December 2019 Real Estate Market Update – Oakland County, Michigan
We always preface every single market update video with a couple of things. We have three years of data that way you can see exactly what's going on. Remember, "the trend is your friend" in all investing. We have the month in arrears because we got the data hot off-the-press. Now we can give it to you. So let's jump right into this.
Days on market
DOM - anytime you see that. Fifty-One days 2 years ago, 55 last year, 56 in 2017. It's staying kind of the same from last year, remember that.
Average days on market
An active number of homes - 4,072 two years ago, 4,756 last year and then 4,526 this year. So again, a little bit of decrease. But remember, this is a one-day sample. This is a one-off number that you only are going to get. What is it that day when you take the data? That's it. So keep that in mind. More of a trend that we're looking for on that one.
Month of inventory
MOI - Every one of these numbers basically gives you a quick indication of what kind of market we're in. I'm going to give you context here in a second with what that means. But month-of inventories are at the rate homes are selling, how long would it take to sell every last home with no new homes coming on the market? Two months two years ago, three last year and three this year. So to give you context of what those ratios mean - one to three months in a seller's market. So you can see it's been a seller's for awhile. Four to six months is a balanced market. Then seven-plus is a buyer's market. Meaning there's a lot of homes for sale. There are not enough buyers to meet the demand. So that's when you have prices going down and stuff like that, right?
New homes in the market
New listings are actually a month-wide number. That includes all the new listings that actually came on the market in that month. One thousand four hundred forty-four two years ago, 1,671 last year and 1,519 this year. Again, staying somewhat even, but a little bit of drop from last year and even under a couple of years ago. So it's gonna be interesting again to see going forward. We've kind of seen this throughout the counties here in Southeast Michigan. But that is kind of the trend where there's less going forward than there was starting the new year. So we'll see. We're going to keep doing our market updates that way we're gonna see how this trend plays out.
Price per square foot
One hundred twenty-five dollars two years ago, $124 last year to $127 this year. So again, the trend is really kind of going up. That is, when you take your square footage and you multiply by that, it gives you about the value of your home. If you want your actual valuation, you have to have a professional come, a real estate agent, someone from our team, an appraiser come to your house and give you an actual valuation. This is a countywide number. So again, the trend is your friend. You want to see the pattern in general, prices are going up, right?
This is really a kind of a buyer statistic. This shows you who is actually closed, who actually had gone to the closing table and closed on the home? One thousand six hundred sixty-four two years ago, 1,387 last year and then 1,572 this year. So again, we've seen it a little bit of bump up this year, which was good. We want to see more sold. That's good. Good thing we bumped up. Last year was a really big dip in certain instances. This year had its own dips. The market is kind of doing some weird stuff. Because again, we all see the news, we see what's going on, a lot of weird things going on in the market.
That is your Oakland County December 2019 market update. I hope you guys got something out of it. We want to keep these as short as possible. That way you can get in, get out, get your information, be gone. I appreciate you guys. Your time, your attention, your energy is the most important asset we have. If you are on the podcast, go @legacygroupmi. On YouTube or Facebook, put your questions, comments, and concerns. We'll see you in the next one.