here. This is your buyer statistic and this is how many homes have sold actually, how many have closed in that month. And we’re pretty even here or pretty solid. These are homes that have gone pending, accepted offers in August and September and now they’re closing in October. So that gives us an idea and again, it’s pretty similar. The market is a little bit balanced right now honestly. And it’s good to see that because it’s starting to kind of come up from the crazy, crazy seller market we’re in. So a little bit more balanced, which is a good thing. We can all use a little more balanced in our life. Right?
I appreciate you guys more than anything. Let me know if you have any questions on this or any of you in Genesee County or know someone in Genesee County, appreciate you sharing it and letting us know what questions, comments, concerns you have. I appreciate your time, your attention, energy because it’s the most important thing we have. So appreciate you guys. We’ll see you in another market updates.