We have your Real Estate Market Update for Oakland County, July 2018. Let’s jump right into this. So, we always give you guys the last three years of data. My biggest mentor, Robert Kiyosaki, always talks about his rich dad and he always said that numbers tell a story whether it’s a family, you know, your personal life, your financial statement, your businesses’ financial statement, whether it’s your own business or the employer you work for. There are financial statements everywhere and those numbers tell the pattern and they tell the story of what’s going on. That’s why we give you three years of data that way you can see exactly what’s going on in the market. If I just gave you this year or this month’s data on this year, you wouldn’t know anything. That wouldn’t make any sense. You wouldn’t understand it, right? That way you can see the pattern develop over the last couple of years. You can see exactly what’s going on and you can make more sound decisions for you and your family.
I also, we all do July, that way we know and have all the data from the month. The month is wrapped up. We have all the data. We give you the most pertinent, freshest data possible, so that’s why we always do the month in arrears as well. So let’s jump right into this. DOM, ADOM, CDOM – you’re going to see that basically, all has to do with days on market. Its additional days on market are cumulative days on market. Just worry about the highest number you see there because that’s what is actually was the market for, so just worry about that number.
Average Days on the Market
So average days on market, and again we’ve seen this in a couple counties here. This actually has gone up a little bit and they’ve generally been going down, but this month, July has been a fairly stable month actually as we go on the last couple of years. So as you’re going to see in the other on the timeline here and our Youtube playlist, you’re going to see the other July updates. Well, the county’s pretty stable overall. So it went down a little bit and then came back up a little bit, so that’s again Average Days On Market.
Active Homes in the Market
Active Homes in the Market – This is a moment in time that we’re showing this. Then this is again, the number of homes on the market currently went down a little bit and then back up a little bit actually compared to last year. So again a moment in time doesn’t give you the best snapshot in the world, but it does give you the pattern of what’s going on at the end of every month.
Month of Inventory
Most of the inventory, MOI stands for Months of Inventory. The Month of Inventory is the rate that homes are selling. If no new homes came on the market, how long would it take to sell every last home? Here we have a couple of years we had three and now two months down to two months from the other counties around here down to one month of inventory. For contacts, four to six month is a balanced market, probably five or six months, really the balanced market. Anything above that, you know, 8, 10, 12, 15, that’s the buyer’s market, lots of inventory, not as many buyers out there, so you can see that we’re a pretty steep seller’s market right now. So I’ll just give you a quick ratio, you know, a quick context of what’s going on and that’s basically this ratio encapsulates all these different numbers that we’re showing you.
New Homes in the Market
New homes in the market – So this is the number of our new homes. This is the number that’s been very, very stable no matter what county in July is. This number here, so you can see a little bit of a drop and then it picks back up again. The number of new listings, obviously in July is a great month for homes and selling homes. But these numbers are really bearing it out and it’s been very stable. Every county is basically, look at this – a little dip from 16 to 17 and then back up at 18. So this is again, a good sign. Stable. July’s continues to be a good month to sell your home obviously. Here though, you can again see the increase in price, a significant increase in price over the last couple of years because there are not as many homes in general for sale because some of these data is taking, you know this is just a month data. This is taking homes from other months as well that were listed. Homes that were leftover that got pushed into the next month, so that’s why you’re going to see some of these are outlier sometimes. But of the 18 numbers, 16 and 17 are going to be all telling the same story, so you might have one outlier too. You discard those and take the general look, the general pattern of 16, 17 numbers and what is that telling you. So again, stable prices increasing know again because there are not as many homes in the market. Then just general appreciation and price has been going up. Again, another reason why buyers were struggling a little bit.
Then lastly we have sold. So this is really kind of a buyer statistics and we usually don’t have anything too crazy happen. As you see, here again, a very stable number in the county, in Oakland County in July. This number doesn’t change too much. The buyer pool doesn’t change usually unless there’s a huge catastrophic event like a recession or depression or something like that. In some of the counties, we’ve seen this squeezed a little bit because interest rates were going off. Affordability has been kind of hard to come by for some buyers. So you’ve seen some people get frustrated and some people dropped in the market, so you’re going to have that once in a while in this economy, but overall, very, very stable. Again, it goes to show you though, when you’re looking at these patterns, the market is telling us it’s a solid market. Obviously, you have numbers like this, you’ve got some of these numbers going down, a number of actives. Obviously, when the buyer’s pool stays the same, there’s less inventory. People start fighting it out more, right? So the numbers increased. Obviously the price increases and again, it squeezes market. But from the market, the affordability becomes a little bit harder.
So I hope you guys got something out of this. If you live in Oakland County, I appreciate you watching this. If you know someone that lives in Oakland County and might benefit from this, please share this with them, tag them, and I appreciate your time and energy more than anything because it truly is the most important thing that we have. As I mentioned earlier, if you want to see the other Metro Detroit counties, we have all in the timeline there. So you can go see those there. Our YouTube Channel at Legacy Group MI has our market update playlist where you can see we’ve been doing this for a handful of years now. You go back and see all of the market updates. So appreciate you and your time and energy and we look forward to seeing you guys soon.