Friday Q and A: Did the Market Dip a Bit?
We do our Q and A videos on Tuesdays, the Macro and then we do them on Fridays. We do our Real Estate Q and A. It’s a question that we’re getting a little bit from the external crowd, which I guess is the consumer-based and everyone else. Then internally, we’re seeing a lot actually, which I refer to the real estate crowd and other agents, brokers, teams, investors, title insurance, people in the industry dealing with it all the time and it’s “Did the market dip?” That’s what I want to touch on really quick. In doing so I just did an update for our Metro Detroit Millennial Real Estate Investing Group and I just did the Wayne County Update. As you can see here we do our market updates and we did our updates a couple of weeks ago on the channel here for June.
But again, it’s a question that’s coming up and I wanted to go over this number again just to “prove” what’s going on. But we’re seeing this pretty consistently across the board here over the last number of months, but really more so probably this month. We’re seeing it in all the counties or seeing a little dip here. So this buyer, all these are our listing stats. This buyer stat is the only one that’s here which is sold that really kind of shows you the number of buyers in the market. If there are a million buyers then generally, hopefully, all these listings would be being sold in essence for the lack of a better phrase I guess. But, what’s going on here though is we actually have a dip and we’ve been seeing this a little bit, especially across the counties. Like I said, this could be any number of things, but the interest rates have ticked up recently and even though it’s very, really minuscule over the course of life, still, perception is reality and the consumer sees that and it affects them. It affects their purchasing confidence. So that’s one of the big reasons as to why those things might be happening right now. So we’re actually going to take this off quick.
That’s something like I said, being asked in our community a lot right now and it’s something that’s real, you know, it did. If people have been really hurting, buyer’s been hurting big time because they can’t find homes, they’re fighting for homes and it’s one of the reasons why we have like I said, this number here is so important. That number is really, really important. Subsequently, these as well because it shows you the pattern of what’s going on. It could be because there are a number of things going on like interest rates taking up, a couple other things could be going on, buyers getting discouraged because but there are a number of reasons but they are just not many homes in the market. There haven’t been. So people were beginning discouraged and it’s led to people leaving the market. You know, we’ve had a lot of sellers this year. Just that we know that in our sphere and then I know of many other people and that other people know that haven’t sold this year because they don’t want to jump into the buyer insanity. They don’t have to sell so they don’t want to jump into the buyer insanity.
Why people are scared to go into the market
So there’s a lot of discouragement going around in the community right now and also people getting squeezed. So, we have a lot of people who are in the lower age brackets who are having a very tough time saving for homes and getting money saved up because their rent is very high.
Wage is too low
Maybe leaving a lot of them are trying to live with mom and dad to save money. But with wages, one of the first we do our macro insiders reports, we talked about wage increase. Wage has finally increased a little bit and we haven’t seen much of that. So people are having a very tough time and that just happened. That hasn’t been happening, although the months and months leading up to that haven’t been happening. So people haven’t made to save up very much, they’re spending a lot on rent. They’re maybe trying to live with mom and dad.
There are the mortgage restrictions obviously are a lot more than they were 10 years ago. They’re lightning a lot compared to what they were five, six, seven years ago. But these are a number of different reasons people are getting squeezed out of the market. Discouraged interest rates going up.
These are a number of different reasons as to why we’ve seen a tiny bit of a dip and it comes back to a little bit more of normal. What I mean by that is just it not being total insanity and having 5-10 offers maybe per property with a fairly priced property. Maybe we just have one or two or three offers. Maybe when you look out and you’re the only offer on your dream property. So it’s something that’s very real. It is happening. It has been happening with been noticing it through all the comments like I said really probably in the last month or so. Even in the last month as well or two months ago. So it’s somewhat of a dip. Some areas are not dipping though, some areas are just blown right through. But some areas are, they have, we have seen the buyer pool and drop off a little bit probably mainly because of these reasons. It’s gonna be interesting to me. Interesting going ahead, going forward and seeing what’s going to happen where the new building is going to come from. There’s just a very big shortage of contractors and being able to find people and then paying them what they want to be paid. Big builders are gone, finding contracting is very tough. So a lot of things that are kind of working against what’s going on right now in the housing market.
So it’s gonna be very interesting, can be very, very interesting to see what is going to end up coming from this. We will be keeping you up to date as much as we can here on a daily and weekly basis to know exactly what’s going on so that you’re in the know. So I appreciate you guys for your time, your attention and energy. For any questions, comments, concerns, try to throw them in the comments here. I know we say this all the time, people love to go to the DMs and the private messages and texts and things like that. But I want everyone to try to learn from the conversations that are being had. So I appreciate you guys, your time, attention, energy, and we look forward to seeing you soon.