If you are thinking of buying or selling a home in Metro Detroit you may want to know what is happening.  Since September the real estate market has slowed down.  Some non real estate people people would say that is normal for this time of year.  That is partially true.  It does slow down in the fall and winter in metro Detroit.  But it is abnormally slower this winter.  The market has shifted.  Even top Metro Detroit real estate agents are feeling it this year.  Many of them are slower than ever before.  Is it slower than ever before?  Is it slower than 2008?  That I don't know.  I just know it is slower.  Here are some of the statistics of how many homes are on the market.  You can  see that over the last few years the number of homes in Oakland County have gone down.  So if you look at the 2nd column (that's the number of homes for sale in Oakland County) you will notice that we have over 2000 less homes on the market.  The first column is all the homes in our metro Detroit MLS.  In three years you will notice that there are 14000 less homes on the market.  This is helping new home builders.  But I have even heard that they are slowing down too.  So what will our real estate market be like this spring.  Will South Eastern Michigan homes still sell fast?  Will buyers still be scrambling to find a home?

  This is squeezing buyers.  There are just so few homes to chose from.  What is causing this change?  One of the factors is that home owners are staying in their homes longer.  Back in 2005 to 2007 they said the average home owner moved every 7 years.  Now I am betting the average is 20 years.  Less homes turning over.

Now if you look at the chart below for Oakland County homes you will see that the average days on the market has dropped too.  So the homes on the market are selling.

I was out with two young home buyers this weekend and they were repeating what their parents were saying.  The parents were saying that the real estate market was slowing down and that the home prices were going to fall.  I don't believe that will be the case.  In order for that to happen we need more inventory.  I don't see many people moving.  I just don't see the numbers changing.  What will have to happen is that we have more homes on the market than buyers. 

Metro Detroit home inventory has to go up.  Or the economy has to take such a drastic change that it scares the buyers out of the market. More home owners have to become sellers.  So what will cause that?  I myself don't know.  I do not have that crystal ball.  Even the number of months supply is down.  All of this shows Oakland County is still a buyers market.  So if you are a buyer you will still have to get out there and see the home as soon as it hits the market.  You will need to make decisions quickly and put your best offer in the first time.

Metro Detroit home sellers still can price their homes near the top of the market.  The key is not to over price your home.  You don't want to be sitting on the market because then home buyers will low ball you.  It is smarter to price it right from the beginning and get it sold.  I hope this January 2019 real estate update helps you.  Feel free to visit my website http://www.southeasternmichiganhomes.com