December 2021 Real Estate Market – Oakland County, Michigan

Your Mitten Made properties. We have your Oakland county, 2021, December, 2021 real estate market update for you. Appreciate the patience. The last handful of months have been a little bit crazy to say the least. And, we’ve had, you know, some personal things going on, some team things going on. And, the last handful of months, we have not been able to provide the value and the content we normally are accustomed to. And so we appreciate your patience there. We have your market updates here going forward, and we’re going through some transition periods. So I appreciate you. And, we always preface our market updates with a couple things here of the last five, six years we’ve been doing these. We always are saying at the beginning of these videos, we have three years of data, cuz the trend is your friend. You wanna be able to see the data and see what’s happening because it was just one year data wouldn’t make any sense. And then we had the month of rears, we’re looking at December, 2021, cuz all the data is now done, signed and sealed and we’re good to share it obviously. And it’s all collected.

Days on market

So let’s jump right into this days days on market is a number of days. Obviously it takes to sell the home on average year 56 days, two years ago, 43, ended to 2020. And the end of last year is December 32. So, you know, huge decreases obviously in this seller’s market, we find ourselves in which I’ll show you a little more data here, which is just incredible data for December, which is, you know, you think generally one of the slower times a month, December, January, February, slowest month of the real estate calendar for Michigan and boy, it looks like, you know, 2015, 2016, June and July months active listings.

Active number of homes in the market

This is a one day data sample. So on that day, how many active listings were there? 4526, 2 years ago, 2,646, end of 2020, and then 2012 this December. So even less is just, it really is incredible what’s happening to not market. And I, well, I hate to say what turns these things around, but one of them easy things would be building more houses, inflation coming down, things like that. But , other in black Swan events or huge, you know, bubble collapses, credit, bubble collapses, things like that, bond market, you know, collapse. I don’t know what changes this.

Month of inventory

It is, you know, the video for a different time, but there’s some really remarkable things going on that can be very fascinating going forward to see what happens here to the market, months of inventory, just under three months, two years ago, 1.3 last year, 1.17 this year.

So that’s at, you know, if that, um, just even context one to three months is a seller’s my market four to six is a balanced market and seven plus months is a buyer market. So you can see, we are steeply into seller market territory and it’s, it really is a, uh, fascinating time to be a, a buyer real real estate buyer and real estate seller, obviously a real estate agent real estate investor, real estate lender. It’s it very, uh, tumultuous time, um, posters constantly moving. So you have to be very nimble, very agile in, in this market. And um, and this is again, just to use some context as well. This is a very quick ratio, very nice ratio, simple ratio to see what kind of market are we in because what this basically stands for months of inventory is at the, the rate homes are selling.

How long would it take to sell every last home if no new homes came onto the market? So that just gives you some context there as to what’s going on with that new listing.

New homes in the market

So this is actually the number of new listings that actually did get listed that month over the course of the entire month, unlike the active listings. So 1,519, two years ago, 1,561 last year and, and 2020, and then end of 2021, we had 1393. So again, we’ve seen seeing a decline in the just number of homes in the market going forward as well. So which again, doesn’t bode very well. We need more inventory. We need more people building things like that. But again, when costs are sky high and we have transfer payments going to everybody inflation going through the roof, supply chain stuff, going on, moving goal, post interest rates.

Price per square foot

It’s very hard. It’s very hard to make a profit. If you’re a home builder, if you’re someone trying to stay into in say in business, if you, if you aren’t making a profit, you’re not able to stay in business very long, which leads to less housing, which leads to higher pricing because there’s less houses available. So it’s, we are in some incredible times, but again, videos for different days, price square foot. It’s $127, two years ago, $154 last year, $173 this year. And then again, this is a countywide number, but look at that trend going up. That’s remarkable if you take that $173 and you multiply it by your square footage, that’ll give you your approximate value. But again, if you, if you want an actual evaluation, you have to have someone on our team, an appraiser, an actual professional come look at your house, look at the neighborhood, see what’s going on specifically to you to get you an accurate evaluation because that’s, you know, again, the trend is most important thing there we want, we like that trend that trend’s going out

Sold

So people have a lot more equity and is how are you managing your debts? How are you? Good debts are neither good, nor bad necessarily. It’s just how you use them. So, how are you managing that debt? How are you managing your equity? Sold listings is 1,572, sold listings. And this is really the buyers. I’m a lot of people buying, signing on a home at the end of the day at a closing table, 1572, 2 years ago, 2028 last year, and then 1,717 this past year. So again, it’s a little bit of an increase from 2019, but still down from last year. So that stayed kind of stable. That’s somewhat usual. We, we don’t see that number fluctuate too, too much unless there’s Black Swan events like we saw in the last year or two.

Appreciate you guys sticking with us and we’re looking forward to providing more content before you guys going forward. It’s been a crazy, crazy last couple years obviously, but we are so, so excited for what’s coming. And just the value we are looking to provide everyone going forward, whether it’s helping buyers and sellers whether it’s, you know, helping our lenders, helping our vendors, helping our contractors. We are incredibly, incredibly excited to help and serve the people around us and to help people build wealth really at the end of the day, build wealth, cause wealth really gives you time and gives you freedom. That’s what it gives you. And, that’s my truly, my biggest passion in life. So I appreciate you. And, we look forward to seeing on the next one.