May 2020 Real Estate Market Update Wayne County, Michigan
We have your Wayne County May 2020 Real Estate Market Update. First, I hope that you are well and that you and your family are healthy and nobody affected by this disease. So that's the first thing I want to say. Second, I always preface these videos with two things. We have your three years of data that way we can see the trend. The trend is your friend. You wanna be able to see the pattern. We have the month in arrears that way we have all the data. The month is closed up. It's hot off the press. I just wanted to jump in with that quickly, but again, I hope you are well. It's the most important thing there is. This is the biggest thing. As I said, every single time, this is something that we're gonna be doing every single month. I've been doing it for five years because this is most people's biggest investment. It's the bank's asset, your liability. Regardless, it's still the biggest investment most people make. So we need to know to make sound decisions going forward, we have to have the correct information, the correct data all directly from the MLS. This is something that's going to inform you, enable you to make sound decisions. So let's jump right into this. As I said, three years of data, see the trend, the pattern. If we just gave you one year of data, it wouldn't make any sense at all.
Days on market
Thirty-five two years ago, 41 days last year, 54 this year. We're seeing that big jump up across the board and days on market.
The active number of homes
Four thousand one hundred sixty-three two years ago, 4,842 last year and 4,382 this year. We're seeing that kind of like a bell curve, a bell-shaped pattern here, really across the board as well. That is a one-day number. So when that data was taken, how many new homes or how many homes were on the market at that given time? Which is generally towards the end of the month, obviously, or right after the month is closed the beginning of the next month.
Month of inventory
Two 2 years ago, 2 last year and 5 this year. So we're seeing a doubling and a tripling of months of inventory across the board as well. This is at the rate homes are selling, how long would it take to sell every last home with no new homes coming into the market? This is a quick ratio to tell you, boom, how is the market looking? What am I looking at? If I'm a buyer going in the market, or if I'm a seller, if it's one to three months of inventory, that means you're in a seller's market. Sellers are the ones making out. There's not a lot of inventory, prices are going up. If it's four to six months, it's a balanced market. Each side is kind of getting there. Seven-plus, that means that's the buyer's market. There's tons of inventory and prices are coming down. That's what we saw after the crash, the year succeeding, the great financial crisis. As I said, it's a quick ratio to know where you're at without having to look into all this other stuff.
New homes in the market
This is the actual new listings that came out in the market in the month. Three thousand five hundred five 2 years ago, 3,577 last year, and then 2,932 this past May. We're seeing this almost exact percentage play out in every single county. A bit of a dip here with new homes coming in the market. Fortunately, it's more than we were seeing the last month or two. However, still down. We were seeing low supply here in the last few years and we're seeing them lower now. So it's going to be very interesting to see how this plays out going forward.
Price per square foot
Ninety-three dollars a square foot two years ago, $97 last year and $82 this year. Again, we're seeing this across the board with this being crushed down and contracted here in May of 2020. So this is taking your square footage and multiplying it by this number. It will give you the value of your home. Now, remember, especially in Wayne County, there's a lot of different stuff going on here, you have to have an actual appraiser or a professional, someone on our team come in to evaluate your home. Because this isn't going to mean too much to you specifically, necessarily, but you want to see the pattern. We've seen this pattern across the board where prices are now dipping. That is huge for homeowners to know, and just lock into that brain. Because if you want equity out of your home, some way shape or form, whether it's a refinance or it's selling your house, we've got to know these numbers. And this is why we do this.
Number of sold
One thousand nine hundred ninety-nine two years ago, 2,015 last year, and then 867 this past May. This is insanity. This is actual people closing, the actual number of homes being closed on. Only 867 in the whole County of Wayne. That is incredible! Sixty to eighty percent drop-off in closings across the board as well. This is just mind-boggling numbers right now. I'm very curious to see what the next quarter brings, the next few months to see what happens here with these numbers. This is a lagging indicator. This was the activity that happened over the last couple of months. This is why there are low closings. We've got higher numbers of listings now.
So hopefully these numbers will not come up and start to catch up to some of these other indicators from the previous year. I think we're in for a wild ride still guys. Just pay attention, be alert, be cognizant of what's going on around you. Be aware. We appreciate you guys more than anything. Your time, your attention is the important asset we have. This is the biggest investment most people have. We're trying to combine those two things. So appreciate you guys. If you're on the podcast, go to @legacygroupmi, on YouTube or Facebook to go question, comment, or concern there. If you know someone in that area, please share, tag them and let them know that there's data out there to help them. So again, I appreciate you guys. Hopefully, we will see you in our future videos and again, appreciate your time and energy. It's the most important asset we have. Thank you. We'll see you at the next one.