Oakland County Market Update, April 2020
Avg. Sale-to-List Price
(No change to Apr. 2019)
(-73% to Apr. 2019)
(-72.1% to Apr, 2019)
(-22.6% to Apr. 2019)
(-39.8% to Apr. 2019)
What Do The Numbers Mean?
April was our first full month of sheltering in place and real estate activities were deemed "non-essential" by the Governor, so it's not surprising that the number of new listings was down by 73% to April 2019 and the total number of active listings was down by 23% to last April. Many sellers are taking a wait-and-see approach to whether they will list their homes this year, and some who had active listings in prior months have de-listed their homes for the time being. This means that the housing shortage in Oakland County persists, and we remain in a seller's market where the demand for housing far exceeds the inventory.
The number of listings that were placed under contract in April was down by 72% to April 2019. This and other data show that some buyers have hit the pause button too. This is good news for buyers who are active in this market, as they are enjoying a less competitive market with fewer multiple-offer situations.
There were 40% fewer closings in April as compared with last April. Many of the homes that sold were placed under contract in prior months - and some before COVID-19 took hold of metro Detroit. It's encouraging that these sellers and buyers were willing to close transactions despite growing fears of job loss, falling home values, and other economic challenges.
Interestingly, homes sold faster in April, with the average number of days on market decreasing to 37 from 39 days in April 2019 and 46 days in March. Perhaps those buyers who are willing to buy during the pandemic are serious about buying and decisive when they see a home they like - especially if they're willing to buy a home without seeing it in person.
One of the more surprising statistics is that home prices held steady in April. The median sales price was about 2% higher than in April 2019, and only about 1% lower than the median sales price in March. And homes sold for 98% of their list price - the same as last April. With inventory being so restricted, sellers may not feel pressure to lower prices in order to attract buyers despite the pandemic.
With real estate services resuming to a fuller extent as of May 7th, it will be interesting to see how the numbers unfold in May. As of this first week of May, Oakland County has already seen a jump in new listings - with more than 650 new listings in the first week! Stay tuned for our May market report.
Please know that we are here to help. We understand the uncertainty and fear you may be feeling. We are here for you to answer any questions and help you find solutions and possibilities during this challenging time. Please do not hesitate to contact us.