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.
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.
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.
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
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!
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.
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.
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.
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.
City of Plymouth:
City of Northville:
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!
(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!
We 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
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.
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.