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As we come to a close on the summer months, the housing market experiences minor adjustments from July. The data year over year shows certain counties reporting an increase in several areas: new listings, median sales price, and months of inventory. With more houses coming to the market, homebuyers are going to start feeling the ease when looking for their next home. There are several areas that are possible influencing factors on the market: lumber prices with new construction and the eviction moratorium.
The pandemic has been a challenge across all sectors all over the world. The housing market is no exception. One specific area that was impacted by the pandemic is new construction. The cost to build a new home increased dramatically, adding as much as $36,000 extra to build. The main culprit to the additional cost: lumber. At one point, lumber prices were up 316%, OUCH! Those who would have typically gone the route of new construction suddenly found themselves entering the market as homebuyers. This created a competitive housing market- supply and demand at play: numerous homebuyers with low for sale inventory equals high housing prices.
The good news is, lumber prices have been consistently dropping since June. In July, over 700,000 new sales were reported for newly constructed homes. The more new construction takes place the less demand for used homes, which hopefully eases home prices.
October 3rd is the date that the eviction moratorium ends. Some reports speculate that as much as 3.5 million people may be affected by the ending of the moratorium (source: Goldman Sachs). Possibly 750,000 people could be evicted from their current living situation. Key factors to keep an eye on will have to be on the number of individuals being evicted as well as the foreclosures. Both elements could rapidly bring the current hot market to a screeching halt.
Below, you’ll find Metro Detroit’s housing marketing data, more specifically the counties of Oakland, Macomb, and Wayne. The data you’ll see for each county is as follows:
+Median Sales Price
+Number of New Listings
+Number of Active Listings
+Number of Pending Sales
+Number of Closed Sales
+How many Months Inventory
+Average Days to Sell