We have your Oakland County May 2019 Real Estate Market Update. Let's jump right into this thing. So always preface every video with a couple of things. We had three years of data here and we do that because we want to see the trend. "The trend is your friend," as they say in investing. If I give you just this year of data, it wouldn't make any sense to you, right? So we'll give you three years that way we can see the pattern and the trend going forward. We do the month previous that way you can see exactly what is going on because we have all the hottest data. The month has been closed, it's wrapped up. We now have all the data, just like the jobs report coming out with the government the first, second week of the new month. We do the same thing here. So let's jump right into this thing.
Days on Market
DOM, we have 43 days two years ago, 38 last year and then 46 this year. So it jumped up a bit this year. Let's see how this plays out through the rest of the numbers. But we have seen some jumps up in inventory over the last month or two in the counties around Metro Detroit.
Active homes in the market
Now, this is a one-day snapshot. When the data was taken, this is more important to see that trend than the actual number itself. It's just a one day snapshot. How many were active at that moment. Active homes - 4,454 two years ago, 4,568 last year, and then up to 5,180 this year. So really a big jump in the number of homes that have been listed and that were active in the month of May.
Month of Inventory
We have 2-2-2 across the board. What months of inventory (MOI) stand for is at the rate homes are selling currently, how long would it take to sell every last home with no new homes coming in the market? So that's what that means here. I'll give you some context. One to three is a seller's market. That means sellers are getting great prices. There are low inventory and a lot of demand. Sellers are making out. Four to six is balanced. That means everyone's making out. Everyone is making deals happen, right? Seven-plus is a buyer's market. That means that there's a lot of inventory and there's not as much demand. So that means the buyers have leverage and they're making out. So that way you see this number going forward, you know exactly very quickly what kind of market we're in and how you can take advantage of it.
New homes in the market
So this is the number of homes that were listed on the market in general. This is kind of a nice way to wrap the month up and see what's going on. How many homes are actually listed? We had 3,965 two years ago, 4,056 two years ago and then 4,190 this past May. We're seeing increases across the board in inventory. So it's gonna be interesting to see how it plays out going forward over the next few months across really the prime selling season here in Michigan over the summer months.
Price per square foot
One hundred forty-four years ago, 136 last year, and then down to 135 this year. We can see the inventory going up and then we can see the prices going down because there's more and more to choose from, right? So the prices are going down, simple supply and demand. And what this really is, if you take the price per square foot and you multiply that by your square footage, it's going to give you your approximate home value. Take this with a grain of salt. You don't want to take this as gospel because this is really countywide, right? So it's going to take every city into account. You want an analysis just in your home, this just gives you a good idea of where you're at. So if you need someone, you actually need a home value, you've got to reach out to a professional. You've got to reach out to someone on our team, to an appraiser to get you an actual report in your home to see where your home stands exactly.
Number of homes sold
This is the number of closings that you have. We had 2,121 two years ago, 2,183 last year and then 2,102 this past May. So again, a little bit of a decline here in the number of homes sold, which is kind of to be expected because we see these numbers starting to trend in a different way.
That's it, guys. I appreciate your time, your energy. That's the Oakland County May 2019 market update, appreciate your time, your energy and your everything because it's the most important asset that we have. So if you have questions, comments, concerns, please go on the podcast @legacygroupMI, on Facebook and YouTube. Put your comments and concerns there. We can chat about it there in the public forum that way we can help everybody. So I appreciate you guys more than anything and we'll see you on the next one.