May 2018 Real Estate Market Update – Genesee County, Michigan
Hey whats up guys, Brandon Gentile here from Legacy group real estate team. We have your May updates for you, all the county here, you can find all on our Facebook channel or youtube channel. All are in the playlist ready for you.
We have this month update for you. We are going to talk about Genesee county in this one. Genesee county market update, May 2018 and again we do this in the rear because we have the information for the entire month. That’s why we go backward at weekend to the next month and look at the prior month to see what the numbers are saying and what they mean for you.
So, let’s jump right into this.
Days on market is the very first one. DOM, you would also see ADOM or CDOM that means additional days on market or cumulative days on market.
We have a decrease here in the average days on market over the last couple of years. Again, we show the three columns here so that you can see the patterns and get a sense of what the market is doing. That way you can make correct decisions. If I would have shown you this year, it wouldn’t have meant a ton to you, I can explain a little bit and tell you about the past history but it is going to make it a lot easier if you see these numbers.
Active homes on the market:
Sometimes, of these we have 18 different numbers, we get one or two abnormalities. This seems like an anomaly. We have a lot of active homes right now, we didn’t have in last two years. Which is genuinely not the case, usually we see it going down. And this number here is a ratio.
Months of inventory, MOI. This number is a ratio of all these numbers combined and gives you a quick look into what kind of market it is.
MOI is the rate at the homes are selling, how long would it take to sell every last home at the speed homes are selling if no new homes hit the market. So it takes about a month, and this ratio has stayed the same over last three years. It tells us that it is a steep seller’s market. Not a lot of homes on the market. Low inventory, demand hasn’t changed much and we are going to see it down. Demand hasn’t changed much and the inventory has gone down, that’s why we see such a small or low month of inventory number. In the recession when there are a ton of homes in the market, you get a buyers market. And that is opposite. You get 10 to 15 months of inventory. A balanced market is about 5 to 6 months of inventory. So this shows us how steep a seller’s market we are in now.
New homes coming into the market: So this stays very similar over the course of the last couple of months. Again, this is a kind of anomaly, or kind of outlier.
Price per square foot:
This again is going up for the last couple of months because we have such low inventory and the buyer demand is same or increasing. There is not a lot of inventory and the demand goes up, that means the price goes up. So that’s why we are seeing that over the last couple of years.
This is a general rule of thumb for the county, this isn’t for every specific home. If you are going to sell a home, you can’t just take it as a gospel because this is county wide and just gives you an idea. If you multiply your square foot area with this number, it gives you an idea of what the price should be.
The number of homes sold:
This tells you about the number of homes sold in a month. Again, we have a decrease here, but not terribly drastic, but there are not a ton of homes on the market so the decrease is significant and shows that the buyer pool may have dropped somewhat. This number doesn’t change usually unless there is a catastrophic event like a recession or depression.
So that’s the Genesee county market update. I hope this makes sense for you guys. We try to blow through it that way so people can get in it and get out and get what they need from that. If that doesn’t make sense or you have questions, please comment below and let us know about the information you find useful.
We really appreciate your time and energy and thank you for checking this out. If you are interested in the other counties, stay tuned and keep checking our youtube channel.