January 2019 Real Estate Market Update – Wayne County, Michigan
We have your Wayne County, January 2019 real estate market update. Let's jump right into this. I preface every video with a couple of things. We do the month previously because just like the jobs report coming from the government, we have all the data. It's hot off the press and now we can give it to you, first Thursday at the end of every month, just like jobs report it's the first Friday at the end of every month. The three years of data we have is so that you can see the trend. We want to see the pattern. You want to be able to see what's going on. If I just gave you this year right here, it wouldn't make any sense. So the trend is your friend, as they say, the numbers tell a story, rich Dad says, Robert Kiyosaki's mentor. So you want to be able to see what's going on. That way you can see the trend that pattern. And you can make decisions that are best for you and your family. So let's jump right into this.
Days on market
That's the average number of days on the market for listing. 55, 49, and stayed steady basically over this past year. A good sign, a balanced market coming to your direction. Possibly. We'll see a little bit though.
Active homes in the market
This is the number of homes that are active at that time when we took the data. So that day active on the market again, pretty similar data actually over the last couple of years. So Wayne County has been probably the steadiest actually over all the major counties in Metro Detroit. So again, jumped up a little bit. We actually do have more in this past January than we've had in previous January over the last couple of years, but still not eclipsing 2016, 2015. Some of those were when we had tons of inventory in those years, right. We're coming out of a crash and there's tons of inventory in the market. So still looking for those days obviously, but we want to be in this balanced area where we're getting two.
Months of inventory
This is the rate that homes are selling. If no new homes come to the market, how long will it take to sell every last home? Three months, three months, four months. We are actually seeing this first time in a long time. We have seen an uptick and we've seen this across the board, like I said, in every major county in Metro Detroit. Just to give you some perspective, we have zero to three months is a seller's market. Four to six months, four to seven months is a balanced market. And then seven-plus is a buyer's market. So there's just tons of inventory there. When the recession happened, we had eight months, 10, 15 months of inventory. There are tons of homes in the market. So this is a good number to not have to dive into all the data and just know, boom, what's going on in the market, what's happening and what kind of market are we in? So good to know, obviously as a buyer or a seller where you're at. The lowest the number goes, the better it is for sellers and the higher that number goes, the better it is for buyers. So it's always a push-pull.
New homes in the market
The number of newly listed homes that came on the market in January. Again, you can see this as very steady, just like this number, very steady over the last couple of years, which is good. We still have more though than we did the last couple of years, which again is good. And this is why we've had this uptick in the months of inventory because we've had more homes listed. Even with the market volatility and a lot of things going on, with interest rates rising. I think it's getting some sellers to say, "You know what? Buyers are not gonna be as plentiful because the interest rates rising. So I want to try to get my equity when I can." So that's gonna be interesting to see, we'll see how that plays out. So keep an eye on that.
Price per square foot
This again has gone up steadily. This, also, is county-wide, so if you want an actual appraisal on your home or you want some analysis on your home, go have a real estate agent, you've got to have someone. You got to contact somebody, you got to contact our team to come to do this for you because this is something that you can't just look at a countywide number and say, "Oh, that's what my home is worth." Multiplying your square footage by this number will give you an approximate. It's just like zillow.com or homes.com or realtor.com. They give you an algorithm, amalgamated number where they just spit you out here. This is basically what we think your home is worth because the zip code you're in, that's kind of what this is. And so you actually need a professional to come to your home and give you a down and dirty analysis on your home. It's just a rule of thumb to know where it's at. The bigger picture is to see where this trend is at, so the county has trended upward over the last couple of years.
So the last one is sold. This is really our buyer's line or a buyer statistic. This really doesn't change too much. We see a little bit of a change because again, we're looking at homes that went under contract in November, December and there wasn't a ton of homes. That's probably why it went down a little bit compared to the last couple of years, but usually, the number hasn't changed too much. The buyer pool stays relatively the same unless it's a huge crash, something catastrophic. This has gone down a little bit. The percentage of changes is somewhat significant. So we do have to note that. But again, not too, too much change. I'm looking forward too unless there are huge crashes here, which are our microeconomic reports. We do our macroeconomic reports which are called the Insider's report, where we talk about, you know, what's going on in the world, asset bubbles, stock prices. We've talked about credit bubble, loan bubble, tariffs, student loan bubble, terrorists, all these things, interest rates. We are talking about all these stuff that affects all of us because globally we're so tied now to each other that all those big things affect even our small markets, our micro markets. So this local, Metro Detroit real estate market updates that we do in these five big counties is great, but we still have to understand what's going on in the bigger picture and how it's going to affect this going long term. In my opinion, again, it's all the research that we do and look at. It's going to be more balanced market this year I believe because of interest rates going up, sellers wanting to get rid of some of their inventory and get out there and get the equity that they can get for their home. We already are seeing it in the first month of the year. We're seeing a little bit more balanced, a little bit more inventory going out in the market. If there's not a big crash, something like that, something catastrophic or devastating, I think you're gonna see a little more of a balanced market hopefully for everybody's sake. Because even the sellers, a lot of sellers have to jump into the buyer's market, right? A lot of people weren't able to sell last year because they didn't want to jump into the craziness that was that buyer pool of finding nothing on the market. So, unless you're moving out of states or you're moving to a place up North, you're going to live somewhere else, going to rent or something like that, then those sellers really make out because they can get their equity and then leave. They're not having to worry about that buyer craziness.
So, this is the Wayne County January 2019 Market Update. Please let me know if you guys got something out of this. If you have any questions about it, please share this with anybody who is in Wayne County. If you know anybody in Wayne County, please share it. Tag them, think that they might get something out of it. So I appreciate you guys more than anything and I really appreciate your time, your energy, the comments you'd give us. If you do have questions, comments, concerns, please put them in the feed though, in the comment section. That way we can help as many people as possible. I really appreciate all the direct messages we get, the private messages and the things that people say when we see them personally. But, if you have something, please put it in here. That way we can answer stuff and benefit the most people possible. Have some dialogue on here. And again, appreciate you guys, your time, your energy is the most important thing we have and I really appreciate you spending some time here with us. We'll see you guys soon.