April 2020 Real Estate Market Update – Genesee County, Michigan
We have your April 2020 Real Estate Market Update for Genesee County. Obviously real estate life is falling off a cliff right now. So what does it mean for you? More importantly, the biggest investment in your life for the vast majority of you, what does it mean? Let's dive right into it here. Don't wanna waste any time. So let's dive right in and see exactly what's going on here.
We always preface with three things and it's three years of data that we can see the trend. It's really going to help here because of what's going on in the markets. It's really gonna help you to see what's going on. And then we have the month in arrears because now we have all the data, just like the government bringing up the jobs report at the beginning of the next month, right? I have all our data here.
Days on market
Fifty-Six two years ago, 58 last year, and then 50 this year. So we're going to see the numbers kind of - for the last three or four years - we've seen very consistent numbers and really consistent seller's market, really going into a seller's market. Now we're gonna start to see numbers jumping all over the place. So bear with me here.
Active homes in the market
This is a one-day snapshot. How many homes are on the market on that given day? Five hundred fifty-nine two years ago, 718 last year, and then back down a little bit to 662 this year. But we've seen that that was then trending up though and now it's going down.
Month of inventory
Two months 2 years ago, two months last year, three months this year. Just to give you guys some context, remember, one to three months is a seller's market. Four to six is a balanced market and seven-plus is a buyer's market. We're trending up now in every single county and this has been staying steady, consistent. Now we're finally trending up. This actually is a little bit above three I believe. So we're trending up now and it's going to be very interesting to see going forward what's going to happen. Remember, there's a lot of people and experts can't agree on what is going on. No one has seen this before. And I mean knowing the last pandemic was you really probably want the Spanish flu a hundred years ago. I mean things are so different now that people have no idea. You talked to one expert like a Ken McElroy and then a lot of the Rich Dad advisors, they think the market's going to go through the floor. Then you talk to other people and they think the market's going to be super strong and we have low inventory, which we do. You're going to see a low inventory and then it's gonna lead to higher prices and things going to be okay. It's anyone's guess. I tend to believe that the market - we just haven't seen the catastrophe that's hit yet because we're so close to the epicenter of it. I do think things will end up going down eventually. But let's go through the rest of this year.
New homes in the market
This is a month-wide number and this is going to boggle your mind. Six hundred fifteen two years ago, 733 last year, 173 this past month in April in Genesee County. So just absolute debacle, an absolute massacre in the markets when it comes to the home with being put on the market. Obviously, things are shut down here and that's gonna be really, really interesting because going forward, yeah, it's going to be inventory shortages like we've never seen before. However, at the same time, what happens in six months from now when people go back to their job that's not there anymore, things like that. So it's just going to be very interesting to see what happens here. I'm very "intrigued" maybe it is the right word to use as to what happens going forward here.
Price per square foot
Ninety dollars a square foot two years ago, $95 last year, then $95, stayed steady this year. Again, shortage,-amended inventory. We're so close to the epicenter that things really haven't moved that much yet. Months of inventory is at the rate homes are selling, how long would it take to sell every last home with no new homes coming in the market by the way. And then this price per square foot - if you take your square footage and multiply it by this number, it's going to get you approximately the value of your home. Obviously, you need to have someone on our team or an appraiser come in and actually give you the value of your home. Because remember, this is a county-wide number her.
Number of sold homes
Three hundred fifty-nine two years ago, 412 last year and then 233, down a lot this past month. We had one of our transactions fall apart. Really like the first day the markets collapsed or I think went on the automatic shutdown in March, mid-March, end of March. So we only had one, fortunately. But again, that was happening to a lot of people. I saw a lot of people losing deals and a lot of homeowners and homebuyers pulling out of transactions and things like that happening.
So again, that's your market for Genesee. There's a lot of insanity going on right now guys. This is something that you have to start paying attention. This is most of your biggest investment. Not necessarily an asset because you're probably paying for it every single month and I don't think you're receiving income from it. However, it's such a huge thing in our life right now. Real estate is a huge indicator of the economy, right? So being up to date with that and knowing where your equity stands in your house are massively important. I appreciate you guys sticking with us through all this. As I said, no matter where we are, we're still gonna give you these updates that way you have the information you need to be armed to make the right decisions for your family. If you're on the podcast, go to @legacygroupmi, on our Facebook channel or YouTube to go question, comment, share, tag someone. We appreciate you guys, your time and energy. It's the most important thing we have, especially in times like this. We look forward to seeing you at the next one.