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.

Leave a Reply

Your email address will not be published.