January 2022 Real Estate Market – Oakland County, Michigan
We have your Oakland County real estate market update for January 2022. Can you believe that is January? Holy cow. I don’t know what time it’s gone, but let’s jump right into this. So we have a couple things. We have prefaced with two things that we have three years of data, cause the trend is your friend. We wanna be able to see what’s going on. If we had one year data, it wouldn’t make any sense. And then we have a month in arrears. So we’re talking about January because when you string this all together, all the five, six years we’ve been doing this data, you will to see the pattern. And that’s the most important thing. Just like seeing this three years of data, we wanna be able to see this data. having up to the minute up to the second info is not as important when you are talking about real estate, cause real estate moves a lot slower than say the debt and credit market, the stock market, you know, crypto market, those, those move instantaneously.
We within seconds where there’s not necessarily flash crashes, shall we say in real estate? So, we want the exact data, the, the accurate data, we don’t necessarily need data to the second.
Days on market
So days on market, this is anytime you see DOM, it is days on market. And , again, these are all averages. Remember it’s not medians. These are averages 71 days on the market two years ago, 43 last year and then 38 this year. So again, we’re seeing just over a month on average between all housing, I mean that’s from a hundred thousand homes to a million, 10 million homes in the entire county. So, very, very little, wait times for most people selling their homes.
Active number of homes in the market
Active listings. Now this is a one day data sample. Also the day the data was taken, how many active listings were there on the market. There’s 4,042, two years ago, 2,264 last year and 1,835 this year. I mean, there’s even less. This is, I can’t tell you how unbelievable this is. I really wish you know, we had you know, Marie who’s unbelievable who is our operations manager. She does so much for our team. She pulls all this data for me and makes my life a lot easier. And this, I wish I had her pull this other data from like the last five years before this up to 2015 or so, because this is truly remarkable. I mean, we are already in a real shortage of homes and it’s, you know, less than half now. I mean, we are really struggling here with the amount of homes on the market and which it’ll show out here and I’ll play out here in the data, which I’ll show you the ramifications of that.
Month of inventory
So, months of inventory is the time that it takes to sell all every single remaining home, how long would it take or at the rate homes are selling, How long would it take to sell every last home? Okay. So 3.15, two years ago, 1.74 last year than 1.47 this year. So just under six weeks, it takes to sell every home you have every home, you stop the market from adding anything. If in six weeks, all of them will be gone. That is just totally unbelievable. And just for context, one, three months is a seller’s market four to six is a buyer or a balance market. And then seven plus is a buyer’s market. Meaning there’s a lot of homes in the market and prices are coming down. So you can see, we are firmly entrenched in a heated seller’s market.
New homes in the market
New listings, this is a month wide, so how many homes came on the market this entire month? 2347, two years ago, 1,845 last year, and then 1,617 this year. So again, we’re seeing less and less. It’s just frustrating. And, it’s saddening really quite honestly, because it’s there’s just structural problems in the economy that hurt a lot of people. So it’s sad, I wish these numbers were going the other way, cause yes, you know, there’s sellers that, you know, equity is rising in their homes. People are, you know, refinancing their homes, pulling equity on their home, but it makes it very hard for people to sell and go move and, start new chapters of their lives or come in and start their lives, start their family in their homes. This is making it very unreachable because of this.
So it’s, it’s not good. And there’s, you know, we do our insider’s reports. We do other videos that talk about why this is the structural problems we have as a world and the decisions we have made for decades to just kick the can on the road and I’m just not gonna go down that road right now in this market update. This is the micro, not the macro.
Price per square foot
Price per square footage is $121 a square foot. Two years ago, $145 last year, then $163 this year. So if you took this $163 and multiply it, buy your square footage, you get approximately the price of your home. So if it’s a thousand square feet, it’d be, you know, $163,000. Would it be approximately the value of your home. But if you want a true evaluation on your home, you have to have someone like an appraiser or someone on our team. Someone’s been in the business for eight, 10 plus years. Who’s seen thousands of transactions, actually give you evaluation on your home specific to your house. This is just to see the trend to see which way the trend is going and the equity is flowing. So that’s good. That’s good to know, for asset owners, but again, remember not everyone’s an asset owner, and I should say, I mean, it’s a liability, right? If you’re paying on it yourself, however, it could, you know, it could be an asset if you’re a renting it out, renting the land out and making income on your property, over the expenses.
Sold
Sold listings. This is the amount of people actually living, in their home. They are actually closing on their homes. They had a closing table and switching homes, living in a new home, 1283, two years ago, 1,301 last year and then 1,246 this year.
So again, you see this across the county, as all Southeast, Michigan stays pretty constant, , less there’s black SWAT events, really. But even that the last couple years really didn’t change it all that much quite honestly. Um, so you know, people are, again, are still continuing to purchase that kind of at that same level, it’s just the inventory’s coming down. So you see prices going up, demand stays, you know, somewhat, similar, but inventory goes down. So prices go up. So that is your Oakland county market update for January 2022 guys. We just, we appreciate you so much your time, your attention, your energy, everything you spend with us. It’s the most important asset we have with our time. So, we thank you and we’ll see you on the next one.