February 2020 Real Estate Market Update – Macomb County, Michigan
We have your Macomb County February 2020 Real Estate Market Update. We know there's a lot of crazy things going on in the world right now, in the country obviously, housing, health is number one. Housing is important. The show must go on because with the market doing crazy things, we don't know what will take place going forward. For most people, their house is their biggest investment. Their house is where most people's equity lie. A house is a lot of people's retirement. That's why it's important. That's why this is so important to continue doing that way people can know exactly where they stand and know what they need to do in order to move forward. Whether it's refinancing their house, getting better rates, better payments on their house, lower payments, whether it's selling their house, pulling out their equity with refinancing or whatever it may be. Maybe the market's going down and it's a good time for you to buy a house and get out of your rental payments, whatever it may be. This is why it's important to be going forward and doing this that way you know exactly where you stand regardless. So we will bring this to you, whether it's from the office, whether it's from home, wherever it may be, the show must go on. We will bring this to.
We always preface with two things. We have the month in arrears because we have the data fresh, hot off the press as they say. We have three years of data that way you can see the pattern. If we showed you one year of data, it wouldn't make any sense. Right? So let's jump right into this.
Days on market
DOM, anytime you see that 49 days two years ago, 48 last year and 60 this year. We're seeing a little jump this year in the number of the counties. Again, of the 18 numbers, sometimes you have one or two anomalies, outliers in these numbers. We'll see how this plays out going forward. But I have a feeling that's a little bit too high. It probably should be in the 50-somewhere, but who knows? It could be 60. Things have been sitting a little bit longer this year. I should say in this past month or two.
Active homes in the market
This is the number of active, total one-day sample size though. How many homes are actually active at that time when the data was taken? One thousand eighty-three two years ago, 1,323 last year and then 1,360 this year. More active homes. So it's probably more of a sign of homes sitting longer that's why we're seeing longer days on market leading to more homes active on the market.
Months of inventory
One, one and one and a half. Now we don't have decimals from the other ones. They're probably around the same thing. Maybe even a little bit lower here in these other previous years. Months of inventory (MOI) is that the rate homes are selling, how long would it take to sell every last home with no new homes coming on the market? It's a very quick ratio to know where you are in the market, what kind of market you're in. So to give you context, one to three months is a seller's market. It means there's not a lot of inventory like we are right now and the prices are going up. Four to six months is a balanced market and seven-plus is a buyer's market. Meaning there are tons of homes to choose from and prices are going down.
One thousand two hundred eighty-four two years ago, 1,238 last year and 1,350 this year. So we're seeing an increase in the number of new listings that actually came onto the market this month. That is a month-wide statistic and it's a number of new listings that actually came onto the market in that month.
Price per square foot
Ninety-one dollars two years ago, $93 last year, and then $102 this year. Again, the trend is your friend here. We're seeing equity going up. We're seeing prices go up, obviously, because of some of these other factors. If you take that and multiply that by your square footage, you're going to get approximately what the price of your home is. Remember, this is a county-wide number. in Macomb County. It's a very big county and it takes them to a lot of different cities obviously, right? When you're doing an appraisal on your home, you're gonna take a very small area. You're gonna have your appraiser. You're gonna have a professional, like someone on our team, come and actually appraises your home. You're going to take a mile, basically. It could be just your neighborhood, a mile. They're going to take that and they're going to give you your actual value. But this, as I said, is more important to see the pattern. Macomb County has been increasing in the prices of homes.
It's actually people writing, signing on homes, closing at a closing table. Eight hundred fifty-one two years ago, 899 last year and 902 this year. Pretty consistent with the number of sold properties actually. That's where you see some fluctuations in the listing data, but the sold tend not to change too drastically unless there is major economic fallout, something like that. It's good to see that those are up a little bit and they've stayed steady or gone up. That's always good to see. If they ever go down, that's not good. That means we're in a deflationary environment possibly and there's really economic gridlock, which is not good at all.
That is the market update for February 2020 in Macomb. I appreciate you guys joining us. If you're listening on the podcast, go to @legacygroupmi, go put your question, comment, the concern there. On Facebook and YouTube, share it with anyone that might be interested. We appreciate your time, your energy, your attention. It's the most important asset that we have. We will see you guys in the next market update in probably about three, four weeks and the next content we put out. But again, as I said, the show will go on because we have to get this data out that way people can make informed decisions on there. They're likely their largest investment they've made. So appreciate you guys. I'll see you at the next one.