Unemployment Decreases throughout Southeastern Michigan

  • The unemployment rate decreased at the State and local level(monthly);
  • Regionally, Washtenaw County’s unemployment rate remains the lowest;
  • The average 30-year mortgage interest rate in Detroit is higher than the national average, lower than the week the federal interest rate was increased;
  • The Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices continue to increase monthly and annually.

According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the unemployment rate for the State of Michigan decreased slightly to 5 percent in March of 2017 from 5.3 percent the previous month. The City of Detroit’s rate also decreased, but at a slightly larger rate. In March 2017, the City of Detroit’s unemployment rate was 10.3 percent, a substantial cut from February’s 12 percent. Additionally, unemployment in the City of Detroit decreased from to 11 percent in March of 2016 to 10.3 percent in 2017.

The chart above displays the unemployment rates for each of the seven counties in Southeastern Michigan for March of 2016 and 2017. St. Clair County had the highest unemployment rate for both 2016 and 2017 (7.1 and 6.2, respectively) while Washtenaw County had the lowest rates (3.1 and 2.8, respectively). St. Clair County and Wayne counties were the only two in the region with unemployment rates at or above 6 in March for both years. St. Clair County also had the largest unemployment rate decrease between March 2016 and 2017 at .9; Monroe County had the lowest at .1.

Four of the seven counties (Livingston, Monroe, Oakland and Washtenaw) all had unemployment rates at or below 5 for March of 2017.

Above are three average 30-year mortgage interest rates at the national, state and local levels for the week of May 15, 2017. These rates were provided by bankrate.com, which does a national survey of large lenders on a weekly basis. As a 30-year fixed rate mortgage is the most traditional type of home financing, this was chosen to show the rate differences. The State of Michigan had the lowest average interest rate for the week of May 15, 2017 at 3.82, which was lower than the last time we examined that data (week of May 20, 2017 the rate was 4.14 percent). Also during the week of May 15, 2017 Detroit’s average 30-year fixed mortgage interest rate was higher than the national average; this was not the case during the week of March 20, 2017. During the week of May 15, 2017 Detroit’s average 30-year fixed mortgage rate was 4.12 and the national average was 4.02.

Compared to two months ago, when the Federal Reserve Raised the federal interest rate by .25 percent, mortgage rates at the local (Detroit), state (Michigan) and national level are lower. While the rates are currently lower, the federal interest rate increase is expected to impact credit products, such as mortgages and auto loans, in addition to savings, home equity lines of credit and credit cards.

The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $111,790 in February 2017; this was $940 higher than the average family dwelling price in January. Also, the February 2017 price was an increase of $8,440 from February of 2016 and an increase of $14,720 from February of 2015 and an increase of $18,370 from February of 2014.

Monroe County has Highest Medical Marijuana Licenses Per Capita in Southeastern Michigan

In 2016 in Southeastern Michigan there were 98,055 registered medical marijuana patients, a number that has grown by about 45 percent since 2012, according to data provided by the Michigan Bureau of Licensing and Regulatory Affairs (LARA). LARA is required to provide an annual report on the Michigan Medical Marihuana Program, which includes the annual number of patients by county.

In terms of sheer volume, Wayne County had the highest number of medical marijuana patients in the region at 34,941 in 2016. However, when examining the data per capita per 1,000 residents, Monroe County had the highest number at 26. In Monroe County in 2016 there were 3,889 medical marijuana patients. In 2012 the total number of medical marijuana patients in Monroe County was 2,118; between 2012 and 2016 the total number of patients in Monroe County grew by 55 percent.

On the opposite end of the spectrum, Livingston County had the lowest number of medical marijuana patients per 1,000 residents at 18, which was the equivalent to 3,463 total patients. Between 2012 and 2016 the number of medical marijuana patients in Livingston County grew by 54 percent.

Wayne, St. Clair and Oakland counties all had a similar number of medical marijuana patients per 1,000 residents as Livingston County. All three counties had about 20 medical marijuana patients per 1,000 residents in 2016. St. Clair County has experienced the highest percentage of growth since 2012 at 72 percent.

As the data shows, the number of medical marijuana patients in Southeastern Michigan has grown over the last five years, and this isn’t a trend unique to the region. Statewide data proves that throughout Michigan the number of medical marijuana patients has increased. In the graph above, a decline in the number of the medical marijuana patients is shown between 2013 and 2014, however this decline is not necessarily accurate. Rather, it reflects the two-year registry program, so the number reflects only the new patients who were required to apply that year.

While the number of medical marijuana patients in Michigan continues to grow there are efforts to fully legalize marijuana for adults 21 years of age and older. On May 5, the Michigan Coalition to Regulate Marijuana Like Alcohol, submitted language that would create a system allowing for the legal cultivation, sale and regulation of the substances. If enough signatures are gathered, the hope of the organization is for the ballot initiative to be on the November 2018 ballot.

Detroit’s Population Density Below Other Major Cities

In Detroit, there is about 677,000 people living in a 139 square mile area; this translates to about 4,900 people per square mile. Comparatively, in New York City the population density is about 28,000 people per square mile, in Washington D.C. it is about 11,000 people per square mile, in L.A. it’s about 8,500/square mile, in Chicago it is about 12,000/square mile and in San Francisco it is about 18,000/square mile. When looking at cities overseas some of those numbers double, if not triple.

Sparefoot.com, a website used to help individuals’ move,  recently created several data visualization images to show how low Detroit’s population density is compared to other large cities. To see this and read the article, click here.

The image below was also provided by them:

 

Highland Park Home to Highest Number of Rental Units in the Region

In 2015 there were nine cities in Southeastern Michigan where more than 50 percent of the housing units were renter occupied. Ypsilanti had the highest percentage of renters at 69 percent, followed by Royal Oak Township at 67 percent. Ann Arbor, Auburn Hills and Detroit, all homes to universities, also had more than 50 percent of its housing units renter occupied. In Detroit, 51 percent of the occupied housing units were renters. Areas with the highest percentage of renters in Detroit were located along the river and in the lower Woodward Corridor. In these areas more than 75 percent of the housing units were occupied by renters. Conversely, areas such as Palmer Park and Rosedale Park had among the lowest percentage of renters, ranging between 2 and 30 percent. There were only 20 Census tracts in Detroit where 30 percent or less of homes were occupied by renters. As seen below, majority of the Census tracts throughout Detroit had between 30 and 60 percent of the occupied housing units occupied by renters.

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At the county level, Livingston County had the lowest percentage of renters at 15 percent while Wayne County had the highest percentage at 37 percent. In Livingston County, Cohoctah Township had the lowest percentage of renters at 3 percent and Howell had the highest percentage at 48. In Wayne County, it wasn’t Detroit with the highest rental rate, but rather Highland Park at 64 percent. Grosse Pointe Farms had the lowest rental rate in Wayne County at 2.6 percent.

Regionally, the average percentage of homes rented was 22 percent in 2015; of the 210 communities in the region 112 of them had less than 22 percent of the housing units occupied by renters. Of those 112 communities, 47 of them had rental rates below 10 percent. Novi Township, located in Wayne County, had the lowest percentage of renters at 2 percent, followed by Orchard Lake (2.3%) and Grosse Pointe Farms (2.6%).

While there were less than 10 cities in the region with rental rates above 50 percent, we will highlight next week that there has been a trend toward renting in recent years, particularly in certain areas. In a recent Detroit Free Press article higher rental rates was attributed to the increased number of foreclosures that occurred during the mortgage crisis. A 2015 New York Times article discusses how homeownership rates had been falling for eight years straight at that time, largely due to the burst of the housing bubble.

Percentage of Residents Insured in Southeastern Michigan Increases since 2010

Across Southeastern Michigan all seven counties experienced an increase in the percentage of residents with health insurance between 2010 and 2015. In 2010 then President Barack Obama signed the Affordable Care Act into law; this is a piece of legislation that was crafted to increase access to and the quality of health insurance. Wayne County experienced the largest increase in overall health insurance coverage at 2.8 percent. In 2015, according the American Community Survey, 87.7 percent of the Wayne County population had health insurance. Wayne County also experienced the largest increase in private health insurance regionally at 17.5 percent. Of those with health insurance coverage in Wayne County in 2015, 83.2 percent had private health insurance coverage. For areas like Wayne County, where the percentage of those on private insurance plans has increased, it is likely due to the larger amount of private insurance options the Affordable Health Care Act offers.

On the opposite end of the spectrum, Livingston County experienced the smallest percentage increase in overall health insurance coverage between 2010 and 2015 at 1.4 percent; 93.3 percent of the residents there had coverage in 2015. While Livingston County also had the lowest increase in private health insurance coverage regionally in that time frame, it experienced the largest increase in public health insurance coverage at 28.2 percent.  In 2015, 24.4 percent of those with health insurance coverage in Livingston County had public health insurance coverage; this translates to about 44,800 residents. Majority of those in Livingston County between the ages of 18 and 64 in 2015 with public coverage were not in the labor force (56%); 36 percent of that population was in the labor force and 8 percent was unemployed.

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When examining the child population regionally, there was no increase in the percentage of children uninsured in Livingston County. Washtenaw County experienced the largest decrease at 30.6 percent. In 2015 2.5 percent of Washtenaw County’s child population was uninsured; this was equivalent to about 1,700 children. Wayne County, which hosts the city with the largest percentage of uninsured children regionally (Hamtramck) experienced about a 25 percent decrease in the percentage of uninsured children. In 2015 in Wayne County about 16,700 children, or 4 percent of the County’s child population, was without health insurance.PcntChng_Under18_2010-2015_JPEG

In examining this data we see that since the enactment of the Affordable Care Act thousands of residents throughout Southeastern Michigan have been granted more access to health care. According to a New York Times article, those who benefited the most from the Affordable Care Act were those between the ages of 18-34, those living in rural areas and those who are black and Hispanic. In Wayne County, which had the biggest overall percentage increase in insured residents about 25 percent of the population in 2015 was between the ages of 18-34 and about 40 percent of the population was black and about 6 percent of the population was Hispanic. It was also noted in the article that those with lower incomes tended to benefit more from the Affordable Care Act.

Hamtramck has Highest Percentage of Residents, Children Without Health Insurance in Southeastern Michigan

In Michigan, majority of residents have a form of health care coverage, but the kind of coverage often varies. In Southeastern Michigan, the majority of the region has some type of private health care coverage, but there are several municipalities where majority of the residents depend upon public coverage. According to the Michigan Department of Health and Human Services there are several publicly funded medical assistance programs offered to residents, depending on their age, income, financial resources and other requirements. Public health insurance programs in Michigan include Medicaid, Healthy Michigan Plan and the Children’s Health Insurance Program.

For this post the percentage of residents covered by health insurance is examined, as is the percentage of residents with private or public insurance plans.

 

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Throughout Southeastern Michigan health care coverage for residents ranges from 78 to 100 percent, with only about 15 municipalities having 96 percent or more of its residents having coverage, according to the American Community Survey conducted by the Census. Of these 15 municipalities, most are located in Oakland and Washtenaw counties. Overall, in Oakland County 92 percent of residents had health insurance coverage in 2015, and in Washtenaw County 94 percent of the population had coverage. In Oakland County Bloomfield Hills and Lake Angelus had the highest percentage of coverage at 99 percent, and in Washtenaw County, Dexter had the highest rate of coverage at 97 percent. At the opposite end Hamtramck had the lowest percentage of residents with coverage—77 percent. Put differently, 23 percent had no coverage. In Detroit about 17 percent of the population had no health insurance coverage in 2015.

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Regionally, Livingston and Washtenaw counties had the highest percentages of residents on private health insurance at 83 and 82 percent. In Washtenaw County more than half of the municipalities had above 85 percent of its residents on private health insurance. In Wayne County, 58 percent of the residents had private health insurance and only a handful of communities (Grosse Ile, Northville Township and the Grosse Pointes) had more than 85 percent of its residents on private health insurance. On the opposite side of the spectrum, there were five communities in Wayne County where 50 percent or less of the population had private health insurance.

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The map below somewhat mirrors the map above, showing the percentage of residents with public health insurance, as opposed to private. With cities like Detroit, Highland Park and Hamtramck having some of the lowest percentages of private health insurance, it should only make sense that they had among the highest percentages of residents with public health insurance. Highland Park had the highest percentage of residents on public health insurance at 62 percent; Ecorse followed with 60 percent of its residents on public health insurance. Detroit and Hamtramck each had 55 percent of their residents on public health insurance.

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Clearly there is a major divide running through Southeastern Michigan on who gets health insurance and where it comes from. Generally higher income communities have more coverage and a higher proportion comes from the private sector. Lower income communities depend heavily on various public sector programs, and many residents still do not have health care coverage. Clearly these lower income citizens and communities would be severely harmed by proposals to cut public health care programs.

How Immigrants Impact Michigan’s Economy

With about 6.5 percent of Michigan’s population being comprised of foreign-born residents (an increase from 3.8 percent in 1990) their contribution to the economy is evident. From running their own businesses and employing non-foreign born residents to filling in gaps in the work force, a 2016 study by New American Economy shows just how much the immigrant population in the state contributes to the overall economy.

According to the Census Bureau, about 6.5 percent of Michigan’s population is made up of immigrants. Of that population, those that come from Asia make up majority of the foreign-born population at 50.7 percent and those that come from Northern America (Canada, Mexico, Caribbean) made up one of the smallest segments of the population at 5.3 percent (Oceana made up .5 percent).

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As shown in the infographic, of Michigan’s immigrant population, 30,086 of them were self-employed in 2014, and 8.3 percent of the immigrant population were entrepreneurs. Additionally, 15,780 Michigan residents were employed by immigrant owned firms and $608.4 billion of income was generated by immigrant businesses, according to the 2016 New American Economy report “The Contributions of New Americans in Michigan.”

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Through immigrant population employment, in 2014 there was about $20 billion in income generated and $5.4 million in taxes generated (total-combined federal and state). Asian immigrants contributed the most in income and taxes, according to the report. In 2014 Asian immigrants generated $7.6 billion in income and $2.2 billion in taxes ($574.9 million went to state and local taxes), the Middle Eastern and Northern African population generated $2.8 billion in income and $753.5 million in taxes ($213.1 million went to state and local taxes), the Hispanic population generated $2 billion in income and $473.6 million in taxes ($167.5 million went to state and local taxes) and the Sub-Saharan Africa population generated $548.5 million in income and $139.5 million in taxes ($44.9 million went to state and local taxes), according to the report. Not only did Michigan’s immigrant population contribute to federal and local taxes, but also to entitlement programs. In 2014, Michigan’s immigrant population contributed $507.5 million to Medicare and $1.9 billion to social security.

According to the report, 30 percent of Michigan’s doctors, 9,150 people, were foreign born. Software developers came in second at 28 percent (7,474 workers), followed by farm workers (27%-7,762), post-secondary teachers (22%-12,880), mechanical engineers (22%-10,502), packers and packagers (17%-3,507), computer systems analysts (22%-3,152) and food-service managers (14%-5,310). In total, the percent of immigrant workers employed in a Science, Technology, Engineering and/or Mathematic (STEM) field was 15.3 percent, according to the New American Economy report. The report also points out how there is a shortage of STEM workers in the state, with 10 jobs being available for every one employable worker.

The information presented in this post provides a broad economic overview on the contributions of Michigan’s immigrant population. To learn more about these contributions on everything from how Michigan’s student immigrant population plays a role in the economy to how age plays a factor in economic growth for the foreign-born and non-foreign born populations, please read the whole report here.

Source: http://www.renewoureconomy.org/wp-content/uploads/2016/10/nae-mi-report.pdf

Auto Parts top Michigan Exports, Imports

In Michigan, parts and accessories related to transportation-particularly those related to automobiles and trucks-were the top 10 commodities both imported and exported between 2012 and 2015, according to the U.S. Census Bureau.

In total, the U.S. percent share of commodities Michigan exports is less than the U.S. percent share it imports, however neither have risen above 5.5 percent since 2012, according to the U.S. Census Bureau. In 2015 Michigan exported $25.1 billion worth of transportation equipment, ranging from rear view mirrors to engine ignition spark plugs. In total though, according to the International Trade Administration, Michigan exported $54 million worth of goods in 2015. Canada, a North American Free Trade Agreement (NAFTA) partner, received the largest amount of commodities. In 2015 Canada received about $23.5 million worth of goods; this is equivalent to about 44 percent of the goods exported from Michigan. Mexico, also a NAFTA partner, was second to Canada in exports; in 2015 about $11.8 million worth of goods was exported to Mexico. Canada and Mexico were the only two countries who received more than $4 million worth of exports from Michigan in 2015, according to the International Trade Commission.

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Of the Metropolitan Statistical Areas (MSA) in Michigan the Detroit-Dearborn-Warren area had the highest dollar value of exports at $44.3 billion, according to the International Trade Administration. That $44.3 billion translated into 68.5 percent of the state’s share of exports. Of the data available, the Lansing-East Lansing MSA had the lowest percent share of exports at 1.3, which was equivalent to $852 million.

Of the six of the seven counties in Southeastern Michigan for which data was available (no data for Washtenaw County), Wayne County had the highest value of goods exported in 2015 at $21.2 billion; Livingston County had the lowest at $570 million.

 

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The U.S. percentage of imports reached a new peak in 2015 at 5.5 percent, according to the U.S. Census Bureau. Since 2012, Michigan’s share of U.S. imports has steadily risen from 5.1 percent. According to the U.S. Census Bureau, of the top 10 goods imported into Michigan, crude oil from petroleum is one of only two items on the list that is not directly labeled as a part related to transportation vehicle (transmission, ignition, etc.). The other good listed is seat parts related to medical chairs.

Imports from Canada ranked above all other countries as the leading source of imports to Michigan. In 2015, 36.8 percent of the goods imported into Michigan were from Canada; 35.4 percent of goods imported into the state were from Mexico. The country with the third largest percentage that Michigan imported from was China at 7.4 percent.Slide09

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The data presented in this post shows that Michigan’s imports and exports are still heavily linked on the auto industry, and the majority of the goods exported from the state are produced in the most populous region of the state. This region, the Detroit-Dearborn-Warren MSA, is located within miles to Canada and connected via a bridge and a tunnel.

Both in terms of exports and imports, this post also shows that Michigan has the strongest relationships with its NAFTA partners, Canada and Mexico. One of President Donald Trump’s campaign promises has been to re-negotiate the agreement. Both Trump, a Republican, and Democratic U.S. Rep. Debbie Dingell agree that NAFTA has harmed workers and factories. Recently, Rep. Dingell and Oregon Congressman Peter DeFazio introduced a resolution seeking a renegotiation of NAFTA to reduce the trade deficit, according to a Feb. 20 Michigan Radio article.

That resolution can be read here.

Fatal Alcohol Related Traffic Accidents Least Common in Northern Michigan

In 2015 it was counties in the Upper Peninsula of Michigan that had the highest amount of traffic accidents and deaths, per capita, from traffic accidents, according to the Michigan of State of Police. Luce County had the highest number of traffic injuries per 10,000 residents at 17.15 (40 total) and Baraga County had the highest number of deaths from traffic crashes per 10,000 residents at 1.17 (1 total). Of these injuries and deaths several were directly related to alcohol, a trend that occurred throughout the state. However, when looking beyond the per capita numbers, we see that it was in Southeastern Michigan where the highest number of traffic related injuries and deaths occurred, both where alcohol was and was not a factor, throughout the state. These high numbers can be, at least in part, attributed to the denser population in that region of the state.

In Wayne County in 2015 there were 191 traffic fatalities, 59, or 31 percent, of which were related to alcohol. Additionally in Wayne County, there were 15,713 total traffic crash related injuries in 2015. Of those injuries, 836, or 5 percent, were related to alcohol being involved in the crash. In Oakland County, of the 67 total traffic fatalities, 18 were related to alcohol (27%) and of the 10,406 traffic injuries 608 (6 %) were related to alcohol. In Macomb County, there were 17 fatal accidents related to alcohol out of 59 total fatal traffic accidents (28%) in 2015. In addition, there were 389 alcohol related traffic injuries in Macomb County; this accounted for 5 percent of the total number of traffic crash related injuries.

Of the fatal traffic accidents throughout Michigan in 2015 there were four counties where alcohol was a factor in 100 percent of the traffic fatalities. These counties were: Mackinac, Baraga, Gogebic (all in the Upper Peninsula) and Mecosta. All three of the Upper Peninsula counties had one traffic fatality, all of which were attributed to alcohol being involved in the crash. Mecosta, in Mid-Michigan in the lower Peninsula, had four fatal traffic accidents in 2015, all of which alcohol played a factor in.

Conversely, there were 31 counties in the state where there were no alcohol related traffic fatalities. However, 28 of those 31 counties had zero total traffic related fatalities. Majority of these counties were located in Northern Michigan. Traffic accident injuries related to alcohol though occurred in every county in 2015, according to the Michigan State Police.

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Business Vacancies and Employment Increase in Detroit

  • The unemployment rate across the state has remained stagnant while the rate in the city of Detroit has inched upward(monthly);
  • The number of employed Detroit residents increased, as did the City’s labor force (monthly);
  • The business vacancy rate in Detroit has experienced an overall increase since 2012;
  • The Purchasing Manager’s Index for Southeastern Michigan increased from May to June 2016 (monthly);
  • Commodity Price Index decreased for Southeastern Michigan (monthly);
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices continue to gradually increase on a month-to-month basis and experience larger growth when compared on an annual basis.slide03

According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the unemployment rate for the State of Michigan remained steady at 4.5 percent through August 2016. During this same period, unemployment in the City of Detroit increased to 11.5 after hitting an annual low of 9.1 in April.slide05

According to quarterly data provided the U.S. Postal Service, the June 2016 business vacancy rate in the City of Detroit was 25.7 percent, which was equivalent to 7,608 vacant businesses out of 29,648 total businesses. Of the data provided, the lowest business vacancy rate in the City of Detroit was in September of 2012. That rate was 23.3; there were 6,925 vacant addresses of the 29,696 addresses.

The business vacancy rate in the City has steadily grown over the last four years, except between March-December 2015 when it declined. In December of 2015 the rate dropped to a low of 24.3.

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In July of 2016 the number of employed Detroit residents rose to 218,587, an increase of 1,054 from June. Between July of 2016 and July of 2015 there was a total increase of 8,117 employed Detroit residents, according to the Michigan Department of Technology, Management and Budget.

Along with the the number of employed Detroit residents increasing over the last year, so has the labor force. Between July of 2016 and July and 2015 the labor force increased by 37,556 to a total of 249,815.

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The Purchasing Manger’s Index (PMI) is a composite index derived from five indicators of economic activity: new orders, production, employment, supplier deliveries, and inventories. A PMI above 50 indicates the economy is expanding.

According to the most recent data released on Southeast Michigan’s Manager’s Index, the PMI for August 2016 was 66, an increase of 8.5 points from the prior month. The August 2016 PMI was an increase of 9.4 from the previous year.  With this increase, the PMI for August is considered strong, especially due to the increase in new orders.

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The August 2016 Commodity Price Index decreased 9.3 points from July but increased 5 points from the prior year. The July 2016 Commodity Price Index reached an annual high due to pricing pressures and stronger demands at that time. The August decrease represents decreased pressure and demand.

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The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $107,900 in June 2016. This was an increase from $102,710 from June of 2015 and an increase from $97,340 from June of 2014.