December 2019 Real Estate Market Update – Wayne County, Michigan

We have your Wayne County December 2019 Real Estate Market Update. Let's jump right into this thing.

We preface every video with a couple of things here. We have the month in arrears that way we have fresh, hot-off-the-press data for you guys. We have three years of data that way we can see the trend. Remember, "the trend is your friend." We want to see the patterns. If we give you one year of data, you're not gonna know what's going on. So let's dive right into this thing.

Average days on market

Forty-five days on market two years ago, 44 last year and then 48 this year. So we got a little bit of a bump. We're seeing that kind of across the board and then we're seeing other numbers throughout that aren't really jiving with that number. A lot of weird stuff going on in this market. Have fun figuring it out.

Active homes on the market

Four thousand seven hundred eight two years ago, 5,128 last year, and 5,320 this year. Again, we're seeing this is kind of calm right now as well. This is a one-day number though. How many homes are actually active on that day in the county when the data was taken? So again, we'reseeing a slight increase in the number of homes in the market toward the end of the month. We take the data toward the end or at the beginning of that next month. So we're going to see how that kind of plays out going forward.

Months of inventory

MOI, you see it abbreviated as that. That's at the rate homes are selling, how long would it take to sell every new home with no new homes entering the market? That's what months of inventory stand for. I'll give you context to really kind of wrap this together. Three, three, three, 3 across the board here. What does that mean though? It means that one to three months is a seller's market. Meaning, there's not a ton of homes in the market and a lot of buyers. Prices are going up. Four to six months is a balanced market. Seven-plus means are a lot of homes available and there are not enough buyers. Prices are going down. So that's with the crash in 2009-2012, we saw a lot of that. So that gives you a quick ratio when you enter a market as to what kind of market it's in. Are we getting into a seller's market where prices are high? Remember buying low and selling high. That's always the name of the game, right? So can you time the market appropriately? It's somewhat relative, but still, if you can time the market, especially when you're getting the market if you're a first-time buyer. Oh boy, does that make a world of difference that you can jump in at the bottom of the market, build equity without having to do anything just because the market's rising? The rising tide lifts all boats, right? You can build equity just for buying at the right time. That's it.

New homes on the market

This is the number of new listings that actually came onto the market in that month. Two thousand twenty-four two years ago, 1,973 and then 1,989 this past December. So again, not much of a change from last year, which is good, but a little bit of a decrease or off a couple of years ago on this. 2017 is still a really low inventory year as well. So we can see there's still not a ton of inventory. There's little more home sitting right now, but there are fewer homes coming out in the markets. We're going to see how that plays out going forward.

Price per square foot

Eighty-three dollars two years ago, $86 last year and $93 this year. Again, this trend is going up. We want to kind of see where that trend is going. Equity is building obviously because there are lots of homes that are entering the market. That's obviously, again and again, a little bit of increase, just kind of went along. Made an increase in price and there are fewer homes in the market. So we'll see. There are more homes sitting here though. There's also the last entrance. There's more on stakes in the months coming and going forward. Who knows? Maybe those prices change, may they drop all the others more almost the market. So we'll see. But for right now, over the past few months, we've seen obviously the price going up because there haven't been as many homes. So we will monitor that. Remember, if you take this price and you multiply it by your square footage, it'll give you about what your home's worth. If you want an actual evaluation in your home, you have to have a real estate appraiser or professional, someone on our team come to give you a valuation on your home. Otherwise, you're just using countywide data. This is the entire County of Wayne, but it gives you really more of a pattern to see which way your county is trending. Is it the equity increasing, their values increasing? So that's what I can give you. Keep that in mind.


This is the number of sold, people actually closing on homes. One thousand eight hundred twenty-six two years ago, 1,497 last year and then 6,059 this year. We've seen a little bit of rebound but you're not quite up to even here when this really started to dip. So this was really low. It's extremely low. There's a little more going on but still not as much as we'd like to see. So interesting things that come again yet to be seen. But there are more waves that are going to crash ashore that we don't know. We just don't know in a year or two what's going to happen exactly. I guess this year is that things will stay somewhat similar to what we've seen here this past couple of years. Unless there are huge economic shifts that happen, huge economic tidal waves that come crashing in that have yet to prop up, then I would guess it's going to stay the same. The Fed sounds like they're not going to be doing much, so we'll see.

I appreciate your attention, your energy. It's the most important asset we have, so I appreciate that. If you're listening to the podcast, please go to @legacygroupmi. On YouTube, Facebook to comment, share with someone you think might enjoy this. Did you give your 2 cents? We'd love to hear it. So appreciate you guys. We'll see how the next one.