August 2020 Real Estate Market Update – Wayne County, Michigan

We have your Wayne County August 2020 Real Estate Market Update.

Let's jump right into this thing.

I always talk about two things every single time. We have two years or three years of data that way we can see exactly what's going on and we need the pattern. We need a trend. We need to be able to see what's going on here. If we just gave you this year's data in 2020, it wouldn't make any sense. So we want to be able to see what's going on here in August 2020. We have the month in arrears that way we can see what's going on. The data is all wrapped up. We have it hot off the press, and we can give that to you. So let's jump right in.

Days on market

Every single time starting days on market. Two years ago, 33 days on market, last year 35, this year 39 days on market. We are increasing every single year. Not exactly sure why when we have crazy low inventory, which the rest of the numbers bear out. So who's to say really don't have a good answer for you there. How could you, because like I said, the rest is data. It doesn't make any sense, but what has this year?

The active number of homes in the market

This is a one-day data set. This is how many homes were on the market on the day that data was taken? Five thousand one hundred eighty-eight 2 years ago, 5,924 last year, and then 3,858 this year, incredibly low as just staggeringly low. It's kind of hard to put in words, to be honest. We're almost at 6,000 last year and we got well under 4,000 here. I mean, that's really incredible.

Month of inventory

That's the rate at homes are selling, how long would it take every last home to sell if no new homes came out in the market. And I'll give you context here in a second, but two months 2 years ago, 3 months last year. And then it's actually under two this year. Basically, the context is one to three months is a seller's market meaning there's a very limited supply, prices are going up like we're seeing now. Four to six months is a balanced market. And then seven-plus is a buyer's market meaning there's tons of inventory and prices are going down. So with that in mind, new homes.

New homes on the market

These are homes that actually were listed on the market this month of August. Three thousand eight hundred ninety-four two years ago, 3,835 last year. So we're getting very consistent, seeing these numbers really consistent across the board in all the counties, but then 3,056. So a big decrease this year, August to August of what's being listed actually going forward. We're seeing this across Metro Detroit. It can be very interesting to see what happens going into Q4 here and see what happens. Very, very interesting, so stay tuned, stay plugged in like I've been saying.

Price per square foot

Ninety-five dollars a square foot two years ago, $106 last year, and then $111 this year. Again, we're seeing this trend very similar across the board. If you take this and multiply it by your square footage, it's going to give you approximately what your home is worth. Now, this is county-wide data, remember. So if you want an actual appraisal on your home, you have to have someone on our team, an appraiser, an actual professional, come to your home, give you a neighborhood analysis of what's going on in the value of your home. But this, again, just shows you the direction, right? The trend of where things are going in your local area, the county.

Number of sold properties

This is the number of people actually at a closing table, number of deeds, actually changing hands here. Two thousand two hundred thirty-two 2 years ago, 2,078 last year, and then 2,182 this year. We've seen this bump up compared to the last couple of years. Every single county has done the same thing except Genesee. So that's good to see. The silver lining in all of this is we have had a little bit more activity. However, in the last few months, I guess there was a big glut of homes coming on the market all at once because of what happened in the spring. So summer months kinda got slammed. We're seeing things close up now, just not sure how it's going to happen going forward though. Because again, we have a lot less going on here. So stay tuned, stay plugged in. We're in for a wild ride.

Forbearance - that's ramping up, delinquencies ramping up, eviction moratoriums still in effect in a lot of places. Unemployment numbers are crazy, 2021 is going to be a crazy ride, 2022 is probably gonna be a crazy ride. Who knows? There might be crazy years beyond that as well, but that's another story for a different day. So just be aware, be alert, know what you're getting into. This is why we do these videos. I've been doing these for five years that way people can visit position themselves correctly for what's going to happen, what's coming in the future. Do we need to invest in real estate? Do we need to, you know, rental real estate, do we cash out of our home so we can weather volatility. These are why we do these things. This is why it's important to follow what's going on in your area and know which way things are going, know which direction things are moving.

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