June 2020 Real Estate Market Update – Macomb County, Michigan

We have your Macomb County June 2020 Real Estate Market Update. Let's jump right into this. I hope you and your family are well. This is an incredibly crazy time. There are so many different things going on, every which direction. We have to kind of cut through all this. We're doing this update now for five years, every single month. I told you through thick or thin, we're going to give you this data because for the most part for most people is the biggest investment of their lives. You have to know, do I need to pull money out? What's coming in the future. Do I need to sell and pull out all my equity off the table? Do you want me to stay put, what do I need to do? So that's why we do this.

Macomb County as I said, June 2020, we do the month in arrears. We've had the data fresh off the press and we do three years of data that way we can see a trend. Remember in investing trends are your friend. You want to invest in the trends and not go against trends. That's why, if we just gave you this year of data, it wouldn't make any sense. Let's go right into this.

Days on market

DOM - anytime you see that is days on market, average days on market. Thirty 2 years ago, 32 last year and 44 this year. So this is again, we're seeing this jump across all the counties, all the major counties in Southeast Michigan, and the last handful of months. We're seeing this jump on the days of the market, probably because of other doings. That's probably why some of these things are happening, obviously because here we're seeing inventory decreases and price increases. So it would lead you to believe again, that some interesting things are making houses sit on the market longer. But again, that's something that the month as they play out, we will see here because you have to kind of look at the rest of this data and take it as a whole.

Active homes in the market

One thousand two hundred seventy-three two years ago, 620 last year. Again, sometimes you get into an anomaly number, which I think that one might have been and then 1,233 this year. So actually pretty similar to 2018, which is good to see. Most counties have kind of come back up again a little bit. Active, by the way, is that's one day. So when the data was taken, how many homes were on the market at that time? That's why the trends are important with a lot of these numbers.

Months of inventory.

One across the board. One 2 years ago, one last year, one this year. It's probably about one and a half. We round these numbers, but this is at the rate homes are selling, how long would it take to sell every last home with no new homes sitting in the market? So that is an important data set. That way you can tell very quickly just by the ratio, what kind of market are we in. One to three months is a seller's market four to six months is a balanced market. Then seven-plus is a buyer's market. Buyer's market - meaning there's a ton of homes in the market and buyers have their pick and the prices are coming down.

New homes in the market

This is a month-wide number. So how many new active listings came onto the market during that month? Two thousand two hundred thirteen two years ago, 2,263 last year, and then 2019 this year. So we are seeing there's an uptick in homes comparatively over the last few months with what we had. We had some sharper decreases, obviously because of COVID and different stuff like that. But I'm still down a little bit, not terribly, but down a little bit in the last couple of years but it's good. It's good to see that the levels are back up at least close to where they've been previously.

Price per square foot

One hundred seven dollars two years ago, $114 last year and $118 this year. Again, we've seen this across the board as well. In the last few months, we've seen this with all the other counties as well. Prices are continuing to go up because again, real estate is a lagging market. It does take a while for some of these things to change as well. If you take your square footage and multiply it by this number, it's going to give you approximately what your home is worth. More importantly, though, is the trend. The trend has been going on. Again, remember, investing with the trend. If you want the actual valuation of your home, you have to have a professional, someone on our team over to your house. You have to have an appraiser, somebody to give you the actual comps the comps and actual value of your home, because this is just a general countywide average, remember that.

Number of sold properties

This is the number of people closed, physically close to home. One thousand four hundred thirty-seven two years ago, 1,361 last year, and then 1,065 this year. Again, we're seeing this across the board as well. It's still a decrease in the number of homes sold. This is your buyer data set. How many buyers are still out there now? Like I've said for five years now, the buyer pool doesn't change too much unless there's a catastrophe, some anomaly, Black Swan event. That's exactly what we had obviously. So we're seeing a pretty good percentage decrease really across the board of the last handful of months and every County. Another number to kind of look at and keep an eye on, because again, we've had a lot of new homes in the market, pretty similar to the last few years. It will be interesting to see what happens going forward here.

So that's your Macomb CountyJune 2020 data. We tried to get in and get out for you guys, make sure you have the data you need. You're armed with that way you can make the best decisions for you and your family. So I appreciate you guys more than anything, your time, your attention, your energy. It truly is the most important asset we have as we have seen over the last handful of months. If you're on the podcast go to @legacygroupmi to go put your questions? Comments concern there, and we'll answer those. We appreciate you guys being here and we'll see you

On the next one.