February 2020 Real Estate Market Update – Oakland County, Michigan
We have your February 2020 Oakland County Real Estate Market Update. Let's jump right into this thing. I know there's a lot of crazy stuff going on right now. The Coronavirus is wreaking havoc everywhere. This is super important and the reason the show must go on. We're doing this because of a couple of things - housing is most people's biggest investment. Housing provides a lot of people their retirement and housing is a lot of people's biggest source of equity and that's why this is important. That's why this must go on. That's why people need to be informed to see how is this gonna affect those that source for me, that source of equity. What do I need to do going forward? That's why this information is important. Now the data hasn't changed too much yet obviously because this is all in arrears and we'll see how what happens going forward. But as I said, the show must go on.
We always have three years of data that way we can see the trend. The pattern is the most important thing. One year of data's not going to do anything for you. As I said, the month in arrears because all the data is hot off the press and we're ready to go. So let's jump right into this thing.
Days on market
We had 61 days in the market two years ago, 65 last year and 70 this year. So we're seeing a little bit of increase throughout Southeast Michigan, increase days on the market a home sitting there.
The active number of homes
This is a one-time data source where it's a one-day sample size. When that data was taken, how many were active on that day? This is where the trend is important. Three thousand five hundred thirty-seven two years ago, 4,127 last year and then 3,701 this year. So a little bit of a decrease, back down this year. These are still really low numbers, but again, when things are sitting you would think there'd be more inventory.
Months of inventory
MOI means that the rate homes are selling, how long would it take to sell every last home with no new homes reaching the market or coming on the market? It was 3 two years ago, three last year, and then just under three this year. These might've been as well are rounded numbers, so we'll say that is about three as well. Just to give you guys context on what that means, it's a very quick ratio to know what kind of market we're in. One to three months is a seller's market, meaning there's not a lot of homes and the prices aren't going up. Four to six months is a balanced market. Seven-plus is a buyer's market, meaning there's a lot of homes to choose from and prices are coming down. So you can guess 10 years ago we are in that market and now we've been in the last three, four years in a seller's market.
This is the number of new listings that came on during that entire month. So this is different than this one, 2,087 two years ago, 2,069 last year, very similar, but then 2,169 this year. More homes came on the market this year and we're seeing that's a trend throughout Southeast Michigan as well. If we're gonna see how that plays out going forward, more homes coming to the market. We'll see at the same time that there's all this craziness happening.
Price per square foot
One hundred twelve dollars two years ago, $117 a square foot last year than $121 a square foot for this year. If you took this number and multiply by your square footage, you'd get approximately what your home is worth. Now, remember, that's county-wide data. The trend here is more important. You're seeing the equity is going up in your area. However, if you want to get an actual evaluation in your home, you're not going to go to Zillow or you know some garbage like that. You have to have someone come in and appraise your home. An appraiser, someone on our team, a professional to come to give you a valuation on your home. Use the data around you, you're going to come into a tight radius, probably a mile around your home. Or maybe it might just be your subdivision or it might be some other big parcels of land that are just like yours. You got to find those, you have to do some actual due diligence on that. So that's very important.
The last one here is the number of sold properties. People have closed on the property, sat down and signed at closing. One thousand two hundred one two years ago, 1,317 last year and at 1,297 this year. So again, down a tiny bit, but pretty stable. This number generally stays pretty stable depending on what kind of market we're in. If there's a recession or something really big happening, then that will change. However, depending on the listing supply, it can fluctuate a little bit, but it generally stays somewhat similar because people are always having to move no matter what, job transfers or whatever it may be. So that number stays pretty consistent. The listing supply is generally what moves.
So that is your market update for February 2020 in Oakland County. I appreciate you guys joining us. As I said, this is super important and did I say Oakland County in the beginning? I don't remember now but I feel like I'm losing my mind. However, as I said, this is super important because of the times we're living in right now. This is super important to know going forward what we're going to be working with and what you're going to be working with regarding your biggest investment, most of your biggest investments. So I appreciate you guys, your time, your attention, your energy. If you're on the podcast and you're listening to this, go to @legacygroupmi, on YouTube and Facebook, it'll be there. You can question, comment, concerns. Share it with somebody who might want to know this information. We're going to continue bringing this to you. I appreciate you guys joining us and not dialing or calling in, but just joining us, chatting with us and spreading the message. We're going to continue doing this and giving you the most up-to-date information that way you can make decisions for you and your family that suits you. So I appreciate you guys, your time, your energy, your attention. It's the most important thing we have. We'll see you at the next one.