Housing Prices Continue to Increase in Metro-Detroit

  • From March to April 2016, the unemployment rate across the state and within the city of Detroit declined (monthly);
  • The number of employed Detroit residents increased (monthly);
  • The Purchasing Manager’s Index for Southeastern Michigan increased from March to April 2016 (monthly);
  • Commodity Price Index remained stabled for Southeastern Michigan (monthly)
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices have increased by about $10,000 since February of 2014.

Detroit Unemployment

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 to 4.3 percent in April 2016; the unemployment rate was 5.1 percent in March. During this same period, unemployment in the City of Detroit marginally increased from 11 percent in March to 9.1 percent in April.\Detroit Employment

In Spring of 2016 the number of employed Detroit residents began to stabilize. In March of 2016 the number employed was 217,027 and in April of 2016 that number slightly increased to 217,078. In April of 2015 employment numbers for Detroit residents began to rise, and have since peaked.

Although the sheer number of Detroit residents employed has increased, data also shows that the Detroit labor force decreased to 238,790 in April 2016; it was 243,813 the month prior.

Auto Employment

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from April 2015 to April 2016. In that time frame the number of people employed in this industry has increased by 800, from 93,400 to 94,200.

PMI

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 April 2016 was 62.7, an increase of 3.6 points from the prior month. The April 2016 PMI was a decrease of 3.7 from April of 2015.  Despite the decrease from April 2015 to April 2016, the current PMI represents a growing economy that is currently being pushed forward because of improvements in new orders, employment and production.

Commodity Price Index

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 50 points in both March and April of 2016. The April 2016 Commodity Price Index is a decrease of 7.9 points from the prior year.

Detroit Home Prices

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 50 points in both March and April of 2016. The April 2016 Commodity Price Index is a decrease of 7.9 points from the prior year.

Employment in Detroit Growing, While Unemployment also Increased

  • From December 2015 to March 2016, the unemployment rate across the state remained stable while the city of Detroit’s experienced a slight increase (monthly);
  • Employment in the city of Detroit increased by 8,407 from March 2015 to March 2016 (monthly);
  • The Purchasing Manager’s Index for Southeastern Michigan increased from February 2016 to March 2016 (monthly);
  • Commodity Price Index increased from February 2016 to March 2016 for Southeastern Michigan (monthly)
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices are about $6,900 higher than in January of 2015.

Detroit Unemployment

According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the unemployment rate for the State of Michigan increased to 5.1 percent between December of 2015 and March of 2016. During this same period, unemployment in the City of Detroit marginally increased from 10.9 percent in December to 11 percent in March.

Detroit Employed

Since March of 2015 the number of employed Detroit residents in the labor force increased by 8,407, to a total of 217,137 in March of 2016. While the month of March in 2015 had the lowest number of Detroit residents employed in the labor force in the last year, March in 2016 has had the highest number of people employed for 2016.

The conundrum of increasing employment and increasing unemployment likely is a result of more people entering the labor market in the city, creating a situation in which more are employed, but more are also looking for work.

Detroit Manufacturing

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from March 2015 to March 2016. In that time frame the number of people employed in this industry has increased by 300, from 93,100 to 93,400.

PMI

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 March 2016 was 59.1, an increase of 7.1 point from the prior month. This increase is largely representative of the region’s employment, new order and production indexes increasing.

The March PMI was also a decrease of 5.4 from March of 2015.

Commodity Price

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 50 points in March 2016, which was 1.6 points higher than the previous month and exactly the same as what it was in March of 2015.

Detroit Home Price

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 $103,590 in January 2016. This was an increase of $6,890 from January of 2015 and increase of $9,670 from January of 2014.

Detroit’s unemployment rate on the decline

  • From March 2015 to April 2015, the unemployment rate across the state and in the City of Detroit’s decreased (monthly);
  • The Purchasing Manager’s Index for Southeast Michigan increased from April 2015 to May 2015 (monthly);
  • Commodity Price Index decreased from April 2015 to May 2015 for Southeast Michigan (monthly);
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area continue to increase.

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 from 5.7 percent in March to 4.8 percent in April. During this same period, unemployment in the city of Detroit also decreased from 11.7 percent in March to 10.2 percent in April.

From March to April, the number of people employed in the city of Detroit increased by 744, leading to a total of 210,161 people employed in April.

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from April 2014 to April 2015. From March to April the number of people employed in this industry declined by 1,400, to a total of 105,100. Employment in this industry in the Detroit Metropolitan Statistical Area has been decreasing since February.

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 Purchasing Manager’s Index, the PMI for May 2015 was 66.4, an increase of 0.1 points from the prior month. It was also an increase of 6.4 from May of 2014.

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 $101,530 in March 2015. This was an increase of approximately $3,130 from the average price in February 2015. Since March of 2014, prices have increased by $3,330.

 

Unemployment numbers decreased with the holiday season

  • From October 2014 to December 2014, the unemployment rate across the state and in the City of Detroit’s decreased (monthly);
  • The Purchasing Manager’s Index for Southeast Michigan increased from November 2014 to December 2014 (monthly);
  • Commodity Price Index decreased from November 2014 to December 2014 for Southeast Michigan (monthly);
  • Wayne, Macomb and Oakland counties experienced decreases in the number of monthly building permits pulled.

Slide02According to the most recent data provided by the Michigan Department of Technology, Management, and Budget, the unemployment rate for the state of Michigan decreased from 7.1 percent in October to 6.3 percent in December. During this same period, unemployment in the city of Detroit also decreased from 15.1 in October percent to 12.2 percent.

Slide04

From November to December of 2014, the number of people employed in the city of Detroit increased by 1,775, leading to a total of 287,228 people employed in December.

Slide06

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from December 2013 to December 2014. From July 2014 to November 2014 employment in this industry has increased by 9,000 from 91,600 to 100,600. However, from November to December, that number stagnated, remaining at 100,600. This was still the highest it had been over the last year.

Slide08

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 means the economy is expanding.

According to the most recent data released on Southeast Michigan’s Purchasing Manager’s Index, the PMI for December 2014 was 64.2, an increase of 7.4 points from the prior month. As compared to December 2013, there has been an increase of 13.6 points.

Slide10

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 54.2 points in December 2014, which was 7.6 points lower than the previous month and 1.9 points higher than December 2013.

Slide12Slide13Slide14

The above charts show the number of residential building permits obtained each month in Oakland, Macomb, and Wayne counties from January 2013 until December 2014. These numbers are reported by local municipalities to the Southeastern Michigan Council of Governments and include single-family units, two-family units, attached condos, and multi-family units.

 

Oakland, Wayne, and Macomb counties all experienced a decrease in the number of building permits pulled from November 2014 to December 2014. These declines are largely seasonal, due to weather. Only Wayne County issued more permits in December 2014 than it did in December 2013. Oakland County issued 131 permits in December of 2014, a decrease of 10 compared to November 2014 and a decrease of 18 compared to December 2013. Macomb County issued 31 permits in December 2014, 47 fewer than in November 2014 and 52 fewer than in December 2013.

Wayne County issued nine fewer building permits in December than November of this year; in total 52 permits were pulled. This is seven more than the number pulled for the county in December 2013.