March 2020 Real Estate Market Update – Wayne County, Michigan
We have your Wayne County March 2020 Real Estate Market Update. Let's jump right into this thing.
First off, I hope you are well, your family is well. Obviously, there's been insane times over the last month since we saw each other last on the market updates. I just appreciate you joining me here and checking the stuff out because I believe this is super, super important. Most people's biggest financial investment they're going to make in their lives. This is a lot of people's retirement. It's their ATM, it's their lifeblood in a lot of cases. So it's just super important to know this information and be armed with it so you can make the best decisions for you and your family. So let's jump right into this thing.
Days on market
We have days on market, DOM. The average days on market was 51 two years ago, 52 last year, 55 this year. Things are going up a little bit. We're seeing that kind of across the board here in Metro Detroit just because of what happened in March. Things are sitting now a little bit longer. I think that's going to change going forward.
Active number of homes in the market
This is a one-day sample size. How many homes were on the market when that data was taken? Three thousand seven hundred six two years ago, 4,327 last year and then 4,536 this year. So again, this number has been all over the board in Metro Detroit, all the different counties. That's not the number I'm totally worried about. I'm gonna show you that one in a minute.
Months 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 on the market? That is 2 two years ago, three last year and then three this year. Just to give you context, one to three months is a seller's market and then four to six is a balanced market. Then seven-plus is a buyer's market. Meaning there was a ton of inventory. There are not as many buyers out there, opposite of what we've had. I have a feeling we're going towards that more of the seven-plus. We'll see, though But that's kind of my crystal ball. That's what it's telling me. So let's put it at that for now.
New homes in the market
This is a number of new homes that are actively listed on the market in March. This is a month-wide number, 2,844 two years ago, 2,829 last year. So again, very constant. Then 2,371 this past March. So a huge drop-off really these last 10 days, last 14 days of March really stalled this out. Again, we've seen that across the board. That's a huge drop-off. We already had inventory shortages. Now we have even more. The only silver lining in terms of real estate market goes is that we have probably a 25% to 40% drop-off in buyer applications so far. We already had low inventory, but there's gonna be fewer buyers out there now too though, at least for the foreseeable future. So we'll see what happens going forward. We're going into the hottest time of year in Michigan, but again, we're a lot of extenuating circumstances. Obviously with everything that's going on in the world. It's going to be very interesting to see how this plays out going forward with the rest of this data.
Price per square foot
Eighty-one dollars two years ago, $82 last year, $91 this year. So things were going up because again, this is a lagging indicator. This is what was happening in contracted homes in January and February. Then closing in March. So we still had equity and things are rising countywide. This is a number that if you take this and multiply it by your square footage, you're going to get approximately your value. You still need an appraiser or someone on our team of real estate professionals to give you a valuation on your home. But this gives you an idea of which direction equity is trending in your county.
This is the number of people actually closing on a property, actually purchasing the property or selling a property at the closing table. One thousand seven hundred fifty-nine two years ago, 1,607 last year, a little bit of variation blow up, a little bit drop-off and then 1,525 this year. Again, decrease a little bit. This is a lagging indicator, though. What was contracted in January, February, and then closed in March? So it's gonna be very interesting to see what happens with that going forward as well. I'm feeling that number is going to be changing in the future as well.
I appreciate you guys more than anything. That's the Wayne County Update for March 2020. I know we get in quite a blitz through these and if you have any questions, please throw them in there. We'll answer them. But I want to get you this data, the most important investment most people have. And I want to get this data out to you guys that way you can take it and do what you need to do with it. I just appreciate you guys joining. Your time's the most important and valuable asset we have. So I appreciate that more than you know. We look forward to seeing you in the other counties in the area. We have five counties we do every single month. So go check those out. If you need that information or you know someone who needs it, please share it with them, and we look forward to seeing those. We look forward to seeing you next month. Talk to you soon.