March 2019 Real Estate Market Update – Wayne County, Michigan
We have your Wayne County March 2019 Real Estate Market Update. Let's jump right into this thing. I preface every single video now, every market update video now for months and months and years and years with a couple of things. We do three years of data that way you guys can see the trend. You guys can see what's going on. If I just gave you this year, it wouldn't make any sense. Remember, "the trend is your friend in all of investing." We have the month previously, the month in arrears because we have all the data now. March is now over. We have all the data. It's just like the government coming out their jobs report first Friday after the month. We do the same exact thing. So we got all that data. The last thing I will say, which is our new thing is our podcasts and those of you listening on the podcast, we're going to walk through point by point here. That way you guys can hear it. You don't have to actually see it. It's nice to see the trend and kind of see what's going on. But we'll try to walk you through the best we can that way you get the most out of this as well. If you have questions, comments, concerns, go to our Facebook channel, our YouTube channel to go put questions, comments, concerns there. I appreciate you guys more than anything and being here at Legacy Group MI for that as well by the way. So Wayne County March 2019 - let's jump right into this.
Days on market
If you see DOM, ADOM, CDOM in anything real estate related, it means days on market in essence. So average days on market was 53 two years ago, 51 last year, 52 this year. Pretty dang even over the last couple of years.
Active homes in the market
This is a snapshot, a one-day snapshot. How many active listings were there on that day when the data was taken? So 4,333 two years ago, 3,706 last year, then up to 4,327 this year. Kind of this pattern we've seen in the up-down-up, some bounce here and in the stock world they call it the "dead cat bounce" and we will see what happens. A lot of times what happens after a dead cat bounce is you have a crash after that. We'll see. We're not gonna get into that today, but we'll see what happens. But it's tough to kind of correlate there. I'm just making a statement of fact about something else, but it doesn't necessarily have to correlate with what's going on here though.
Months of inventory
The month of inventory is the rate at which homes are selling now, how long would it take to sell every single home without another new home come on the market? And we are at two months of inventory two years ago, two months of inventory last year and three months of inventory this year. So again, going up a little, I'm gonna give you guys some context. One to three months is a seller's market. Four to six months is a balanced market and then seven-plus is a buyer's market. It gives you guys some idea of what's going on here and what that looks like. Again, it's a quick snapshot. You can see what's going on in the market without having to dive into all these numbers. So you can tell, "Hey, you know what? It's a seller's market, it's a balanced market. Ooh, maybe it's shifting a little bit towards a balanced market." We'll see. Keep your eye on it. But that's what that number is there for.
New homes in the market
This is the number of new listings that came online in the month. We had 2,855 two years ago, 2,844 last year and then 2,829 this past March. So again, very even slight, slight decreases over the last couple of years each year, but basically about the same, which is good. Good to see. Hasn't changed much, honestly. Still a seller's market. Those numbers are still low, but it's not a bigger drop like some of the other counties, which is good.
Price per square foot
$72 a square foot two years ago, $81 a square foot last year, $82 a square foot this year. And what this is, if you multiply this number by your square footage, you'd get a general valuation of your home. But remember, this is a countywide data. It's not taking into account your neighborhood, what you've done to the property, et cetera. So you have to hire a real estate professional. You've got to have someone on our team. You've got to have a real estate appraiser, someone walking your property, seeing what's going on, walking the neighborhood, asking questions, finding out what you've done to improve the property to get a true evaluation of what's going on here. But this, as I said, this gives you a trend more than anything is what I want you to see of which way your county is trending, which is good for Wayne County. It's trending up just like the other counties.
The last one here is sold properties. This is the number of sold units, the number of closings in the month of March. This is our one real buyer statistic. We don't usually see too much change in the buyer pool unless there are huge things happening, cataclysmic events, depressions, recessions, et cetera. So we don't expect this to change too much, although this has over the last couple of years. 2033 homes sold two years ago, 1,759 last year, and then 1,607 this past March. So again, we've had less inventory. So it doesn't surprise me that there are not as many closings this past month as there was in the years previous. So I think it's going on too. Student loans, people are having a hard time saving, interest rates had been going up, so people become a little bit discouraged. So it doesn't totally surprise me that that's down a little bit. It'll be interesting to see going forward since we've had the same amount of listings basically go live in this month it'll be interesting to see going forward. What does it look like in April, in May, in June, July when the closing numbers come in.
That's it guys, that's our Wayne County March 2019 Real Estate Market Update. Hope you got something out of this. I appreciate you guys being here and spending your time with us. If you have your questions, comments, concerns, like I said, please put them into the public domain if you're comfortable. That way we can answer and help the most amount of people possible. We get a ton of messages from you guys offline in essence indirect channels, etc, which we really appreciate, but we want to try to help as many people as possible. So I appreciate your time, your energy more than anything. The most important asset we have is time. So I really appreciate you spending that with us at Legacy Group MI on the YouTube channel and Facebook channel. That way you guys can check the videos out there and see the comments, questions or concerns. So appreciate you guys more than anything and we'll see you on the next one.