June 2020 Real Estate Market Update – Oakland County, Michigan
We have your Oakland County June 2020 Real Estate Market Update. I hope you and your friends and your family have been surviving, doing well, healthy over the last few months. It's been incredibly crazy times obviously. It's one of those things where the show must go on. We must continue to live our life, obviously, and do the things that we need to do in order to survive and thrive. This is one of those things. Most people's biggest investment. There are different competing parties that will say a house is an asset, a house is a liability. On a general balance sheet. It's an asset, but truly it's not. It's a liability, right? Because you're paying every month for it. Whether it's paid off or not, you're still paying taxes and insurance. It's still something that you are paying for. So it's truly a liability, but it does lie in your asset column. So you have to understand the balance sheet. Again, a quick little side tangent of what we're doing here today, but that's kind of the secret of the balance sheet and your financial statements.
We did videos recently actually on your financial statement, which is your report card as an adult. So if you don't know anything, that means please go check one of those out the videos. You'll see it just below here, go check that out. We talked about the financial statement and kind of how this all works, your liabilities, and your assets. So let's jump right into this thing - Oakland County June 2020. That's why you're here. We have three years of data and the month in arrears because now we have the data hot off the press. We had three years of data because remember, the trend is your friend. We want to be able to see which way things are moving because in investing, we want to invest with the trend instead of against the trend, right? Always want to be doing that.
We will be doing a couple of different things. Actually, we'll be doing this continually doing this. Actually, we're going to always go to be doing this. This is something that we've been doing for five years now and we're going to continue to do it through thick or thin. As I said, we're going to continue doing this and making sure that we're getting you the data you need to make the decisions for you and your family. You might need to sell, take all your equity off the table. You might need to refinance, take some of your equity off the table. Or maybe you stay put, right. That's why this is so important. So let's jump right into this.
Days on market
That's 32 days on the market two years ago, 36 days last year and 46 this year. Across the board, we're seeing this exact same thing play out. We're seeing more days on market. We're seeing less inventory and higher prices a lot of times. We're seeing it more days on the market. So a lot of things going every which way, and that's why you have to kind of stick with it. Make sure you're paying attention and figuring out what's best for you and in training. Some of these things you can't decipher, right? That's just the market. You can't decipher everything, but you have to do the best with what you got. That's why we're doing this.
Active number of homes in the market
This is a one-day sample size. How many homes are on the market on the day the data was taken? Four thousand eight hundred sixty-eight two years ago, 5,613 last year, then 4,406 this year. Again, a decrease going forward can be interesting to see how it plays out.
Month of inventory
MOI is at the rate, homes are selling, how long would it take to sell every last home with no new homes coming in the market? We had 2 two years ago, 3 last year and 3 this year. Just to give you perspective and some context - one to three months is a seller's market, four to six months is a balanced market. Then seven-plus is a buyer's market. So seven-plus months being there are a lot of inventory and house prices are coming down. Right now, we're still in a seller's market, meaning there's not a ton of inventory. Prices are still up. As you can see, prices are still high, as you can see the price per square foot. We see the inventory going down and has been down for a number of years. That's why we're still in a seller's market. Pay attention to that as a ratio, something that you don't have to comb through the data all the time is what I'm trying to say. That's something that where you can just get that - boom, you know exactly what kind of market you're in. Because just for example, as a seller, you want to sell on a seller's market, right? One to three months inventory, that's the market we've been in the last few years. That's the kind of market you want to sell in. You don't want to be buying generally in a market like that. You won't be buying like the buyer's market when they're seven, eight, nine, ten months of inventory. That's when you get a great deal.
New homes in the market
This is a month wide number of how many homes actually came on the market during that entire month. Four thousand three hundred thirty-four two years ago, 4,063 last year, and then 3,630 this year. So definitely a significant decrease this year. Obviously there's just a lot going on across the board. We've been seeing that every County over the last few months, less of a decrease and we've been seeing in the last few months, which is good. So it's good. It's good to see that number coming up a bit.
Price per square foot
One hundred thirty-two dollars two years ago, $138 last year, and then $135 this year. So this has actually been pretty consistent, pretty level over the last few years, which is good to see. If you took this number and multiply it by your square footage, you could approximately get your home's value. Now, again, this is a county-wide number. So if you want a true valuation, you have to have someone on our team and a true professional come and value your home, or you need an appraiser or somebody actually come give you the true value of your home
This is your buyer data really. The buyer pool doesn't change all that much usually unless there's a catastrophic event or a Black Swan event like I've been saying for five years, that's exactly what we've had. So we're going to check this one out and see what's going on here. Two thousand one hundred ninety-six two years ago, 2,168 a year ago. As I said, it doesn't change much, usually. Boom, all of a sudden 1,740 this year. Again, we have fewer homes in the market, obviously, craziness going on all around us. We have fewer people physically closing, actually closing on homes.
So that is your Oakland County at June 2020 Market Update. I appreciate you guys spending time with us here. We try to get you guys in, get you out, give you the information that you need so you can make the best decisions for you and your family. So as I said, I appreciate you guys more than anything. If you're on the podcast, go to @legacygroupmi, go put your questions, comments, concerns there. We'll answer them. We look forward to seeing you guys in the next one.