The 2020 Real Estate market will surely be one to remember. And with the end of summer nearly here and August data in, it’s a good time to look back and see what has happened so far.
The local real estate industry emerged gradually during the month of May from the stay at home order. In-person showings resumed (albeit with restrictions), listings began appearing steadily, and pending home sales increased.
The recovery accelerated into June as pent-up buyer demand, pent-up listing supply, and low interest rates drove increasing activity in the market. People were resuming their real estate goals after a pause. Competitive bidding situations for desirable homes in desirable locations weren’t uncommon and buyers had to act quickly when they found a house they liked. This higher level of activity has continued through July and August and into September. The annual seasonal market cycle seems to be approximately 2 months delayed so we expect this higher level of activity to last into the fall.
With fewer new listings and plenty of buying activity, median home prices have naturally increased slightly. The resiliency of our local real estate market reinforces what we all know, that Plymouth and Northville have been and remain very desirable places to live. This combined with changing buyer needs (working/learning from home, more people at home) have driven the want for larger homes, more yard space, and features and amenities like home offices, home study areas, pools, and finished basements.
Although we weren’t sure what would happen coming out of the stay at home order, we are pleased to see a strong recovery and look forward to continued strength in our local market.
Below are some charts to help illustrate the above comments. The data covers all Plymouth and Northville (incl. Oakland County Northville), homes and condos (incl. new construction), sales (not leases) and is broken out by month. The orange arrow shows the August year over year difference.
The Number Of Pending Home Sales has remained High All Summer:
The Number of Home Sales has Receded to More Normal Levels but remains higher year over year in August:
Median Sales Price has also Increased and has Continued to Increase Over the Summer:
The Number of New Listings Actually Decreased Year over Year:
With Fewer New Listings and More Pending Sales, the Number of Active Listings is Significantly Lower Year over Year: