April 2019 Real Estate Market Update – Oakland County, Michigan
We have your Oakland County real estate market update for April 2019. Let's jump right into this thing.
So we preface every single one of these market update videos, a couple of things. We get these questions all the time. Why do we have them on previously? And then also why do we have three years of data? Very simply it's because we have the fresh data from the past month or the month is closed out. Just like getting the job report from the government. We have all the data now so we can give it to you in the first or second week of the new month. So that's why we have that. Then three years of data. We want to be able to see the trend. If I just showed you guys one year this past April, it wouldn't make any sense to you. So the trend is your friend remember that? And that's exactly why we have three of the data so you can see exactly what's going on. So let's jump right into this.
Days on market
Forty-six two years ago, 46 last year and 54 this year in April. So again, we're seeing this throughout Metro Detroit. We're seeing an uptake a little bit, a lean towards more of a balanced market and not as steep of a seller's market. So it means there's more homes in the market. That's why homes are sitting on the market a little bit longer.
Active homes in the market
We had 4,199 two years ago down to 3,881 last year, and then back all the way up to a high we haven't seen in a while to 4,408 homes. And this is a one day snapshot. So when we take that data, how many active homes are at that moment. So that's why that trend is important to see that.
Months of inventory
This is two in 2017, two months of inventory in 2018 and three months of inventory. Just below actually rounded up. These are rounded numbers, but three months of inventory in April 2019. So months of inventory means it's a very quick snapshot at the markets. You can see what's going on very quickly. And what it stands for is how long it take for every last home to sell on the market if no new homes came on the market. Just to give you an idea, I always give you guys this every month, but one to three months is a seller's market. Four to six months is a balanced market, seven-plus is a buyer's market. Obviously a seller's market. Sellers are making out, there's not a lot of inventory. They're getting high prices, balanced market, everyone's kind of winning in a buyer's market and you have like an 2008-2010 recession there. You've got really high months of inventory. That means there's tons of homes to choose from and sellers are at the mercy of buyers.
New homes in the market
No active listings that were listed in that month. So 2017 we have 3,082, 2018 we had 3,264 and then this past April, we have 3,447. So again, another uptick. Another indicator showing us that things are trending towards a balanced market, more towards the four to six months of inventory.
Price per square foot
One hundred seventeen-a square foot two years ago, $124 last year and $128 this year. So again, prices are rising. Prices generally are lagging indicators. They move slower than say some of these inventory numbers. And that's why you see some of these other numbers trending up towards a balanced market. But then prices are still going up. So we'll see that as time goes on, that may come down. So keep an eye on that. If you need a valuation in your home, you have to have a professional come to do it. You have to have an appraiser, someone on our team come do it for you. This is just a general guide for the market in your county. So it is countywide. If you took that data and multiplied that $128 per square foot by your square footage, it would give you approximately what your home is worth. And more importantly, as I said in the beginning, this is for the trend, you want to see the trends. The market is trending up in that county, which is huge in Oakland.
So this is the number of closings in the month, 1,998 two years ago down to 1,798, then again down a little bit to 1706. And that's because, this is a trailing indicator or a lagging indicator as well. The month previous didn't have a ton of inventory, so we're seeing last homes being closed this month, but we'll see what happens going forward. Since there is more inventory here, we're going to see what happens going forward and how that affects our sold stat.
So I appreciate you guys more than anything. That is it for the old county update for April 2019. I appreciate it you guys, your time, your energy. It's the most important thing we have. If you have questions, comments, concerns, you can go on the podcast. Go to @legacygroupMI, on our YouTube or Facebook. Go check out there. Go put questions, comments, concerns there, and we will get that answered for you. And again, just appreciate your time and your energy, it's the most important asset we have. So appreciate you guys weren't anything. And we'll see on the next one.