December 2016 Real Estate Market Update – Oakland County, Michigan

Hey guys, what's going on? Hope you guys had an awesome new year. Awesome Christmas and everything. Great holiday season. Look forward to 2017. Hopefully. I set some big goals this year. Really hope you set some big goals this year. It will be a great year, 2016 December. We're going to do it. Our market update. So you guys saw half of my Insider’s Report video. I'm going to post part two of that probably next week, I think. There's the other half of that. We've got to do that. So, December, that was the insider’s video that goes deep, that goes in. If you watch the first part of that, we're going real deep on that. That is where we’re going into economics, the global market, the national market, things like that. In this, we go the micro level. So that's macro-level insiders update.

I don't know if that's going to be a public thing forever. It might just be for the people that are on our newsletter and subscribed to that, but this is a more, micro look. So this is just Oakland County. We’re going to small scale, really gives you a good look. Oakland County is a huge county obviously, so it gives you a good look at what's going into the real estate market here in southeast Michigan. So, what we have here, and again this is something we do every month, so we had our micro look at our macro look. So December 2016, I'm going to go over what was going on all last year. We had just really big problems with inventory. We had very little inventory and it was just a lot of the homes that are out there, just weren't fitting people's needs and just the prices have risen a lot so it was a real struggle for buyers last year. We'll see what happens this year and what's going to happen there.

But it was a real struggle last year. It's obviously time will tell, but it looks like it's kind of possibly be more the same this year. We'll see. I mean, if you've watched the macro look, then you saw what was going on with just the global markets and the global economy and everything. It's interesting. Look here for the next few years, but we'll see what happens for the time being. This is what's going on, this is what's happening. This has been what you're seeing here, and I'm explaining to you in a second is what's been going on for months now. If you've been watching some of these, the Oakland County real estate market updates, you've been seeing the same trend. It's the same thing over and over again.

And the macro stuff again, check out the Insider’s video update because that's going to give you more of a macro look, more of the big picture of what's going on and what's coming down the pipe. So that's interesting. So this one we had last year, we had to have 2015 here, we have 2016 here. We're doing a little comparison, so again, if you haven't seen them, as we're doing the comparison from year to year to see what's going on and put some perspective on things. Then on the housing market.

Days on Market

So days on market in December 2015, there were 36 average days on market, only 31 this year. So again, it's the same kind of trend, been decreasing in the number of days on market on the average. So same thing going on a month over month.

Active homes on the market

The number of active homes. So there were 6,000, almost 6,100 active homes in 2015, in December. There were 4,300 this past December. So again, a big drop-off in the number of active homes in the market. It's just, I keep telling everyone, people always are asking, “Well, hey, should I sell my home or what should I do? When should I do it?” Any month is good. I mean really, most obviously the spring is when most sellers are hitting the market. But man, you don't have anything on the market, then you have nothing, and the buyer pool really stays fairly constant throughout the year. You have different things going out to interest rates and stuff like that. But again, the insurance rates have only moved, what once or twice in the last 10 years.

Then the election now. The election does make things uncertainty, people just don't know what's going on, especially when it's a non-incumbent year. So there wasn't an incumbent, up for re-election so it makes that uncertainty, does hurt the market a bit, coincides with fall and school and stuff like that. So it makes it a recession, I guess if you want to call it. But it's a great time to be selling your home because there's just nothing out there. Buyers are having a heck of a time and we worked them all day long. Our whole team works with a ton of buyers and our sellers love it. The buyers are having a heck of a time. So more of the same, common.

Price per square foot

$104 last December 2015, $111 here. So $7 increase obviously on the average price per square foot.


So we had 2000 sold in 2015. We had 1788. So again, we have this huge drop-off in the number of active homes, but it's not as big and you'd work out the percentages. But that percentage, I'm sure is not as great as that percentage. I mean that's almost. What does that almost 25 percent, that's not even near? You're still selling almost the same number of homes and you have way less than the market. It just goes to the same trend that we've been seeing it just ramp it up this last year or two.

Months of inventory

Again, it kind of sums up all that's going on. Only two months of inventory compared to three months. Very little inventory, very, very little inventory.

New homes in the market

New listings. Again, same thing throughout, 2000 to 1,600. It's just one of those things. The last two years, January has been crazy. I mean we're already starting to kind of see. A multiple offer situation type of stuff going on. That's the last few January's. Then the same exact thing. So the same thing's been happening. It starts in January, obviously, March and April are when everyone kind of starts really gearing up for the home listing and selling season. But if you want to get a jump on it, it's not a bad decision.

So I hope you guys had an awesome holiday. As I said, we're going to be doing this every single month if you haven't seen these before. We started these earlier this year. We do in our micro look and our macro look. So the macro look is the Insider’s update. That comes once a month. We basically spaced them out like every two weeks. So you get two a month, once on a micro look, once a macro look. I hope you guys are enjoying them. If there is something else you guys want to see, we're doing a lot of Q and A also and we're going to be ramping up the different content we're providing to everybody. So if there's something that you want to see, something that you want to know, definitely reach out to us, let us know what you want to see and we will gladly do it. We love doing this kind of stuff. So micro look, macro look and it's every other week, basically one will be coming out. So look out for it. Have great weekend guys! We'll talk to you soon.