August 2018 Real Estate Market Update – Oakland County, Michigan
We have your Oakland County August 2018 Real Estate Market Update, so let’s jump right into this. I preface every video with these two things: we do the month in arrears so people ask a lot of times, “Why are you doing a month previous?” Because we have all the data. We’ve got all the data. The month was finalized, closed up, we had everything. The hottest data, the fresh-off-the-press for you. That way you can see that and make decisions for you and your family. We also do three years of data. If I just showed you this year’s data right here, it wouldn’t make any sense to you. It’d be in a vacuum. You wouldn’t have any idea what it means. You wouldn’t see any patterns. This way you can see the patterns and it will make sense when you’re looking at the data and if you have any questions, please let us know.
Reach out, comment, share, whatever it may be, and let’s keep the questions flowing hopefully on the chat here because a lot of times we get questions that are texts, email, direct message, wherever it may be, people you know, feel silly, asking questions where it might be. But we want to try to educate, help educate as many people as we can, so please keep them in the chat. Let’s jump right into this.
Days On Market
Days on market, and we got some pretty interesting data here. Days On Market went down and then came back up. This is now the second county of the five, kind of big five counties. Macomb came up as well. It’s the first time we’ve seen counties come up on Days On Market in months, you know, in a while. So it’s interesting data. Very interesting. Some stuff to keep an eye on, that’s for sure.
Active Homes On the Market
This is just a day in time. That’s the one day in time, it was the end of the month usually takes data, or I should say the first couple of days of the next month. So we go back, find that data of the previous month and do that. So here though, we have a significant drop from ’16 to ’17, but then we’ve got an increase in ’17 to ’18. So again, a sign of things to come. We will see. So again, things to pay attention to.
Months of Inventory
Here, Months of Inventories or ratio basically for all these numbers, real quick glance, you know, what’s going on. We had a decrease here three to two months and now back up to three months. So we’re seeing some data. All the counties, all five counties have been like this in the August data. So very interesting. The month of Inventory is at the rate homes are selling, how long would it take every last home to sell if no new homes came in the market? So you know, a balanced market is usually four to six months. So when you have a balanced market, it’s four to six months. We’re at two and then three now. So when you have one to three, you’re in a seller’s market and when you’re at seven-plus, you’re in a buyer’s market, that means we have a lot of inventory. So when we have recessions and depressions and you know, in 2009, 2010, 2011, 20112, we were at, you know, 10, 12, 15, 18 months of inventory. So it gives you an idea of where the market’s at a quick glance.
New Homes on the Market
We’ve seen again, a little decrease over the last few years. This is actually, most counties have been increasing actually in this Oakland is one of the few that have decreased still from ’17 to ’18. So again, we see inventory shortage is going on and that’s what leads to a lot of these increases in prices which are going to get into right here, which is the price per square foot.
On average, the county has risen all the way from 113 all either 129 now. So again, if you’re getting your home value, you’d have to have an appraiser or a real estate professional, a real estate agent. You know, some of them like our team to come out and value your property. This is a rule of thumb. This is not taking into consideration where you live in Oakland County and what subdivision you live or where you’re at, right? If you’re on a farm, if you’re in a sub, you got to have some kind of look. But this gives you an idea. This pattern, what we really want to look at, this pattern of increased over the last few years generally lets you know that the prices have been increasing in your area. Right?
So now I hope you guys are getting this. I hope you’re getting this. This is incredible stuff and it gives you that insight to know and now make decisions based on actual data for you and your family. Again, this is, you know, the price per square foot. What you do with that is you take your square footage and you multiply it by, this price, its average and you’d get your valuation around what your home might be valued for. So you have an idea, a ballpark.
Then Sold – the last one here is sold and this is a buyer’s stat, it’s really a buyer category that we have and this shows how many homes have been sold. So you see it doesn’t change too much, the buyer pool doesn’t change all that much, but again these are homes that are closing in August. So it’s down a little bit because you know, these are properties that when out of contract in you know June and July and then they’re closing in August. So home inventory has been down so we don’t have as many closings going on in Oakland County or any of the counties for that matter. So this is down a little bit and all the counties. Again, we see it very little bit change and fluctuate. The buyer pool does not change that much unless there’s massive interest rate changes, recession, depression, things like that.
So I hope this made sense for you guys. I hope this is something that you can use and maybe share with someone if they need it. We appreciate you guys and your time and energy. We love bringing this to you because it takes a lot of time for us to put it together and then actually put the videos out and send them to you and I know none, but we really appreciate having you and your time, your attention and energy, and we look forward to seeing you. More updates and more of the content we’re putting out. So appreciate you and we’ll talk to you soon.