June 2019 Real Estate Market Update – Wayne County, Michigan
We have your Wayne County, June 2019 Real Estate Market Update. Let's jump right into this thing.
We preface every video with a couple of things. Now I feel like I'm going to just a parrot, just constantly saying the same thing over and over again. Every market update with in terms of how we preface it because I get tons of questions about us. We have to preface every video for the last four years. This is every month. It's the same thing. We have three years of data. That way we can see the trend. We need to be able to see the trend. "The trend is your friend." Remember that the trend is your friend. If we gave you just this year of data, it would not make any sense. So three years of data that way we can see what's going on. We also have the month previous - we're in July, but we're showing you June because we have all the data. It's now the month is closed. We can go back and get the data, just like the jobs report from the economy, from the government. The month closes up that next week or so, they give you all that data. So let's jump right into this thing.
Days on market
DOM, that is average days on market, 37 days on market two years ago, 31 last year and then back up a little bit to 38 days on market this year in Wayne County. So again, we're seeing an uptick in all of the days on market, really across the board here in Metro Detroit.
Number of active homes in the market
This is a one-time thing. So this is the day the data was taken, how many active homes on the market? So take it with a grain of salt. But it gives you a trend obviously because we have three years of data here to show. Five thousand forty-seven homes in the market two years ago. There were 4,342 last year and then 5,211 this June when the data was taken. So again, kind of hovering around that 5,000-mark on average, that mean there.
Month of inventory
At the rate which homes are selling, how long will it take to sell every last home with no new homes come in the market? Two months of inventory two years ago, two months last year, and then it's still not quite three by rounded up. It's about 2.7 so we rounded up to 3 here. I'll give you a little chart. That way you guys know. Just a quick ratio basically to see what kind of market are we in without having to look at all these other data. So I want to give you this chart so you can see. One to three months is a seller's market, that means there's a lot of demand and not a ton of inventory. That means sellers are getting good prices for the homes and have a lot of leverage. Four to six months is a balanced market, which is what it means. It's self-explanatory. Then seven-plus is a buyer's market. That means that there's a lot of inventory, there's maybe not as much demand and prices are really, really dropping or are really suppressed. So that gives you an idea of what kind of market we're in just at a quick glance.
New homes in the market
This is the number of new listings that came into the market in the month. So this is a month-long number here. Three thousand seven hundred ninety-seven two years ago, 3,477 last year and 3,638 this year. So we actually had a decent amount of listings, not quite 2017 numbers, but definitely more than last year, which was good. So we liked seeing that, a little bit of uptick here, getting more towards maybe hopefully a balanced market. We'd like to see that four or five month marker eventually where both sides are creating win-win deals for each other.
Price per square foot
I'll get to this in a second actually. $89 a square foot two years ago, $94 a square foot last year and $101 this year. So this is a lagging indicator. The prices per square foot is still going off. That's a countywide number. So if you do want an evaluation of your home, remember you still have to have a professional, someone from our team and appraise or someone to come over and do your home. Look at your neighborhood, look what you've done to the property. And this is a countywide number, so it was taking it all the cities, everything. And it just gives you an idea of the trend county-wide going forward. Obviously it has increased. So most likely the value of your home has increased because we're showing you that here purposely, but you still need to get that professional over to do evaluation on your home if you're looking for that.
Number of sold homes
This is the number of closed transactions. So people that actually sat at the table and signed on a home, Two thousand thirty years ago, 2,103 last year and 1,949 this past June. So this number has decreased a little bit. We usually don't see a huge swing in this. We had a pretty decent swing over the last two years, but we just don't see too big with swings unless there's a depression or recession. Something really catastrophic. But again, that is not totally surprising just because there have not been as many homes previously on the market. So that makes sense in the previous months, in May, April, stuff like that. It makes sense. There's not as many. Plus, there's a lot of headwinds, a lot of uncertainty in the market geopolitically, interest rates doing weird things. So it makes sense that that number is down a little bit. But going forward, it'll be interesting to see because remember, we got more homes, way more almost a thousand more homes, 900 more homes on the market this June than we did last year. So it'll be interesting to see going forward how that number shakes out.
So that's it, guys. That's Wayne County June 2019 Real Estate Market Update. I appreciate you guys, your time, your attention, your energy. It's the most important asset that we have. I truly, truly, and blessed to have it and I just appreciate everything you guys do and the content you consume from us. If you have questions, comments, concerns, go to @legacygroupmi on your Facebook or YouTube. Put those questions, comments, concerns there and we love to answer them. Appreciate you guys. We'll see you on the next one.