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.

How COVID-19 has Changed the Plymouth and Northville Real Estate Market

It’s been just over 1 week since the Governor’s Executive Order 2020-21: Temporary requirement to suspend activities that are not necessary to sustain or protect life.

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.

Covid March Impact 2

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.

Covid March Impact 1

 

 

 

 

 

 

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

“Plymouth, Michigan…A Rich History” Trailer – Movie will be available On Demand Tonight!

Plymouth, Michigan…A Rich History from Highway Media on Vimeo.
If you didn’t catch this movie at the Penn late last year or earlier this year, now’s your chance to watch it at home. Look for an appearance from our own Bob Bake!

Founded in 1825, the Plymouth community has experienced a deep and rich history, filled with greatness…and despair. From the earliest settlers who trekked through the Erie Canal, to the war heroes, fires, trains, and air rifle industry, this film takes you on a 200 year journey of Plymouth like never before. So jump on board before the whistle blows to experience an endearing tribute to this beloved town. Welcome to Plymouth, Michigan!

Plymouth and Northville Real Estate Performance in 2019

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:

Sales Price by Sqft Ratio

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.

Months of Inventory

Days to Sell

2020 Plymouth Ice Festival

The 2020 Plymouth Ice Festival is coming the weekend of January 10th through 12th in Downtown Plymouth centered around Kellogg Park. You’ll be able to see amazing ice sculptures throughout downtown – plenty of fun for the whole family.  Seeing the festival after dark is something that you should try if you haven’t already.  Here are some photos from past years when they had an ice bonfire that lit up the night sky. For more information, go to www.plymouthicefestival.com.

plymouthicefestival-bonfire-patrickwong

The Ice Festival is one of several street festivals in Downtown Plymouth that take place throughout the year. The area is very walkable with plenty of parks, shops, restaurants, and entertainment – along with plenty of parking. Plymouth also has beautiful residential tree-lined streets with lots of gorgeous historic homes making it one of the area’s prettiest and most walkable small towns. plymouthicefestival-penn-patrickwong

2018 Real Estate Market – Year in Review and look back at where we were 25 years ago!

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:

Robert Bake Realtors Holiday Bulletin 1994

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.

Plymouth Township:

Township of Ply dollar per sqft

Northville Township:

Township of nv dollar per sqft

City of Plymouth:

City of Ply dollar per sqft

City of Northville:

City of NV dollar per sqft

Bigalora Wood Fired Cucina is now open in Downtown Plymouth!

IMG_1077

The new Bigalora Wood Fired Cucina in downtown Plymouth is now open where the Box Bar used to be.  Located at 777 West Ann Arbor Trail right across the street from Kellogg Park – we now have another great thin crust pizza, pasta, and salad option for lunch in DTP! The contemporary interior with sky high ceilings and tall windows on 2 sides really makes the place feel spacious and light.  Welcome to Plymouth!

IMG_1078

160 Main Now Open in Downtown Northville!

northville night-13(Updated 12-17-18).  We had dinner last night at the new 160 Main in downtown Northville.  After admiring the work to the building over the past year, it was great to finally walk through the doors into the 2 story bar area up front.  Past the bar, there’s a dining room on the first floor and another dining area up stairs. We aren’t restaurant critics but really enjoyed the menu selection, food, and service. It’s another great upscale dining option in the City of Northville!

Walking by last night and located beside the Town Square, it looks like work at  160 Main is nearly complete and opening appears set for December 6th! The exterior facade looks great and so does the interior from what we can see.  We are looking forward to trying this restaurant!

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

My Little Paris Cafe and Bookstore in Downtown Northville

 

mylittleparis
My Little Paris Cafe and Bookstore in Downtown Northville

Having a bookstore in the city center is something everyone likes.  Then combine it with a cafe that serves crepes and you’ve got the ingredients for a destination!  My Little Paris Cafe and Bistro in downtown Northville is a definitely worth a visit if you are in the area.

Formerly the Next Chapter Bookstore and Bistro at 141 E. Main Street, this gorgeous brick building is in the heart of the historic downtown and makes an ideal place for a comfortable book store and sidewalk cafe.


northville bookstore
The restoration project in 2009