July 2018 Real Estate Market Update – Genesee County, Michigan
We have your market update for July in Genesee County. Let’s jump right into this. So I preface all these videos with the fact that we have three of the data and we do the month previous month, previous because the month has finally come to an end. All the data has come in and we can give you all of the most pertinent, hot off the press data. We do the last two years, including this year, so three years total. That way you can see the pattern. We want you to see the pattern and be able to see what exactly is going on. My mentor, Robert Kiyosaki, he always talks about his rich dad talking about the numbers, telling a story. You know every business has numbers. Every family has numbers. All those numbers tell a story. They tell you what kind of financial shape you’re in.
Market reports tell you what kind of shape the economy is in, what kind of shape the housing economy, the housing market’s in, and that’s what we’re doing here today. So that way you can see a pattern. If I just showed you these numbers right here, just this year, I wouldn’t mean anything to you. It wouldn’t mean anything at all. You’ve got to see the pattern that’s developing and what’s going on. That way you can make the best decisions possible.
Days on Market
DOM, days on market, or you might see ADOM or CDOM. That basically just has to do with average days or cumulative days on market or days on market. Just look at Days on Market and just kind of whatever number’s the biggest, that’s the number you need to go by for how long it’s been in the market.
Average Days on the Market
So the average here has really dropped over the last two years obviously in Genesee. I’m going and really kind of showing an alluding to the seller’s market that we’re in.
Active Homes in the Market
This again is a snapshot in time. It’s just one snapshot in time. So, it gives you an idea of what’s going on. But like, you know, this is pretty similar. This is way out there. So it might be every set of ’18 numbers for every county we do every month might have one, maybe two outliers. This looks like it’s one of the outliers for this month in this county because we have a lot of homes abnormally high compared to the trend that we were seeing. So there can be any number of reasons that that was happening. So you want to kind of take with a grain of salt and you know, dig into it a little more because you want to see what are the other numbers tell you because again, maybe the numbers are showing us that this is correct the rest of the way or maybe it’s gonna bear out that it’s not.
Month of Inventory
Months of inventory is at the rate homes are selling. If no new homes get in the market, how long would it take to sell every last home? This is that one right now. A balance applies about four to six months of inventory. Then a buyer’s market, you know, 8, 10, 15 months plus of inventory. So you can see we’re a long way off from that. We are in a steep, steep seller’s market, especially in Genesee county obviously. So these numbers again aren’t necessarily showing that this number is totally correct and that’s why you got to take it as a whole, all ’18 numbers and see exactly what’s going on.
New Homes in the Market
So this is the number of new homes that have come on in July. In the last three years. Fairly steady. A little bit last year. 2017 was a pretty good year for homes in the market, but as we’ve seen in some other counties in message right in July, it’s been pretty stable actually. This usually has been trending down over the last couple of months, but for some reason, July has been a pretty stable month. It’s a big, big month to put homes in the market. So it’s been fairly stable across the board. A price per square foot, this has gone up obviously pretty significantly over the last couple of years and this again, and it just goes towards to, you know, go to show you that there’s not a ton of inventory out there truly and the buyer pool either stayed the same or dropped a bit. So prices are rising and again, these numbers are basically bearing out to show us that this was probably an outlier.
So again, this is down a little bit. The percentage change is a little bit. It’s not too, too much. Again, I wouldn’t expect this to change all that much because the sold statistic is really a buyer statistic. It’s showing us what kind of buyer pool there is, depending on how many homes there are, you know. Is this really changing much? If there wasn’t a lot of buyers out there, that might be at $400, some might be really dipping down. But it’s been pretty consistent. So the buyer pool looks like it hasn’t changed too much, so this most likely was an outlier. Maybe there’s a bad neighborhood or two. Maybe something happened. Maybe there are some issues going on that were unforeseen and that caused this number to be out of kilter a little bit and maybe frankly there was just a couple of good weeks here before we took these numbers in the last couple of years and there were, you know, not as many homes in the market.
So you just don’t know. That’s why you got to look at the data as a whole to see exactly what’s going on and to get the big picture. So I hope that makes sense for you guys. I hope you got something out of that. If you live in Genesee County or even if you don’t, you know someone who does, please share this with them or tag that. If you think that they might get something out of it. Like I said before, many times we want you to just provide people with the most amount of data as we can. So, I appreciate your time, your attention, your energy. It truly is the most important thing that we have and I’m just humbled and honored to have yours. We’ll see you guys soon. Also, if you want us to the other counties in Metro Detroit, we have them on our Facebook timeline here all over the past months as well. Then on our YouTube page, we have our playlist there as well with market updates. See you guys soon.