August 2020 Real Estate Market Update – Genesee County, Michigan
We have your August 2020 Real Estate Market Update for Genesee County. We have a little bit of interesting data going forward here. We always preface with two things - we have a month ago because we have all the data. It's hot off the press. The month is closed up. So it gives us the best, freshest data. We have three years of data that way you can see the trend as the trend is your friend, as you can tell in investing because we say this every single time, right? You want to know the trend, you want to know which way the things are moving because one year of data wouldn't make any sense if we just showed you this year and didn't give you the backstory. So let's jump right into this.
Days on market.
Average days on market is 29 two years ago, 40 last year, and then 34 - so come back down again this year a little bit. The active number of homes is a one-day sample size - the number of homes that are on the market when the data was taken. Eight hundred fifty 2 years ago, 1,020 last year, and then 551 this year. So again, we've seen some crazy numbers this year, obviously crazy things happening, right? This is not surprising. We're kind of seeing this across the board in Metro Detroit, but a really, really big contraction in the number of homes on the market.
Months of inventory MOI - anytime you see this, it's really just a ratio to tell you what kind of market you're in. That's really all it is. So a month of inventory - 2 months two years ago, 2 months last year, and then under a 1 month this year, actually. So real big seller's market. Obviously, there's not a lot of homes. So prices are going up. There's a lot of people fighting over a home. What Moi stands for truly that's the ratio is at the rate homes are selling, how long would it take to sell every new home, every last home I should say with no new homes hitting the market? That's how you get that.
New homes in the market
This is actually a month-wide number. How many new homes actually listed that month? Eight hundred twenty-seven two years ago in August, 839 last year, and then 701. So again, we're still seeing a contraction in homes going forward. Clearly, we had not a lot on the market. We only had 700 new ones listed this month and we've had, these were down years as well. So again, you can see that the trajectory is down.
Price per square foot
This is, if you take this and multiply it by a square foot of your home, you're going to get the approximate value of your home. Remember, this is countywide, though, if you want true value, had to have a professional appraiser or someone on our team, come give you an actual appraisal on your property. However, this is more of a trend. You want to see the trend countywide, which way are things trending - $104 two years ago, $106 last year, and then $110 this year. So things continue to go up, obviously with the shortage of homes, prices going up.
That's really the buyer's statistics. So how many people are actually having said at a closing table and actually sign on the dotted line 511 two years ago, 534 last year on 507 this year. So this one hasn't changed a ton from the years previous. We've actually seen this number rise and it's our catch back up two years previous as we have been moving forward throughout the months here in 2020. Good to see that kind of catching up a little bit, but again, inventory down, less listed going forward, who knows what's going to happen? You know, it can't last forever. Something's gotta give at some point. The housing inventory can't just grind to a halt. So it's gonna be very interesting to see what happens, whether people are gonna build new homes, whether hedge funds released the homes they have and they rent it out. People who know don't know they can buy them anyway. So might not matter. So keep an eye on this. This is just incredible insight as to what's going on in your local community. And it's going to be very, very interesting to see this and track this as we move forward especially in 2021-2022, where I think there's really going to be some problems come about in the forbearance programs and things that are happening. I'm sure people have seen the statistics of the forbearance programs and people behind on their payments. Interesting times.
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