Mid-Summer Real Estate Market Update

With July data now available, this is a good opportunity to look back and analyze current real estate market trends. 2021 has been a real estate market unlike any other with stories on the news and from your neighbors about bidding wars and buyer frustration. Business has been frantic at times. This past Spring was especially busy with a staggering increase in buyer demand without a corresponding increase in the supply of available homes for sale. This imbalance has just begun to equalize itself due in part to the seasonality of real estate as we reach the end of the summer but also because buyers may be postponing purchasing or have given up altogether – at least for the time being.

Here are some charts to help illustrate what we are seeing in our local market: from the lack of activity during the stay at home order, to the gradual return of the market albeit delayed in 2020, to the dramatic increase in demand in early 2021 and finally, to a slight cooling but still hot market we have now. It’s also important to keep in mind any “year-over-year” comparisons to 2020 should be scrutinized carefully since you can’t really compare this year’s Spring market to last years to due to the effect of stay at home order we had.

Median Days on Market Last 5 Years

Days on Market remains at a low when you look at the past 5 years. The market has been good here for the last 11 years so good homes priced well had been selling quickly even before Covid. You can see the spike during last year’s stay at home order. You can also see the seasonal spike at the end of each year when real estate activity slows down.

Shows Per Listing Last 5 Years

This chart is perhaps the most telling of all. After peaking in March and April of this year, Showings per Listing have started to slow inline with seasonal norms but remain high relative to previous years. This shows just how competitive the seller’s market was and continues to be. There is usually a peak in the Spring months but nothing like what we saw in 2021 which was approximately 2 times the number of showings per listing. The number of showings per listing still remains higher than usual. Finally, note the dip during last 2020 stay at home order.

Number of New Listings Last 5 years

This chart illustrates that it’s not just increased demand that has driven the market – but also a lack of supply. New listings this year have been comparable or slightly less than previous years. People always need to sell for various reasons and recent prices have certainly enticed some to sell. But if you want sell high and need to buy at the same time, the benefits of selling just to time the market may be limited. Overall, there are homes for sale as there have always been – except there are more buyers competing for them.

Pending Sales Last 5 Years

Showing typical seasonal changes, Pending Sales were very strong in the Spring but are seeing the usually seasonal decline now while still higher than past years. If you look at 2020, there is a peak in the summer that was mostly driven by a backlog of sales caused by the stay at home order in the Spring of 2020. Sales that year were pushed back and concentrated later in the year.

Median Sale Price Last 5 year with 12 Month Rolling Average

This trend for Sales Price remains steadily upwards with 2021 seeing the trend accelerate. Overall, prices were already moving up steadily since back to 2009 but we did see 10-20% increases over just the past couple of years.

In summary, our local market remains strong given how desirable a place it is to live. New construction is adding to the stock of homes but there is less and less space for large developments. Material and labor costs and shortages will also limit how much stock can be added locally.

Real Estate Market Update for Plymouth, Canton, Northville, and Novi

Here are 3 charts to help illustrate what we are seeing in the market this Spring relative to the last 10 years.

The number of new listings is lower but not significantly. Each week, there are new listings throughout our region and there are more coming. The ‘sellers market’ may be tempting more people to list. But we typically see selling activity increase in the Spring and into the Summer each year.

But the main issue has been the number of buyers for each of these new listings. When you look at the number of showings per listing below, these figures are up dramatically. For each new listing, there are many more showings than we have seen since the recession. The number of showings per listing was actually declining for the last few years but started to drastically change last summer resulting in the chart below:

With such an increase in showing and buying activity with essentially the same or fewer new listings available, the inventory of homes for sale is at a 10 year low currently. We do expect more new listings to keep coming up as the weather improves and the school year ends. But the market will take some time to absorb all the buyers that are currently looking.

Plymouth, Northville, and Novi Spring Real Estate Market Update

April data is now available and it reinforces what we’ve seen so far in 2021 during our daily real estate activities. There continues to be very strong buying demand without a balancing level of selling – creating quite an uneven market. Across Plymouth, Northville and Novi, homes are selling quickly – often with numerous showings and multiple offers. There are of course exceptions – generally more unique homes or highly priced homes can take a little longer.

Prices are up accordingly and will likely continue to increase as a large number of pending sales have yet to close. Many of these pending sales are at or above the listing price which will likely raise comparables and help mitigate appraisals holding back values in some cases.

If you are a buyer, it can be a challenging time but with the right advice, patience, and perserverence, you can and will succeed. If you are a seller, it’s definitely a great time to sell but consider the cost of where you are moving to as well.

These are tumultuous times so your home has never been more important.

The first set of charts below illustrate number of active listings and average price over 5 years for Plymouth, Northville and Novi individually and collectively. The second set shows average price over 10 years for the same areas. The message is simple and consistent: prices are increasing while the number of available homes remains limited.

2020 Plymouth and Northville Real Estate Market Year in Review

2020 Plymouth and Northville Median Sales Price Increased 5% over 2019

2020 was a year like no other for many businesses including Real Estate. In March of last year, we were essentially put on hold during the Stay at Home order. There were still virtual showings, purchases, and closings but volume was down significantly. By May, the market was slowing reopening and people cautiously began listing and looking. Gradually, the market gained momentum as buying activity grew while supply remained limited. People aligned their real estate needs with working and learning from home. This usually meant larger homes with more amenities but also more outdoor space too. With travel, dining and entertainment expenses dramatically lower, people allocated budget to home purchase, renovation, and decoration. The result is a market with steadily increasing prices, growing demand and lack of choice. The charts and data below from last year and into this year, clearly illustrate many of these trends.

In terms of 2021, it’s impossible to predict what will happen but we do know that Plymouth and Northville remain very desirable places to call your home and your home has never been more important! And with the Superbowl behind us, people usually start to turn their attention to getting their home ready to sell or start preparing to buy their next home. We look forward to 2021!

Plymouth and Northville Months of Inventory – Last 5 Years by Month

Inventory Continues to be Low – It’s about half of what it was last year at this time!

Plymouth and Northville Number of Active Listings – Last 2 Years by Month

January Number of Active Listings is just more than half of what it was last January

Plymouth and Northville Number of Pending Sales – Last 2 Years by Month

The number of Pending Sales has settled down after many months of being higher than last year. Fewer available homes will mean fewer pending sales.

Plymouth and Northville Number of Sales – Last 2 Years by Month

The Number of Sales has remained fairly steady January year over year. This chart illustrates the effect of the Stay at Home order during April and May of last year and then the rebound that started in the summer.

Plymouth and Northville Number of New Listings – Last 2 Years by Month

There were of new Listings in January dropped 45% Year over Year. January is yypically a slower month for new Listings but this year is significantly lower than normal.

The data above is based on Realcomp residential and condo sales for Plymouth and Northville, Cities and Townships,.

End-of-Summer BAKE Real Estate Plymouth and Northville Market Review

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:

Plymouth/Northville June Pending Sales Rebound Sharply as our Local Real Estate Market Recovers with Pent-up Buying and Pent-up Listing

The real estate industry in Plymouth/Northville did some catching up during the month of June as pending home sales increased 35% year over year. Pent-up buying AND pent-up listing drove the market as buyer and sellers returned to the market. While the number of closed sales is still lagging, July should reflect the peak of pending sales in June. Prices remain steady as demand continues to be strong and with more listing coming online.

Number of Pending Sales increased 35% in June Year over Year
Number of Sales showing the effects of COVID-19 but recovering. June is usually a peak month.
Average Sales price is flat overall in 2020 but there will be more data after July closings.
Median Sales price is flat overall in 2020 but there will be more data after July closings.
The number of new listings has returned to near normal levels.
The number of active listings is down in June year over year as pent-up buying returned quickly but pent-up listing has lagged somewhat.

A Message from BAKE Real Estate

Hi Everyone,

Our family at BAKE Real Estate sends well wishes to those around the world who are affected directly or indirectly by the COVID-19 virus. For those of you following us from afar, we are in a “Stay Home/Stay Safe” mode here in Michigan, as in some other States and other countries. Therefore, we will be working exclusively from home until at least April 14th. Our six full time agents, including me, Patrick, Stephanie, Ann, Sorra and Christine, as well as our unofficial Canine Comfort Agents, Toddy and Biskit, are available by text, phone or video conference for real estate advice. Thank you to all of you who are out doing essential services to keep our citizens alive and well. We appreciate everyone working together on this to flatten the curve.

Carrie and Patrick

Northville Art House: ARTCRUSH – SATURDAY, FEBRUARY 8, 6:30 – 10 PM

The Northville Art House is a community art center in downtown Northville opened in 2005 which offers exhibits, classes and an artisan store.  The Northville Art House currently offers in-house programs for adults, children, teens, and special need groups, such as Painting with Parkinson’s.  It also offers out-reach programs for kids in Kindergarten through Fifth Grade in the Northville Public Schools and have started working with the special education program at Cooke School.

One of the signature fundraisers is coming up on Saturday, February 8.  If you are looking for a wonderful way to spend an enjoyable evening and also support a community gem, consider attending Art Crush on Saturday, February 8 from 6:30 to 10:00 p.m. at the Northville Hills Golf Club.  Tickets are $85 per person and includes dinner, open bar, a silent auction, entertainment by the Keynote Sisters and Live Painting by artist, Jennifer Helner.  In addition, you will be helping what the media has called a “funky little house in downtown Northville”.   Please see the attached flyer for more information or go to https://northvillearthouse.org/artcrush/

ArtCrush promises to be an exciting evening featuring a sit-down dinner with “A Taste of Italy” flare, open bar, artist workshop, live painting, silent auction, and entertainment by Keynote Sisters at Northville Hills Golf Club.

ArtCrush flyer for brochure-3×5- 2020

ArtCrush_2020-2-1

Christmas in Kellogg Park by Lauren Wan

Christmas Kellogg Park-001We are very excited to present this painting of Kellogg Park by Lauren Wan and commissioned by BAKE Real Estate.  Signed prints are available from the artist.  Please complete the form below if you would like more information :

Lauren graduated with an MA from the Royal College of Art in Textile and Printmaking. Lauren creates contemporary and sophisticated art for todays leading international brands covering fashion, tabletop, home furnishing, stationery and fine art. Her inspiration is derived from her travels and beautiful things around her. Lauren’s sensibility and experience richly reflects on her emotional and poetic approach to her artwork. Besides Lauren’s commercial success as an established designer, her fine art was selected for the Hong Kong Museum of Art’s permanent collection.  www.laurenwan.com  Instagram: #laurenwandesign

Welcome Aboard! Christine Oglesby joins BAKE Real Estate as our newest REALTOR

Christine

Born and raised in New York, Christine has lived in the metro Detroit area since 1994. She appreciated the opportunity for her family’s International Relocation from 2008-2011 in Vancouver, Canada. Christine is no stranger to the rigors of relocation and is happy assist clients in this exciting process. Through their many moves Christine developed a love of turning houses into homes. She currently resides in Northville with her husband and 2 teenage sons where they recently completed renovating their home. Christine has been involved with many youth sports and Northville school organizations as her boys have grown up over the years. Her knowledge of Northville and surrounding districts will be invaluable to her clients.

Christine holds a BS in Physical Therapy from Ithaca College, and enjoyed a 25 year career as a Physical Therapist. She spent many years working in client homes in Northville, Plymouth and surrounding communities giving her a unique perspective and understanding of these neighborhoods. Christine is excited to be part of the BAKE team which allows her to combine her love of working with people with her love of all things real estate. Her unparalleled attention to detail is key to assisting all her clients get a first rate experience whether they are buying or selling their home.

Christine can be contacted at 313-919-2940 or by email at christine@bakerealestate.com.

BAKE Real Estate is Pleased to Congratulate our Newest Associate Broker: Stephanie Sultan

Stephanie Sultan, Associate Broker
Stephanie Sultan, Associate Broker

Stephanie Sultan began her career with BAKE Real Estate in 2013 and focuses on the Plymouth, Northville, Canton, Livonia and Ann Arbor areas. She holds the National Association of REALTORS “Green” designation to help promote & educate homeowners & purchasers about energy efficiency and sustainable home features. Stephanie grew up in the area and carries with her a vast and valuable trove of local knowledge – so crucial to real estate decisions often based on location.  Combined with her experience in the area, Stephanie is also extremely detail-oriented, calm under pressure, and hard working – all essential qualities required in a Real Estate Broker. Her patience and diligence are especially suited for first-time homebuyers and sellers. Now living with her husband in Ann Arbor, she enjoys daily adventures with their 3 energetic dogs. Stephanie can be contacted via email at stephanie@bakerealestate.com or on her cell phone at 734-620-4536

With our first snowfall upon us, here’s an article about some fun activities right in our own back yard!