We have your Oakland County August 2020 Real Estate Market Update. Let's jump right into this thing.
So I always preface a couple of things here. We have the month in arrears because the month has closed up so we have the data hot off the press. So we have that for you. And then we have three years of data that way we can see the trend. The trend is your friend in investing.
If we only had one year of data here, it wouldn't make any sense, right? We want to be able to see all that data. Let's jump right into this thing.
Days on market
The first one, every time - 38 days on market two years ago, 40 last year, and 40 this year as well. So again, we're seeing kind of an evening off over the last year or two as I was saying in one of our videos in the other counties that we're seeing 2019 and 2020 start to mirror each other at least on a year over year basis. So that's good to see.
The active number of homes
That's the number of homes that are on the market on that day when we took that data. Five thousand seven hundred thirty-four two years ago, 5,916 last year, and then 4,241 this year. A big decrease in homes in the market. Again, why we're seeing prices rise month of inventory, go down - seller's market, big old seller's market which I'll explain here in a second.
Month of inventory
Three months two years ago, 3 months last year, and then two months, actually under two months, like 1.8, something like that, 1.9. That means at the rate homes are selling, how long would it take to sell every last home if no new homes came on the market? And just to give you context or perspective, one to three months as a seller's market, which means there's not a lot of homes. Prices are going up as you see here, four to six months is a balanced market and seven-plus is a buyer's market, meaning there's tons of supply and buyers were having a field day. So we are nowhere near that. The supply is going down obviously. Demand is decreasing, but the supply is going down even more. The demand has really kind of jumped a bit, especially if more or less six months ago, obviously. So that's why we're seeing prices increase even more. It's being accelerated, I guess even.
New homes in the market
This is the number of new homes that actually hit the market in the entire month - 3,884 two years ago, 3,888 last year - very consistent over those two years and then 3,513. So a bit of a decrease, very similar to the percentage-wise what we're seeing it all in Southeast Michigan, all the different counties here. So that is not what I'd like to see because we were already having inventory problems here. But it is what it is, right? This is something that, as I said, in other videos, we have to stay plugged in and gotta stay tuned into what's going on. Because this is just unprecedented times with the forbearance crisis, the unemployment crisis, and things hitting in 2021 to 2022. It's gonna be very interesting. There's going to be a lot of opportunities. A great crisis leads to great opportunities. How do you position yourself? Are you positioning yourself to go invest in real estate? Are you positioning yourself to take equity out and have the cash to be able to weather the storms? What are you going to do it? Right? That's what we love answering. Our company here, that's what we love helping people do. How are you going to navigate the waters? Whether it's an up economy, a down economy, a stagnating economy.
Price per square foot
$129 two years ago, $134 last year, $145 this year. So again, an increase each year, seeing equity go up in homes. Obviously, if you want a true appraisal of your home, you need an appraiser out. We need someone on our team and some type of professional to actually get you a neighborhood report on your home. This is a countywide number. So that just really is here to show you the direction of the county itself. So that is a countywide number through thousands and thousands of homes, obviously. Several sold homes This is people actually sitting down on a table and transfer of ownership happening - 2,293 two years ago, 2,325 last year, and then 2,356 this year. We are seeing this tick up a little bit more than - I think Genesee County is only one of the five counties we've had this be a lower number, actually. So we're seeing little more closings actually than we had been over the last few years, which is a good thing to see. Like I said, if we can take one silver lining out of this it's that and all these counties that we actually have some more closings happening. However, going forward, we don't have tons on the market. I don't know if more private sales are going on here. Well, in the previous months we have had some bigger supply numbers, I guess. The normal, I guess, still low, but that could have contributed to it. But I have a feeling some private sales are going on too which happens on the investing side and on the retail side too. That's the Oakland County update for August 2020. This is something that, as I said, we've been doing for five years and we love doing this. We love bringing you the content and the information you can use to make the best decision for you and your family. So if you need anything, questions, comments, concerns, we have our Facebook channel. We have our YouTube channel. We have our Instagram, Twitter, you name it. You can find us there and we'll go get back to you as soon as we can. We appreciate your time, your attention, your energy is that is the most important asset we have. So appreciate you guys and we'll see you at the next one.