May 2018 Real Estate Market Update – Wayne County, Michigan
Hey whats up guys, Brandon Gentile here, Legacy group real estate team.
We have your Wayne county May 2018 market update, lets jump right into it.
So, we have questions that I get all the time, two of them. Why are you doing May and why you have three years of data. And the answer is very simple we do the data in the reverse because just like united states does a job report at the end of each month. So we do ours the first thursday after the month has ended because we have all the data by then. The numbers tell us a story. Robert Kiyosaki is one of my biggest mentors, he talks about numbers telling us the story. The patterns tell us a story and that’s exactly what this does.
This is showing us three years of data so that we can see the pattern and where the market is going and what its doing. And this is something that I do as an investor, as a business owners as a human being as a family man, whatever you want to call to make a good investment decision. This is what I go by. When I am advising clients, this is the kind of data that I use to help them.
So, let’s jump right into it and remember this is just wayne county.
Days on the market:
DOM, ADOM(additional Days on Market) or CDOM (Cumulative Days on Market ) all of that is the average time a home is listed on the market. 52 in 2016, 41 in 2017 and 33 in 2018, . Big drop, 17-day drop over last two years of data here. That’s incredible, this really goes to show you why we are in such a steep seller’s market right now. So just over a month active on the market. This is really truly incredible. We usually see a balanced market 60 days on the market even above.
Active homes in the market
Again, this is the reason why we see such a steep sellers market. Look at this huge drop of 1700 homes in active homes on the market compared to two years ago, same time two years ago. Think about the lack of homes being on the market and this is county after county after county. So this truly is incredible. And this bears that out, which is the months of inventory. This is a quick ratio to show what kind of market we are in. What this means is the rate homes are selling, how long would it take to sell every last home if no homes comes to the market.
Balanced market is about 5 or 6 market of inventory, anything above that 7,8 9 or 10 plus , thats a buyers market. There are aton of homes in the market. We are in a pretty good sellers market couple of years ago with only 5800 homes in the market. Now we are down to 4100, we are about to be in a one month inventory range . So that’s how steep is dropped over last few years.
NEw homes coming on the market:
This is state fairly similar. So May did have a fairly stable influx of homes coming in the market which is good. That’s somewhat reassuring.
PRice per square foot
This has gone up, very similar pattern, we see a pretty good jump, that $15 square foot jump over last two years. This is county wide so if you need a true analysis for your home you need a real estate professional come to do it for you. You can have our team come to you to do it. What you can do is take the square footage of your home and multiply this by this number here and that’s about what you are going to get for your home.
This is a broad generalization to give you an idea of a range of your home. So you need a true market analysis on your home to get a real value. This is county wide data. But again, this gives you the pattern. Your area of residence is probably going to have same type oc increase. That’s why we do these numbers, so that you can see the patterns.
Number of homes Sold.
This number hasn’t really changed much at all, which is not surprising. This is a buyer stat. Above of all were seller stats, this is a biyer stat. Buyer pool does not change much unless there is a big catastrophic event like a depression or a recession. This bears that out, it’s the same exact number almost through the last couple of years, so the same amount of homes are still selling even though this has dropped.
So , I hope this makes sense to you guys, if you have any questions on this, feel free to comment here or shoot me an email.