June 2020 Real Estate Market Update – Livingston County, Michigan
We have your Livingston County June 2020 Real Estate Market Update. I hope all you've been well. Obviously, this has been just incredibly crazy time, especially here in Michigan, block lockdowns everywhere and probably more coming. So buckle up. It's time to strap in and see what we got going on here because we have a lot going on. We've had incredible data over the last few months, as I told you before, we're going to be doing this through thick and thin, giving you the most important data you have on most of your number one investments you have made in your life. Most people consider their house an asset. Truly, it's a liability because you're paying for it every month, no matter what. Even if it's paid off, you still have tax and insurance on it. So it's a very important thing for you to know what's going on because it is a liability in your life. You've got to know what you're working with. Do you need to sell? Do you need to stay put? Do you need to refinance, pull equity out?
Livingston County Market Update June 2020 - as I said, we do the month in arrears because we have all the data. It's hot off the press. We do three years of data because now you can see the trend. The trend is your friend in investing. So make sure we know what we're doing. If we only showed you this year, it wouldn't make any sense. So let's jump right into this.
Days on market
Anytime you see DOM - 30 days on market, two years ago, 42 last year and the 53 this year is a trend we're seeing across the board, every county in the last few months in every county as well, going up. Days on market are going up, prices going up. It doesn't make sense, right? Well, we're in a world that doesn't make sense. People in the world don't even know up and down, left and right. We're getting confused right now. We're getting a lot of things confused in life right now. Going against nature's law and what happens when you do that? You get a lot of confusion, right? So I'm going to try to figure this out together. It's very important that you have advisors and people around you, a team around you, people around you that are in harmony with you, that are going to help you and guide you in the right direction. Because if you were getting bad information, bad data and bad advice, that's not good.
Active homes on the market
Seven hundred seventy-four two years ago, 794 last year in 663 this year. This is a one-day data set. This is one of the day data is taken on that day. How many were active on that day? So again, that's why the trend is really important here. You can see a dip now in the number of homes that are on the market here. These are active homes on the market.
Month of inventory
MOI -2 two years ago, three months last year and three months this year. Again, this is a very quick ratio to tell you what kind of market you're in. One to three months is a seller's market. Four to six months is a balanced market. And then seven-plus is a buyer's market. So this is where, you know, we're still in the seller's market overall. It's a very quick ratio. Months of inventory is at the rate homes are selling, how long would it take to sell every last home with no new homes in the market? So again, very quick ratio to see, instead of having to look at all the data, where are we at in the cycle.
This is a month-wide number. So this is how many new listings came up during that month in the County. Five hundred fifty-eight two years ago, 522 last year, 484 this year. So again, we're seeing a decrease across the board. Every County, the last few months we're seeing this decrease. Time on the market is going up. New listings come in. The market is down. Prices are growing up. So just all over the place. As I said, a lot of things aren't making sense in life right now, but in a way, this does because we have inflation and deflation in the market. There are a lot of things going on. Asset prices are inflating prices at the grocery store are inflating, but then you're having a contraction and other areas of the economy, right? You're having a contraction of people going on, vacations, people flying and tourism. If you can have inflation and deflation at the same time, and I can't remember off the top of my head, if that's called in deflation or disinflation, cannot remember now, off the top of my head. But good to know. We have to know that when we're investing. So we got to know what we're looking at when we're investing. That's why we do this. That's why we do this for five years now to see the trends and data and see what's going on. That way. You can make the best decision for you and your family.
Price per square foot
One hundred forty-seven dollars two years ago, $153 last year and $163 this year. So again, like we said, earlier, prices are going up and this again, if you multiply this by your square footage, it's going to give you approximately the value of your home. If you want a true valuation, you got to have someone on our team, a true professional and appraiser come out and give you a valuation on your home. This is a county-wide number. I want to show you these because you can see the trend. Which way are things trending? Is it trending down or is it trending up the last few years? Because you want to invest in the trend. That's what we do when we invest right?
This is the number of people actually closing on at a closing table on a house. Three hundred fourteen two years ago, 304 last year, and 258. So we're seeing a big contraction again in the number of closings. This is really our buyer data right here. As I said, for five years now, this number doesn't change much unless there's some anomaly, some catastrophe in the market. Guess what we have this year? We had 50%, 60%, 70% down in some cases of sold property and now we're again still down what another 15%, 20%, 25%. So this is really important to be able to look at this and know what's going on, position yourself properly. As I said, do I need to pull equity out of my home? Refinance - super-low rates, obviously. Do I need to sell and take the equity and run? And again, remember that's tax-free. That's capital gains. No capital gains. It's tax-free. If you live in it the last two years to the last five years and it's under $500,000 and if you're married. I believe it's $200,000 or $300,000 if you're single. Capital gains, anything under that, it's tax-free. So remember that.
This is Livingston County June 20 20, we're in some crazy times. I appreciate you listening and tuning in. Let me know if you have any questions about any of this stuff. We appreciate your time, your attention, your energy because it's the most important thing we have especially now, obviously. I think a lot of us can tell that. Time or attention or energy is the most important thing. It's the only thing we really have. That, in independent thought, is really the only thing we have. So make use of it. Anyone who is on the podcast goes to @legacygroupmi, on Facebook and YouTube. Go put your questions, comments, concerns. We'll answer them there. We appreciate you guys once again and we'll see you on the next one.