April 2020 Real Estate Market Update – Macomb County, Michigan
We have your April 2020 Macomb County Real Estate Market Update. Let's jump right into this thing. So I always preface three things every single time we do this. We have three years of data because the trend is your friend, remember that. It's going to be more important than ever to see it now because obviously the markets are in chaos. We're in complete mayhem and we need to see the trend here. This is the time that we really need to see trends. Then, we have the month in arrears because now we have the data fresh, hot off the press. So let's jump right into this.
Days on market
Thirty-Six days on the market two years ago, 44 days last year, back down to thirty-nine this year. We're seeing a deflationary event. We're seeing a decrease in demand. People are having to stay home and they can't see the homes or that they weren't in April. So, this number everywhere, in every County is going down. We're seeing prices generally go up because of that actually because it's a short term event. People not being able to see stuff long-term. I don't think it's going to play out like that.
Active homes in the market
One thousand sixty-eight two years ago, 1,340 last year and then 1,213 this year. So again, a decrease here and I think we're going to see more of that as we go forward.
Months of inventory
One, one, and then two this year. So now we're seeing an increase again because we have a deflationary event. Buyers are staying home. That's why we have fewer homes in the market, but there are way fewer buyers out there. So that's why we're seeing these numbers actually increase when you would think they would be going another direction.
Month of inventory
At the rate homes are selling, how long would it take to sell every last home with no new homes coming in the market?
New homes in the market
This is a month-wide number. One thousand eight hundred fifty-eight two years ago, 2009 last year, and - this will boggle your mind - 529. That is it, 529. We're seeing a 75% drop in new homes on the market in Macomb County. A 75% drop. That is absurd! So huge deflationary event. We've seen even fewer buyers though come out obviously because it's still telling us that it's a seller's market. It hasn't moved much. Right? That is incredible because you would think this would go further down if there were fewer homes in the market. That means existing home sellers, that's incredible for them. Right? Well, not necessarily because we're seeing it actually go back towards the buyer's market because of the huge, the even bigger crush in buyer demand. So just all these, there's the function of supply and demand. That's all it is.
Price per square foot
Ninety-nine dollars two years ago, $108 this past year and then $118 this year. Again, as we said, the short-term issues, that's why we're seeing prices go up. I don't think it's going to last forever. These market updates are gonna become even more important and even more interesting as we go forward here. This is why I've been doing this for four-plus years now because of times like this, to get you educated and actually figure out what in the world is going on so you can take care of your biggest liability. Not your asset because the liability is the biggest investment you have most likely. But it's the biggest liability you have because it's the thing you're paying on. You're paying the bank, it's your bank's asset. It's not your asset. It's your bank's assets, your liability. So you need to know what in the world is going on, what kind of equity might I have that way I can get it out, whether it's in form of Heloc, in a line of credit, or if I need to sell. This is a county-wide number. So multiply that by your square footage, it gives you about the value of your home. But remember, you need someone on our team of professional, maybe an appraiser to come to value your house and actually tell you the wind would die down what exactly your home is worth.
This is actually people sitting down at the table, closing on homes. One thousand two hundred fifty-four two years ago, 1,249 - very consistent the last few years, and then 676 this year. That's been cut in half. That's incredible. Again, it is usually showing us a buyer-demand thing. I've always said for years now in times of catastrophe, you're not going to see this number change too much, but just got cut by 50% because of a catastrophic event that no one's out-coming. That's why this is important to go watch these videos every single month. You see the patterns, you see the trends. This is why we do this.
I appreciate you guys more than anything. It's an incredibly crazy time we're going through, all of us. I hope you're well and your families are well, and I hope that you're being blessed in certain ways, finding positives out of all this. We're going to continue doing this. As I said, no matter what, because this is the biggest thing in most of your lives, obviously, even the biggest investments you've made. So we need to know what's going on and how that's working so you can make the best decisions for you and your family. If you're on the podcast @legacygroupmi, it's the Facebook and YouTube channel. Go there, tag, comment, question concerns. We'll see them there. And I appreciate your time and your energy. It's the most important asset we have guys. So I really appreciate that more than anything. We look forward to seeing you at the next one.