The first half of the year (and the rain) is well behind us. The summer weather has been good and so has our local real estate market. Interest rates remain low, the local economy is doing well, and inventory of new and existing homes is gradually growing so it isn’t as much of a seller’s market as it used to be.
Anecdotally, we have noticed an uptick in outbound relocations as some people who moved here following the recession have been relocating out. But others who left the area are now returning home. The migration of people for work and family reasons goes on.
The season started a little slowly this year due to heavy rain all spring ‘dampening’ the market. But after partial plateauing last year in price appreciation, it appears that prices are gradually rising again – albeit at a much more moderate pace than previously.
The below charts illustrate the 10 year Average Sales Price trend for Plymouth and Northville, City and Township. Each area has shown price increases with the City of Northville showing the largest change. There are fewer home sales at higher prices in the City of Northville which can results in a more dramatic chart. The end of year statistics will give us a better picture how much things have really changed.
Buyers and sellers often consider $/sqft ratio when valuing a home. It’s just one indicator of many when you value a home but the $/sqft ratio trend over time is worth looking at. The below charts illustrate the 10 year Sales Price by Square Foot ratio trend for Plymouth and Northville City and Township. Similar to the Average Sales Price above, the trend is upward across Plymouth and Northville:
These trend charts are useful in understanding the overall direction of prices and relative strength/weakness in the market. The Plymouth and Northville areas are continuing to perform well.
To illustrate the current low inventory which hasn’t changed much since the recession, the following chart shows days to sell for Plymouth and Northville combined: