This order has meant the end of in-person showings and open houses – essentially putting a hold on our usually busy Spring season. There are very few new listings and many are for yet-to-be-built homes as nearly all sellers and buyers choose to delay instead of risking the health of themselves and others. There are tools to show homes virtually including Zoom, FaceTime, Virtual Tours, etc. for someone that absolutely needs to sell or buy but these situations are extremely rare and generally not recommended for making real estate investment decisions.
For people who already had a purchase agreement in place, the process can proceed to closing as Lenders, Appraisers, Inspectors, and Title companies are still working albeit with the appropriate precautions.
Although the above mentioned Executive Order went into effect March 24th, the impact on the real estate market can now begin to be quantified:
Plymouth and Northville: March New Listings Down down approximately 30% Year over Year
New listing activity (except for yet-to-be-built homes) has slowed to a dry trickle as people stay at home. Even if agents and photographers were allowed to travel and work, new listing activity would be nearly as low in my estimation. People simply don’t want to endanger themselves or others unnecessarily. The April data when available should be even more telling.
Plymouth and Northville: March Active Listings Down down approximately 20% Year over Year
Active listings for March are also down year over year reinforcing the message above. The impact of COVID-19 mitigation actions has resulted in a frozen real estate market that will gradually thaw after we can flatten the curve and get past the worst of this crisis. Please stay safe everyone. Real estate will always be here.
The data is now in for 2019 and although the trends have remained fairly consistent, there are some interesting changes to note. We had a very rainy spring which dampened the market slightly. Otherwise it was a strong year overall. Interest rates remained low, the local economy was strong, 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. We are also seeing fewer bidding wars and more contingent offers being accepted. This is good news for buyers who have had a particularly difficult time over the past few years.
The City of Plymouth actually saw a slight decline in average sales price after years of steady price increases since the recession. There are many factors to average sales price so it’s only one indicator but it is meaningful that for the first time in 10 years, average sales price has pulled back. This could be due to smaller new construction homes being built or perhaps home values have simply peaked for the time being.
Both Plymouth and Northville Townships are holding fairly steady. The below charts illustrate the 10 year Average Sales Price trend for Plymouth and Northville, City and Township. There are fewer home sales at higher prices in the City of Northville which can result in a more dramatic chart.
10 Year Average Sales Price for Plymouth and Northville:
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. Generally, the larger the home, the lower the $/sqft all other things being equal. Naturally, more updated/upgraded homes with finished basements and so on will also be higher than the average. The below charts illustrate the 10 year Sales Price by Square Foot ratio trend for Plymouth and Northville City and Township. It remains steady for the area overall:
To illustrate the current low inventory which hasn’t changed much since the recession, the following charts show Months of Inventory and Days to Sell for Plymouth and Northville combined. Inventory remains relatively low while Days to Sell was slightly higher. The market has tilted slightly towards buyers.
Looking back at 2018, the real estate season started off strongly after a fairly mild winter but things gradually settled down in our area depending on where you were in Plymouth or Northville, City of Township. In general, the city markets did better as people continue to be drawn to walkable downtowns and all that they offer in terms of lifestyle while a broad range of issues influenced many buyers and sellers including the following:
Rising prices and limited supply making it especially competitive for first time buyers.
Increasing interest rates, which although historically low, were a deterrent to some buyers
Stock market volatility
Availability of new construction homes
Automotive industry changes
The local economy remains quite strong as new businesses continues to appear and new real estate development goes on and up – residential and commercial. Plymouth and Northville, City and Township have seen similar trends in terms of value last year. The City markets saw a slight uptick while the Townships were fairly flat. Even when you factor in new construction values, the City’s of Plymouth and Northville have limited supply and an extremely diverse housing stock ranging widely in size, age, desirability, and price. So statistics can require a lot of interpretation but overall the trend is up.
In the Townships, Plymouth is fairly stable with only a slight decrease in Sales Price by Square Foot ratio. Northville Township is also fairly even where new construction is an added competitive factor for resale homes especially in the upper price ranges. Homes that haven’t been updated are having an especially difficult time selling and tend to linger longer on the market. Buyers today have the added influence from HGTV and social media so what was desirable 10-20 years ago, never-mind 30-40 years ago, becomes quickly dated and obsolete. So choose your designs, materials, and finishes wisely when building or updating and your home should withstand the test of time in terms of value.
To put things in historical perspective, here’s Robert Bake’s Holiday Bulletin from 25 year ago:
Below are the charts showing each area’s 10 Year trend of Sales Price by Square Foot Ratio. The average prices shows a similar trend. Overall, after 10 years of upward movement, the positive trend has begun to ease.
The Super Bowl and Olympics are over, Spring Training has begun and that means only one thing: Real Estate Season is here! Buyers and Sellers are emerging from their winter hibernation and preparing and planning their next move.
Our markets of Plymouth and Northville, both City and Township, remain strong and steady. The charts are fairly self-explanatory and locals know how intense the market is around us. The City of Plymouth continues to increase in value as the downtown area flourishes with busy shops, restaurants, and events. The City of Northville has also seen significant increases in value. The Townships of both Plymouth and Northville have also shown steady price increases in addition to growing new development activity – especially in Northville Township. The lack of inventory as shown below illustrates that in an area where there is limited opportunity for new development, the price of existing homes will appreciate in a strong market.
We now have the full year of 2016 data and average price trends in the Plymouth and Northville markets have continued their upward climb. This should come as no surprise to those who live here and have witnessed the market first hand. But it’s nice to see the supporting data that shows prices have indeed kept rising. I’ve split the data by City and Township for both Plymouth and Northville single family homes with comments and observations below each chart. You’ll find a 5th chart that illustrates the inventory of active listings in Plymouth and Northville remains very low. As always, you can refer to our website’s front page to see what our listings and buyer sales close for. If you would like additional market information or a valuation of your home, please complete the form at the end of this article.
City of Plymouth Average Sales Price: Single Family Homes Last 10 years: Another Record Year
The City of Plymouth real estate market continues to reach higher and higher heights as people are attracted to our walkable neighborhoods and city center. Prices are setting new records with bidding wars being commonplace for the more desirable homes and locations – however, it’s not every home that sells for a premium. Location, condition, presentation, marketing, functionality, updates, and pricing all determine how fast and how much a home will sell for.
We are seeing people from all over the metro Detroit and Ann Arbor area choosing the City of Plymouth whether they are first time or last time buyers. Buyers are cross shopping Plymouth and Ann Arbor more often as well as the Ann Arbor market can be even more competitive. New construction activity has also been transforming parts of the City resulting in a community response that resulted in new rules for new construction. How the new Floor Area Ratio ordinance will affect the market remains to be seen but I expect Plymouth will be just as desirable, if not more desirable, as before. If you split out new construction homes from the data, the average price is still trending significantly higher year over year. And based on the actual activity we are seeing on the ground, this upward trend should continue through 2017 barring any unforeseen shock to our local economy and the automotive industry in general.
Township of Plymouth Average Sales Price: Single Family Homes Last 10 years:
Plymouth Township prices have also remained steady and strong although the market is less robust than in the City. For buyers who prefer a little more house for the money, a lower property tax rate, a larger home and/or property, or prefer to just have more privacy and space between homes, the Township offers a wide range of established neighborhoods and homes with acreage, nearby parks, and proximity to the City. We have also seen quite an increase in inbound relocation buyer traffic moving to the Plymouth area where the schools, prices, proximity to the City of Plymouth, DTW, metro Detroit, and Ann Arbor all help to make the Plymouth Township very attractive.
City of Northville Average Sales Price: Single Family Homes Last 10 Years:
The City of Northville has also shown a remarkable recovery from the Recession. Prices are very strong with homes selling off market or very quickly on market at higher prices. The tear-down/new construction activity is here as well although not as pervasive as in Plymouth. Northville has a much larger Historic District where home demolition is severely restricted. The business district continues to thrive with new restaurants, coffee shops, retail stories, parks, events, while the quiet, historic, walkable neighborhoods continue to attract buyers who appreciate all that Northville has to offer. The feel of the downtown is different from Plymouth so we always encourage our clients to spend time in both to see for themselves. If you are looking for a home in the City of Northville, we recommend patience and perseverence.
Township of Northville Average Sales Price: Single Family Homes Last 10 Years:
Northville Township prices have recovered steadily and there are pockets of new construction on the few remaining empty lots and even new projects on previously undeveloped land. The redevelopment of the old Women’s Prison will take place adding more residential, shopping (and traffic) to the Beck Road and 5 Mile area. One of the drivers of Northville Township real estate market over the past year is inbound corporate relocation activity. We see a steady of flow of transferees either moving to or moving back to the area. Larger, newer homes with community amenities, parks, and highly regarded schools have made Northville Township a safe and reliable choice for many buyers. As with Plymouth, the location is ideal for proximity to everything in metro Detroit, Ann Arbor and the downtowns of Northville and Plymouth.
Plymouth and Northville Number of Active Listings: Homes and Condos Last 10 Years by Month:
With demand for Plymouth and Northville continuing to drive our market and a limited supply of new construction inventory, real estate is going to remain a sellers market. The dramatic decline in the number of active listings on the market at any given time since the recession clearly indicates how competitive the market is, why prices are going up, and how difficult life can be if you are trying to buy in Plymouth and Northville.
If you have any questions about the material above or just want to discuss your real estate goals with us, please contact us by completing the form below and we will respond to your query promptly. We specialize in our local market and can provide the professional expertise and experience necessary to guide you through the process.
We are happy to welcome Sorra Scott to BAKE Real Estate as our newest Salesperson. Sorra lives in Canton with her husband and their daughter, where they are currently renovating their Sunflower Village colonial. She holds a Bachelors Degree in Business Management and prior to joining Bake Real Estate, held a 10-year career in Human Resources with several well-known companies including Iron Mountain, Avis, and Compass Group. Her experience advocating for clients in a fast-paced environment, gift for connecting with people, desire to help, and love of houses and uncovering their true potential, make her an asset to her clients in the dynamic world of real estate.
Sorra can be reached at (734) 664-2578 or email@example.com.
It’s mid-summer and we now have data for the first six months of 2016! Our markets of Plymouth and Northville, both City and Township, remain strong and steady. The charts are fairly self-explanatory and locals know how intense the market is around us. The City of Plymouth continues to increase in value as the downtown area flourishes with new shops including the opening of Westborn Market. It’s heartwarming to see people walking downtown with their folding shopping trolleys on their way to do their grocery shopping! The City of Northville has also seen significant increases in value – especially in the downtown area where new businesses like Red Dot Coffee and the Center Street Grille have created a lot of excitement. The Townships of both Plymouth and Northville have shown very steady pricing and new development activity is on the rise once again in Northville Township.
We are very excited to announce that Jeanne Mulhern is now part of our REALTOR® team here at BAKE Real Estate where our entire staff are licensed Salespersons or Brokers in the great state of Michigan.
Jeanne is a 20-year plus resident of downtown Plymouth while born and raised in Northville. If you want local knowledge, she has it or knows where to find it fast! For people new to our area, this can be a huge advantage when buying or selling a home. Jeanne also brings a wealth of professional experience and business acumen to her clients and to our team.
Prior to joining the BAKE Real Estate, Jeanne held client and REALTOR support duties here at BAKE Real Estate and also Coldwell Banker Weir Manuel in Plymouth. She also had a 10 year career as a procurement professional for Kraft, then Alliant Foodservice.
2014 saw the average sale price for a residential home in the Plymouth and Northville markets continue to increase. In the City of Plymouth, the average sales price has risen for 4 consecutive years reaching new highs. The average sales price of a single family home in the City of Plymouth is now 63% higher than in 2010. The City of Northville has also reached near pre-recession highs with the average sales price increasing 70% since 2009. In the Township areas, Both Plymouth and Northville Townships have also seen steady price increases but have yet to surpass pre-recession highs. Price growth has been steady and the trend is higher across the board.
The dramatic increase in real estate value in the local area has reignited new construction activity. In the City, we are seeing smaller/older homes demolished and larger homes built in their place. In the Township, we are seeing farms and empty lots replaced with new residential and commercial building activity. The street scenes and landscape are changing!
And as we look forward to 2015, all indications are that prices will continue to rise albeit at a more conservative and sustainable pace. Interest rates remain low while interest in moving to Plymouth and Northville remain high.
City of Plymouth 10 Year Average Sales Price Trend
City of Northville 10 Year Average Sales Price Trend
Township of Plymouth 10 Year Average Sales Price Trend
Township of Northville 10 Year Average Sales Price Trend
Buying a home is anything but a passive process. You must align yourself with a reliable team and take an active role in the process with plenty of communication with both your household members and your real estate team.
Here are five things to think about to get started:
Find a Local REALTOR in the area of your desired home. A local real estate professional will have knowledge of the schools and neighborhoods in the community in which you’re searching. They can help you determine which neighborhood or street is the best fit for you based on your wants and needs. When your Realtor lives and works in the community, they know it best and can pass on their first-hand knowledge to you.
Talk to 2-3 lenders (local ones, ideally) and pick one to obtain a Pre Approval. Interviewing multiple lenders is an important step. You want to find someone with whom you’re comfortable discussing your finances and personal information because you will be entrusting them to finance the biggest purchase of your life – so far. It’s also very important to find a lender who will be available to you when you need them, during business hours and beyond. Pre-approvals help gauge how much you can comfortably spend on your home. Local lenders are hopefully easier to meet in person and will understand the area in which you’re buying.
Spend time in the towns and neighborhoods you’re considering. Going to open houses is a great way to familiarize yourself with the local neighborhoods and home styles. Visiting open houses does not require a pre-approval letter, but it’s recommended to look within your price range. Filling your weekends with open house tours will increase your knowledge of the local market and help you determine what you can get for your money. It’s also important to visit the towns/cities you want to live in and experience the festivals, events, restaurants and shops. You can learn more about the area, meet the locals, and find out what you can buy for your money
Work your travel plans around house hunting so that you are available when the right house comes up on the market. Good houses go fast, especially in more affordable price ranges. You want to be able to be the first in the door when a good house gets listed, especially during the spring and summer months when there are more buyers searching for homes. The early bird gets the worm!
Make sure you have prioritized your needs and are realistic based on your price range and the level of competition in the market. You could miss out on the right home if you narrow your search too much. Keep an open mind and trust your REALTOR’s suggestions. Make sure your Realtor knows your deal-breakers, but keep them realistic. Competition has become common lately for good homes, so working with a local expert who is skilled at negotiating and writing offers will put you ahead of the pack.
There are many more items to think about but if you have a good REALTOR they will help you navigate the process and keep you on track to get your ideal next home!
Just listed: A small and highly prized condominium village with only 28 units directly overlooking picturesque Walden Pond. A trophy location surrounded by higher value single-family homes. Two bedrooms up… each with their own bath. There are 4 closets in the master bedroom (one is a large walk-in). Living room with fireplace, 3 ½ baths, formal dining room, stacked washer/dryer off kitchen, finished basement with wall-enclosed Murphy Bed and Kohler jetted tub. One car attached garage with opener. Brick patio off dining room and large balcony off master bedroom offers privacy and stunning views of Walden Pond.
Open this Sunday 11am to 2pm, 540 Orchard Drive was seamlessly expanded & renovated in 2011 with design work by Architect George Clemens (clemensarchitecture.com) and custom build work by Amish builders. This home has character AND functionality. 3 bedrooms upstairs and one suite on the main level, a Shaker style gourmet island kitchen with quartz countertops & stainless appliances open to the family room, 3rd floor recreation room, abundant storage, a 2011 2.5 car carriage house with walk-up second story, spacious basement for storage & recreation, 2nd floor laundry closet hookup, covered rear porch, mudroom, James Hardie & brick siding, Jeld-Wen windows, 3 fireplaces, and more. Walking distance to OLV school, parks, & Downtown Northville. Award-winning Amerman Elementary, Hillside Middle & Northville High Schools. Live the charmed life in one of America’s greatest classic small towns!