June 2020 Real Estate Market Update Wayne County, Michigan

We have your Wayne County June 2020 Real Estate Market Update. I hope you and your family have been doing well, surviving, and thriving over the last handful of months. There's obviously been a lot of craziness going on in the world, in the markets. And we've been doing this for five years now. As I said, we're gonna be doing this through thick and thin, getting you the information that you need to make the best decisions for you and your family regarding most people's biggest investment they have. So let's jump right into this. Like I said, Wayne County June 2020 market update.

We have three years of data way we can see the trend. The trend is your friend in investing. You want to be able to invest with the trend and not against the trend. We have the month in arrears because we have the data fresh off the press, right? It's ready to go. You can't do the middle of the month. You have to be able to look behind you a little bit and see what was happening as the month is wrapped. So let's jump right into this.

Days on market

DOM, anytime you see that. Thirty-One days in the market two years ago, 38 days last year and 47 this year. We've been seeing almost these verbatim numbers throughout all the counties. I'm trying to think about all the five counties we do in Southeast Michigan and really over the last handful of months as well. So we've been seeing a steady uptick over the last few years in time on market.

Active number of homes on the market

It's a one-day sample size of how many active homes were on the market the day that data was taken. Four thousand three hundred forty 2 years ago, 5,211 last year, and then back down to 4,242 this year. So a big decrease. We're seeing this across the board as well, a big decrease in homes on the market when the data was taken. Remember that.

Months of inventory

MOI stands for months of inventory, which is at the rate home they're selling, how long would it take to sell every last home without any new homes coming on the market? Two months 2 years ago, three months of inventory last year and three months of inventory this year. Just to give you context, one to three months is a seller's market. Four to six months is a balanced market. And then seven-plus is a buyer's market. Buyer's market meaning there's a lot of homes on the market and prices are coming down. We're still in a seller's market. One, to three months, means there's not a ton of inventory, obviously, as we can see, not a ton of inventory. Prices are going up or staying up. That's why we're seeing we're still in a seller's market. So generally you want to invest with the trends you want to sell when we're around a seller's market, one to three months. Or you want to buy conversely in a buyer's market when we're seeing seven, eight, nine, ten months of inventory.

New homes in the market

This is your month-wide number - 3,477 homes two years ago, 3,638 last year, and then 3,171 this year. So this is a month-wide number. How many new homes actually came into the market during the entire month? So again, we're seeing this verbatim pretty much percentage-wise, a drop in the number of homes in the market. Now, this number has come up comparatively as of a few months ago. Fewer homes are obviously coming on the market. Now we're seeing these numbers start to climb back up and reach their 2018, 2019 levels. But we still have a little ways to go, obviously.

Price per square foot

Ninety-four dollars two years ago, $101 last year and $102 this year. So again, a steady little increase over the last few years. And this, if you take this number and multiply by your square footage, it'll give you approximately what the value of your home is. Now remember, the trend, this is a county-wide number and Wayne County is a massive county, right? So be very careful. You have to get an actual appraiser or someone, a professional, someone on our team to actually come value your home because this is just a countywide number. So it's not going to do you much good unless you have someone actually come to your home. This is more, I show this because you want to see the trend. Which way is my County trending?

Number of sold properties

People actually closing physically closing on a property. This is your buyer data set. It doesn't change much unless there's a catastrophe, a Black Swan event, which is exactly what we have. And that's why we have a big decrease in numbers this year. Two thousand one hundred three two years ago, 1,949 last year, and then 6,046 this year. Not too bad. This number has been in the toilet for the last few months. So we're coming up again a little bit from the last few months, which is good. It's good to see, but we are still way down compared to what we have then so we are hurting still and it can be interesting. Very, very interesting to see what happens going forward.
So stick here, stick on our channel. We put out a lot of content, obviously. Market updates, we got an Insider Report coming later this week. We haven't done one of those actually in a month or two. So we've got a lot of good stuff coming. We're gonna dive deep into some kind of 10 subjects and what's, what's the plan going forward, what's the market going to look like going forward. I've got some thoughts for you. You might not like them, but we gotta deal in reality. Right? So appreciate you guys. If you're on the podcast (@legacygroupmi) go to the Facebook and YouTube channel there. Put your questions, comments, concerns, and we'll answer them. We appreciate you guys. You're like I said, your time, your attention, your energy is the most important thing we have. And we'll see you guys on the next one.

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