April 2019 Real Estate Market Update – Wayne County, Michigan
We have your Wayne County real estate market update for April 2019 let’s jump right into this thing.
So I always preface every single video or market updates with a couple of things. We get these questions all the time and it’s why are doing a month previously and then why do you have three years of data? Very simply it’s because we have all the data from April 2019 so it’s wrapped up, it’s good. We got all that hot-off-the-press. That’s it. Just like the jobs data in the economic data from the government, first week or two of the new month. We get the data from the previous month and then we have three years of data. That way we can see the pattern. The most important part of this is seeing the pattern. And again, in investing they always say the trend is your friend, right? So we want to be able to see what’s going on. If I just gave you 2019 of April, it wouldn’t make any sense to you. So you want to be able to compare it to the last couple of Aprils so that we can see what’s going on. So let’s jump right into this.
Days on market
Average days on the market, there are 45 days on the market on average in 201. In 2018 there are 43 days on average, jumped up all the way to 53 days on average in April of 2019. So, pretty crazy. We’ve seen this across the board in Metro Detroit, everything trending more towards a balanced market and not as steep of a seller’s market. So home as sitting longer. You’re gonna see here throughout the numbers it’s because there’s more inventory out there now than there was in the last couple of Aprils.
Active homes in the market
There are 4,268 homes two years ago. So active homes are one day snapshot and we take that data, it’s from that day. How many active homes are there at that current moment? So there’s 4,268 in 2017, 3,819 in 2018 and then all the way up to 4,534 this past April. So again, this stat is very important to see the trend more than that actual number. So which ways are things trending? Again it’s concurring with all the rest of the data that there is more inventory out there. That’s why you’re seeing the rest of the numbers play out the way they are.
Months of inventory
We have to in 2017, two months last year and then three months just under three months this year actually. So again, another uptick in one of our stats and what MOI, means the month of inventory is at the rate homes are selling, how long would it take to sell every last home with no new homes going in the market. So it’s a very quick snapshot to be able to give you exactly what’s going on in the market. So you can see what it is and what’s happening. So just you give you guys every time here, one to three months is a seller’s market, four to six is a balanced market and then seven-plus is a buyer’s market. What that means is when you know it’s one to three, that means that there’s not a lot of inventory and sellers are really making out. Four to six means everyone’s kind of getting along. And then seven-plus months of inventory is there’s a recession, depression, things like that and there are tons of homes available. Sellers are getting hammered and buyers are having a field day. That’s what that means. That gives you an idea of where we’re at and where the market is trending.
New homes in the market
New homes, this is the newly listed homes in that month. So this is more of a broad snapshot of the entire month, unlike active. So new homes, 2,084 two years ago, up last year again, 3,065 and up again this year to 3,283 homes. You’re seeing more homes being listed than we were previously, which again is a good thing trending toward that balanced market.
Price per square foot
This is another a lagging indicator, trailing indicator. However, it does show a trend upward of house prices rising. Seventy-seven two years ago, 8$8 last year, and then $92 a square foot this year on average in Wayne County. So again, this is an average, it’s not a hard and fast rule for your house. So if you need a market valuation of your home, you’ve got to see a professional. You’ve got to have someone on our team, an appraiser come and value your home. This gives you a market, county-wide number to basically see a trend, see which way the market’s moving in your county. But also to just give you a general idea of what your home’s worth. Taking that square footage, multiplying it by $92 a square foot. You get about what your home is worth. But again, you have to have a professional come look at your home if you are serious about it.
Sold
The number of homes sold, closed on if you will in that month. So two years ago there were 1,897. Last year there were 1,699, and then this past year there are 1,774. So again, hasn’t vary too much, just kind of stayed somewhat even, an average of probably around 1800 basically over the last couple years which makes sense. This number doesn’t change too much unless there’s a huge recession or something like that. This is our buyers’ statistic really. So it doesn’t change too much unless there’s something catastrophic in the market. However, it will be interesting now that we have more inventory coming out over the next few months to see what that sold number looks like.
So that’s it, guys for Wayne County April 2019. That’s the market update. I appreciate you guys, your time, your attention more than anything. If you’re on the podcast or if you’re on Facebook or YouTube @legacygroupMI, those channels there. Put your comments, questions, concerns, everything in the chat there that way we can answer them and help everyone out at once. So I appreciate you guys your time and your energy spending with us. I’m just humbled and honored to have it. It’s the most important asset we have. So thanks, guys. We’ll see in the next one.