We have your Macomb County August 2020 Real Estate Market Update. Let's jump right into. We always preface with three things. We have the month in arrears that way we have all the data. It's fresh, hot off the press and we have three years of data that way we can see the trend. Remember, the trend is your friend. So we have this pattern we can see developing. If we just give you one year of data, it would not make any sense. So let's jump right into this.
Days on market
First one, every single time, average days on market - 30 two years ago, 34 last year, 34 this year, staying a little kind of consistent. We're seeing a lot of this pattern between 2019 and 2020, where it's starting to kind of mirror each other a little bit as we kind of progress through 2020, which is a good thing. Let's leave it at that.
The active number of homes in the market
At that time when the day the data was taken - 1,659 two years ago, 1,887 last year, and then 1,143 this year. So in Macomb County, only 1,143 of the day that data was taken. That's a huge drop off obviously was that a 40% drop off or so. So that's a little bit scary.
Months of inventory
These are over 1 actually a little bit, and this is under 1 month of inventory actually. Months of inventory is at the rat homes are selling, how long would it take to sell every last home with no new homes came in the market. So that just kind of gives you an idea of what's going on. A seller's market is one to three months of inventory, which means there's not a lot of homes like you see here. Prices are going up, which you're going to see right here, big time. So four to six months is a balanced market. Seven-plus is a buyer's market. Meaning there's tons of supply and prices are going down, subsequently.
New homes in the market
This is a month-wide number. How many new active listings actually came onto the market? Two thousand three hundred fifty-four two years ago, 2,237 last year, and then only 1,884 this past month or this past August this year. That is again crushing going forward. It's going to be very interesting to see what happens going forward. Obviously, buyer demand is down a little bit, but supply is down even more. And that's why you see these inflated prices here really going up.
Price per square foot.
One hundred four dollars two years ago, $112 last year, $187 this year. It's insanity, absolute insanity. If you multiply your square footage by that number, it gives you an approximate value. However, this is a county-wide number. It's a rule of thumb. Just kind of take it for what it's worth because we want to see the pattern here. Things are obviously increasing. There's not a lot of supply so prices are going up. If you want someone to actually give you an appraisal on your home, you need an appraiser. You need someone on our team. You need some type of professional to actually come to give you a neighborhood analysis on what's going on in your specific area not just county-wide. But again, I still go back to this number. That's amazing! Just going forward, it's gonna be very interesting to see what's happening when they're just not the supply there to meet demand. At least if demand stays the same.
Number of sold
This is the people actually sitting at the closing table, several transactions actually closing - 1,476 two years ago, 1,429 last year, and then 1,454 this year. So again, a little bump up just like we saw in some of the other counties, actually this year. That's actually bumping up now again, unlike we've been seeing. So that's huge. That's actually a really, really good sign. We're actually seeing that kind of across the board. I was wrong in the other video I did for Livingston County that I think there's only one county who didn't have that. I think Genesee was the only one that didn't have that, but it looks like all the other counties have that. So that's huge. That is a good sign. We're going to take that positive because there's still a big attraction to supply here. Gotta stay tuned in. It's got to stay plugged in because I don't know what's gonna happen.
No one knows what's gonna happen. I've been digging and researching. Our team has been, I can't find any economists. I can't find any investor, any hedge fund. No one knows what's going on. So they all put out data and I'll put out videos and content and we come through all that stuff. No one knows going on. The forbearance crisis coming up in 2021 or 2022. People already behind, unfortunately. But it's a result obviously of people being out of work and the entire world being shut down. So this is something that has to be plugged into most people's biggest investment. Where's your equity at? Do you have equity? Are you going to be underwater? Are you underwater now? How can you navigate correctly in this environment? That is the question going forward. As I said, the trends are your friend in investing, in life.
So I appreciate your time and your energy, your attention. If you go to our Facebook channel, YouTube channel. Questions, comment there, we get back to them immediately. So let us know. Again, as I said, I appreciate your time and your attention. It's the most important thing we have and we'll see you guys at the next one.