June 2020 Real Estate Market Update – Genesee County, Michigan

We have your Genesee County June 2020 Real Estate Market Update. Hope you guys have all been well. As I said, every month we do this, we're going to be doing this until the chickens come home to roost, right? So I'm going to be doing this for really been doing for five years. We're going to be doing it through thick and thin, at the office here, wherever we need to be to make sure you're getting the best information for you and your family. So let's jump right into this.

I always preface with two things to try to get in and get out as fast as we can too. We're not going to try to dive in for 20 minutes each. We do five counties. We want to get all the data in as best we can, as quickly as we can. So Genesee County June 2020. We do the month in arrears, we've got all the data and it's hot off the press. We do three hours of data also that way you can see the trend. The trend is your friend. That's the most important thing. You have to be able to see the trend.

Days on market

DOM - we have 36 days on market two years ago, 44 last year and 49 this year. So you can see an increase obviously in days on the market going forward. That's a theme again, we've been seeing all of this year.

Active homes in the market

This is a one-day sample size. So at the rate of the data was taken, how many homes were on the market that day? Six hundred ninety-five two years ago, 925 last year, then back down to 619 this year. You gotta take this with a grain of salt, but again, it gives you, when you see a pattern, you can see trends, you can see a few years of data, kind of see what's going on. So we obviously had a glut of homes last year, and now we're hurting for homes again. Again, it's a pattern we've been seeing, obviously.

Months of inventory

At the rate that homes are selling, how long would it take to sell every last home if no new homes are coming on the market? So we have 1 two years ago, 2 last year and then 2 this year. Just to give you guys little idea, one to three months is a seller's market means there's not a lot of homes on the market. Prices are going up. Four to six months is a balanced market. Seven-plus months is a buyer's market. That's what we had 10 years ago. Eventually, we're going to be getting back to that. We're going to a buyer's market at some point here. I would think sooner rather than later. But again, I think we should have had a crash in 2014, 2015, 2016, and a dead cat bounce, and we should have seen a crash there as well. But we didn't. So who knows what the FED can do? So we will see. But this gives you a quick idea of where you're at in the market cycle basically.

New homes in the market

Seven hundred seventy-two 2 years ago, at 852 last year and then 723 this year. This is a month-wide data set. So this gives you all the new homes that are actually put on the market in that month. We can see it's the lowest it's been in a couple of years here. This is a trend that's continuing to go forward. Tons of signs of lower inventory, we've already had low inventory and now we're just seeing it happen more and more, which is a little unnerving. It is what it is, right? So we got to deal with it somehow was.

Price per square foot

You can take this and you multiply it by your square footage, it's gonna give you approximately the value of your home. But remember, this is a county-wide number as well. So if you want a true appraisal on your house, you have to get a real estate professional, someone on our team, or an appraiser over to your house to get the actual value. But this gives you an idea of which way things are heading for your county. Ninety-eight dollars a square foot two years ago, $101 last year and $105 this year. We have seen a little bit increase when supply is down, you have prices go up. You're seeing a lot of inflation and deflation at the same time actually in these markets. So you're seeing people struggle because buyers are dropping from the face of the earth and you're seeing sellers drop a little bit as well. So that's we're seeing a lot of weird numbers, like why are days on the market going up? Prices are going up, right? So there's conflicting data. These are things that are going to flush themselves out over time. We have to be aware of what's going on and know the seller "Hey, maybe my I'm getting a little bit more for the house, but maybe I'm sitting on the market a little bit longer. Maybe I got to price correctly upfront." You all should be doing that. Right? But these are things you have to make sure that your agent knows, that you know, your marketing professional knows exactly what they're doing when you're going into a transition like this, a transaction.

Sold

This is really the buyer data right here. Five hundred twenty 2 years ago, 533 last year, then 384, only 384 this year. We've seen a huge decrease here over the last few months in the sold category. So the buyer fooled usually doesn't change too much unless there's a catastrophic event. I've been saying this for five years and sure enough, we get catastrophic events. This number has been cut in half. It's been cut 60-70% in some months. And again, nowhere, it's cut. What is it - 20-30%. It's been cut again this month. These are hottest months of the year, right in general in Michigan.

So this is the data for Genesee County. As I said, if you need a professional insight in your house, an appraisal, actual valuation, and to know what's truly going on and maybe talk more about the market, please let us know. Please contact me. Please contact our team. I appreciate you spending your time, your attention, your energy with us because it's truly the most important asset we have. And we just appreciate you. So if you're listening to the podcast, go to @legacygroupmi, on the YouTube channel and Facebook that way we can get your questions, comments, concerns there. We appreciate you guys and we'll see you on the next one.