January 2018 Real Estate Market Update – Macomb County, Michigan

We've got the January and Macomb County Update for you. We're going to dive right into it. Like I said, January says the past month. People ask me this all the time. “Brandon, why you're doing something that's behind us?” Because we get the stats from the previous month and that's where we can accumulate everything because the month is over, so we do the prior month so we can see the patterns going forward, so we do the two years previous and then we gauge that against this past year, months or looking at January of 2015, January of 2016, January 2017.  

Days on Market

The very first one days on the market. We see a big decrease almost 20 days decrease time on the market, which is incredible. This is really super, super low. You're going to see all these numbers really are geared toward a seller's market. Obviously, you see that pattern like you've seen in the press updates after properties. So again, huge decreases over 15 and 16 and again another big percentage drop between last year, last January, this January. So again, very, very low inventory and this is why buyers are struggling so much right now. This is why the sellers are getting a lot more money for a home, You're going to see in a second.

Month of Inventory

Three months, one month, one month. This is a ratio to basically tell you what kind of market it is, and it kind of gauges these numbers in a way. It tells you the speed of the market. MOI or months of inventory means at the rate homes are selling, if no new homes come to market, how long will it take for every existing home to sell? Again, one month, that's about one month. Again, the rounded a but about one month. That's incredible. That's really the fastest you can get, good market, about five, six months. That's a balanced, healthy market. So we're a long way off from that. And that's why it's so hectic right now in the real estate market.

Active homes on the market

New homes. So these are active homes, these are the new homes coming online in that month. And again, another sharp decrease from 15 to 16, but another sharp decrease from last January to this January. So again, all feeding into that narrative of a seller's market. So everything you hear about being a seller's market, that's totally true.

Price per square foot

You see huge increases here as well. Almost a $20 per foot,  increase. And really, this is a generality, I mean, this is not obviously every subdivision in every street. This is overall as a county. So it just gives you an idea, that “Hey, you know, your values have gone up basically about $20 a square foot over the last two years.” So it's just giving you an idea. You got to get with an appraiser, you got to get with your real estate professional, a team, a real estate agent in order to get your true valuation in your home.


And lastly, sold. You're going to see, this doesn't scale, it doesn't change very much. It doesn't change too, too much. This is a buyer's market, these are all gauging an inventory and sellers. This gauge is buyers and you can see that the buyer inventory or the buyer pool doesn't change that much. It really doesn't. Unless there are big things like crashes, the recessions, it just doesn't change that much. So you've got pretty similar numbers regardless of what's going on here. You've got pretty similar numbers as to what's going on, as to what was actually being sold.

So I hope that gives you guys a little glimpse into the market going forward. You can make the correct decisions for you and your family. Like I said, as a buyer, they're watching a little bit for. You've got all-time low-interest rates, which is amazing. That's something that's really the silver lining, but you have to understand that this market is extremely fast. It is low inventory and you're fighting, fighting and fighting with a bunch of other buyers out there. So it's a patience game. You have to be patient, you have to be ready, you got to get your finances in order, and you've got to be ready to go and strike when the time is up. As a seller, you have to do your due diligence. You've got to understand that in this market, your home is generally going to sell out pretty fast. So what that means is you've got to be prepared to either jump into this market and be one of the people in his buyer pool down here and fight it out. Or you've got to be ready to rent something or live with a family member or parent, friend, whatever it may be, which in some cases we know people doing that because they want to take the equity out of their home. Then they want to stay and sit in something maybe until the economy corrects or whenever it may be. So those are options and things you have to think about when you're going into this.

So I hope that gives you guys an idea. Like I said, and I appreciate your time and energy and all of you are reaching out to us asking for these updates and asking for different things and the Q and A's that we do, so I appreciate that a ton. You can check out on our Facebook here or YouTube channel and we appreciate it. Lastly, we appreciate your time and energy because it is the most important thing we have. We don't get any more of it, so we appreciate that and we'll see you guys very soon.