So what is happening the real estate market in West Bloomfield Michigan? Have you been getting nervous that we are going to have a real estate correction in the near future? Well let's go over the past real quick. Our market here in Michigan starting turning in 2010. Ever since then our real estate market in Metro Detroit has been rising. Some years more than others. Some areas more robustly than others. We have had many good years in the real estate market. In fact in some area we have come back to the high home values of 2005 to 2007. It would be hard to find anybody upside down anymore. But where are we headed you ask?
That question is like asking where the stock market is headed. We thought the stock market was doing good last year, but look at where we are at a year later. Everybody is nervous about the stock market now. I think many people are thinking the same way about the real estate market. Many consumers believe a real estate correction is near. I beleive it is affecting our local real estate market.
Let's look at some of the indicators of West Bloomfield real estate. The first graph shows the average sale prices of homes since 2015. As you can see we have been going up with just minor dips in sales prices.
If you don't know but they consider 1 to 4 months of homes for sale to be a seller's market and as you can see below there is only 3.75 months supply of homes for sale in West Bloomfield. I would say it is even less for a lake home for sale in West Bloomfield.
Then let's look at the DOM. If you do not know what DOM stand for it means days on the market. The shorter days on the market the more the homes are selling. For example if the average days on the market was 90 days or 150 days you could say it was a buyers market. The homes are not selling! They are sitting on the market. As you can see the average DOM is only 35 days. So if you take into account that some homes are over priced, over priced for their condition, odd layouts and over priced, or maybe by an large electrical tower. So you have houses that have issues and are on the market a long time. The other homes are selling in less than 35 days. Remember the 35 days is just an average of the days on the market.
- So we have three indicators of the West Bloomfield real estate market.
1.) Home prices are still rising. There is no big dip or correction yet.
2.) The number of months of supply is less than 4 months
3.) The days on market (DOM) is only 35 days
All strong indicators that the real estate market in W Bloomfield is still going strong as of now. How long it will stay that way nobody knows. Will it take a big economic downturn to make it a buyers market? Will President's trade war be the start of it? I don't know. There are a couple of factors that are keeping the home inventory down. One of the biggest factors is that people are just not moving as much as they used to. Back in the early 2000's people used to move every 7 years. People are staying in their homes longer. I think the average is probably 20 years now. So less people moving, less homes on the market. Less homes on the market, lower inventory, Lower inventory, higher demand because there are just not enough homes for the number of buyers. I hope this explains the West Bloomfield home market. If you have questions feel free to reach out to me. You can also find more information about lake homes in West Bloomfield here.......http://westbloomfieldlakehomes.com
