Hey whats up guys, Brandon here, Legacy group Real Estate Team. We have your Oakland County Real Estate Market Update May 2018.
Let’s jump right in.
So, two questions I get all the time. Why do we do in the month previous? And why we have three years of data. And the answers are very simple. We have all the data for May because may is done. So we have all the data just like united states comes up with the jobs report, the first Friday every new month, we do the same thing. We do this first Thursday, very new month. We have three years of data because numbers and patterns tell us a story. When I am advising clients, when I am making decision about how to invest, when I am making decisions with my family, no matter who it is, I need to know the numbers I need to know the full story, I need to know what’s going on so that I Can advise people properly and they can make the decision. An advisor’s job, whether you are a CPA or financial advisor or a real estate agent, your job is to give and present the best information possible to your client and then they can make a discussion. Stop to make it for people. So I want to give everyone the information that way you can make the best decision for you and your family.
So let’s jump right into it. This is for Oakland County. If you guys want to look at other county updates, check our Facebook timeline or youtube channels.
Days on market: Very first one here, days on market, ADOM, CDOM ……… all has to do with the amount of time a home is spending on average on the market in that particular area, in this case, Oakland County. There is a 10 days drop over last two years, pretty good. It’s the reason why this is a sellers market. I should say this is showing that its a yearning sellers market. Just like the months of inventory, we would get to it later.
Active homes: We can see a big drop here, over last two years with active homes in the market. Again this is why there is a lot of new homes accumulating in the market but this is one point data, its one day. A bunch of homes did sell, that’s why there are not 8000 homes in the market. So active homes, a big drop from the last couple of years though, so you can see that pattern, those three different days that were taken out of three different months show that pattern of decreased hoes in the market.
Months of inventory: This is a great one, a very quick look to say what kind of market we are in and what MOI stands for, Months of inventory what it means is at the rate homes are selling currently, how long would it take for every last existing home to sell if no new homes come to the market. A balanced market is about 5 or 6 months of inventory, you know 7, 8, 15 its all buyers market is all buyer. Buyers market because there is a lot of homes in the market so homes are sitting there for a long time.
This is a severe seller’s market. We are down to two months of inventory. Again this is a ratio of all these numbers put together. SO it’s a quick overview of what kinds of a market we are in.
New homes in the market.
This stays fairly even, we have a fair amount of homes coming into the market which is good, we don’t want to see that down too much, that’s a good thing we are seeing that. Especially we need more homes. We see the same exact pattern throughout all county right now.
Price per square foot: this is showing the average price per square foot. If you took your homes square footage and multiply it with the price per square foot, you would get a range of price where your homies might be,.it would give you, your basic range or price of your house though, you need to seek out a real estate professional. This is countywide, this is not taking into consideration where you live. If your homes are next to a dog park or next to a dump. You need to get a proper assessment done on your home. This is county wide and gives you a general idea and gives you a pattern of where things are.
So you can have a little bit increase its down the tab, but we have if the 18 different data points we give you every month. We have one or two anomalies so this looks like it could be one of those anomalies because right now there are a lot of homes that are going for 200 dollars per square foot. That’s why you have to make sure you are getting the true analysis on your home by a professional.
Number of Homes Sold:
Fortunately, we have not seen too much of a decrease here, we really shouldn’t see too much of a decade because the buyer pool does not change very much. The buyer pool does not change much unless there is a catastrophic event like a rescission or a depression, so we haven’t seen this change too much, fortunately. There is a lot less homes in the market but we have seen about the same number of homes being sold. Again this is a buyers stat and all these are sellers stat.
I hope this makes sense. Let me know if you have any questions, we try to kind of blast through this because we are doing a lot of countries. We want to get you the information quickly. So you want information to you quickly, if you have questions, let me know. Send me a direct message or comment here.