April 2018 Real Estate Market Update – Genesee County, Michigan
We have your Genesee County March Update. I know some of you have been following us for a few years now. We've been doing these market updates, doing a kind of adding a county, it seems almost every couple of months, growing and expanding. Now we're doing most of Metro Detroit, all the counties in the area that way we can get an in-depth look at what's going on in your area. Maybe someone you know, someone needs help and can make better decisions for you and your family regarding probably most people's biggest investment or asset or liability depending on how you look at it and what your vocabulary. That's my Robert Kiyosaki coming out of me right there. But let's jump right into it. Let's get into it here. And if you guys have any other counties you want to see, look at the feed here. The timeline on our Facebook page. If you're on YouTube, there's a playlist with the market updates. You can see everything there. Let's jump right into it.
Days on Market
You're going to see a common theme here over the last couple of years of what's been going on. A straight seller's market. I mean there's no if, ands, or buts about it there. There's nothing. I can't hide it. So I'm cutting right to the chase as a seller's market. And again, these numbers are bearing themselves out every month, month after month, year after year here. Days on market: 85, 67, 57, just stark a contrast every single year. This is March 2016, March 2017, March 2018. We go in arrears, we go backward to see because once the month is over, then we have all the data and you'll look back and see what's going on.
Active homes in the market
Again, huge decreases, basically in half over the last few years' active homes in the market. So in March 2016, there were 1700 active homes. This past March, there's only 964. So when you're sitting there wondering what's going on, why the agent isn't doing their job and finding new homes or wherever it may be. It really is just a supply and demand thing. We have these numbers here. We go through them every single month. We go through the inventory, we go through everything and it's just one of those things that the buyers have to look at the silver lining, which is all time low interest rates. Those are steadily climbing just a tad, a little bit, taking it up a little bit. I guess that's another story for another day. Those are for our macro Insider's Report videos because we go in-depth there. We talk about the global economy, interest rates, the Federal Reserve, gold and silver, investing, all these different things that I personally love and that are our whole team really loved. But it's really my true area of study. I've been studying for 10 years now and doing myself, investing in different asset classes and seeing them firsthand what they can do for you. I want to bring that to all of you. So again the number bearing itself out and you're going to see this. You've been seeing this if you go back, like I said, for months and months, you're gonna see a lot of the same type of patterns. This is why we go back two years. This is why we have all these data now that we wouldn't go back and show you what exactly is going on.
Months of Inventory
Four, three, two. So what this is is at the rate that homes are selling if no new homes come on the market, how long will it take to sell every last home of those homes that are currently on the market? So six months. About six months is a balanced market between buyer and seller markets. You can see here, we're in a severe a seller's market right now. In the great recession, we had 10, 12, 15, 20 months of inventory in some places, in some areas and that was really a steep buyer's market. Now we're going to be a steep seller's market because there's such low inventory. People are leaving the market honestly because it's frustrating for buyers right now because there's just such low inventory. People are fighting over homes.
732, 703, 618. Again, a decrease in new homes coming in the market.
Price per square foot
Price per square foot has gone up significantly every single year in March over the last couple of years. Some of these numbers don't always pan out. Like in Macomb County for instance, in March this number actually went way up. It was way up and then it went down a bit and then went up a tiny bit, but it still wasn't as big as this number which for most counties the numbers play out for the most part. But you're going to have some abnormalities here and there because the sample size of homes is getting so low now. There's not a ton of data to aggregate actually and get together. I mean there is, but in the general sense, when you compare it to a couple years ago, you're going to get a lot better cross-section of what's going on.
So this is the last category. Sold is kind of a buyer category actually. It kind of tells you how many buyers are out there. The buyer pool doesn't shift too much unless there's a great recession or something catastrophic happening. And this again, you're around 500 a month here and then down to 386 with the buyer pool shrank a little bit. There's obviously not as many homes in the market and really honestly in my professional opinion, I think it's because people are leaving the market to be totally honest with you. There are some uncertainties in the markets obviously right now. Political, geopolitical things going on right now, interest rates climbing a little bit. But I really think that a lot of this has to do and just personal experiencing this, talking to other agents, our team seeing what's going on is from people leaving the market. There's not a lot of holes in the market so people are leaving the market because they're frustrated.
So I hope this gives you guys a good inside look as to what's going on in your area or maybe someone that you could help. Tag it, share it, send it to them, tag them in here that way they can get the same info you guys are getting. Because I truly believe that numbers tell a story. Robert Kiyosaki, his Rich Dad had always said that numbers told a story. You can look at your financial statement, you can look at a business' financial statement, you can tell where the money's going, the numbers tell a story and they tell what's or they tell us right with that entity. So hopefully you guys can see these entities, these counties that were going through and see where things are going right, where they're going wrong. And they tell a story. They just tell you what's going on. I get flack from people because we're telling the truth. This is what's going on. There are very few people - I've seen very few people in the entire country doing this and helping people because you know, real estate is obviously a sales profession. But I truly feel that if I can help other people and make the right decision, things will come back tenfold. So we're going to both benefit from this and this is why we do this. This is exactly why, because I don't care it might mess up a couple of sales for our team and people might not act right now. Who cares? I don't care. I mean I want people to do the right thing, have the right numbers and the right information because that's not what's going on in a lot of areas in life right now. That's another story for another day, but I want you to have the right information and once you have the right things, that way you can make the right decisions for you. So I appreciate your time and energy more than anything because it is the most important thing we have. I appreciate you guys a ton and we'll see you soon.