August 2019 Real Estate Market Update – Wayne County, Michigan

We have your Wayne County August 2019 Real Estate Market Update. Let's go.

So I always preface every video with a couple of things: we have three years of data because we want to see the trend, to see the pattern. If you just had this year, it wouldn't make any sense. We also have the month in arrears because now we have the data. It's fresh off the press. It's signed, sealed, delivered, we've got it for you so you can make the best decisions for you and your family. So let's jump right into this

Days on market

So we've got 36 days in the market two years ago, 33 days in the market last year, 35 days on average this year. Pretty consistent across all of them.

Active homes on the market

It's a one day snapshot. So remember that the time that this data was taken, it was one day. The number of active homes in that day on the market, 5,391 two years ago, 5,188 last year and then 5,924 this past August. And again, every single county in Metro Detroit have all seen the same thing. We've seen a dip in the inventory going forward and we've seen an uptick in the active. So someone just keeping in mind going forward.

Months of inventories

MOI is at the rate homes are selling, how long would it take to sell every last home without any new homes coming on in the market? So I'll give you context here in a second as well. We had two in 2017, two in 2018 and then three months in inventory in 2019. So it up ticked a little bit, but I want to give you some context as to what that means. One to three months of inventory is a sellers' market. Four to six months is a balanced market and then seven-plus is a buyers' market. So we are still in the throws of a sellers' market going up a little bit, but still there. Obviously what that means is that the sellers are making out. It's just a difficult time for buyers to find things. So once you start getting more balanced, then it starts becoming a little more of an even playing field. And obviously, seven-plus months of inventory, you have things like recessions, depressions, things like that where there are big catastrophic events that are just inventory everywhere and buyers can buy whatever they want.

New homes in the market

So this is the number of new listings that came on the market over the course of the month. So this gives you a more accurate representation of what happened over the entire month. Three thousand six hundred forty--five two years ago, 3,894 last year and then 3,835 this past August. We've actually seen an uptick here. Dropdown a little bit from last year actually, which generally last year was down overall. But actually be quite, quite handily two years ago. So it was good to see that there are a number of homes in Wayne coming on the market still. That's actually a little different than it was still down from last year. Every county has been down from last year. However, it was good to see that it's beating 2017 at least because that affects your numbers going forward.

Price per square foot

Eighty-six dollars a square foot two years ago, $95 a square foot last year and then $106 a square foot this year. That is you taking your square footage and multiplying it by this number to get a quick valuation of your house. Remember this is countywide data though. Let's not take into consideration any local things and happenings in your neighborhood or happening at your house. You have to have a real estate professional, someone on our team and an appraiser come over and give you a valuation on your house specifically because this is countywide data. I show you this because there's a trend. I want you to see the trend in the county which way prices are going.

Sold

This is our buyer statistic. Our last one here, this is the number of closings that happened in that county. Two thousand four hundred twenty-three two years ago, 2,230 last year, dip down and then dip down again. Just low inventory, 2,078 just over 2000 closing. So again, we'd like to see more closings there. We're just really starting to hemorrhage. It's almost like the market is grinding to a halt. It's just a very interesting time. There's a lot of different political uncertainties going on. Obviously the Fed's doing interesting things. They're buying bonds and all, they're selling them. They're raising rates and all. They're slashing them. We're in an interesting, interesting time and the market's reacting appropriately because people are just like, "I don't know what's going on." Quite frankly, no one knows what's going on. You look at the top people. I'm talking to economic minds in monetary and mines, history of minds, not economic academics, talking to people that have studied this stuff through and through and they're everyone's bathroom.

So interesting times ahead. Very interesting. But stay tuned because we'll have it here for you and we're going to be going right through all of it. I appreciate you guys more than anything. Your time, your energy is the most important asset we have. If you have any questions, comments, concerns, go to @legacygroupmi, our Facebook or YouTube channel. Go comment there. We will answer all your questions, comments there. If you know someone in Wayne County or if you are yourself, please comment, share it with them. Like it, say hello or something. So we appreciate you guys more anything and I hope you have an awesome month and we'll see you on the next one.