January 2020 Real Estate Market Update – Macomb County, Michigan
We have your Macomb County January 2020 Real Estate Market Update. Your first one in the new decade. So let's jump right into this bad boy. We always preface every market update with two things. We have the month in arrears that way we have all the data hot-off-the-press and we have the three months of data or three years of data that way you can see the trend. If we just gave you that year it wouldn't make any sense, right? So we have three years of data that way you can see the trend going forward. Remember again, "the trend is your friend."
Days on market
The first one is DOM and anytime you see that that's average days on market. Forty-two 2 years ago, 47 last year and 52 this year. So a little bit of an increase in days on market. We're going to dive into the rest of these numbers and see why that might be.
Active homes in the market
This is a one-day number. At the time the data was taken, how many homes are active on the market? One thousand one hundred thirty-four 2 years ago, 1,488 last year and 1,476 this year. Again, we see an increase over the last couple of years and kind of steadied over the last year or so which is good. It's good to see because we really are hemorrhaging homes back here as we can see here in this next stat, which is the month of inventory (MOI).
Months of inventory
That's at 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 really quick ratio to see what kind of market we're in. So we had one a month two years ago, we had two months last year, and two months this year. Just to give you guys some context, one to three months is a seller's market. Meaning there's not a ton of homes for sale and there's a lot of buyers out there. So prices are going up. That's a market where we see ourselves in now, obviously. A seller's market. Sellers are really making out. Four to six months is a balanced market. Then seven-plus is a buyer's market, meaning that there are a lot of homes out there for sale, not a lot of buyers. So prices are going down. We usually see that in recessions, depressions, things like that.
This is the number of new listings that actually came online during the entire month. This is a month-wide stat. One thousand two hundred ninety-five 2 years ago, 1,523 last year and then 1,371 this year. We see a little bit of a decrease in new listings going forward. So it can be interesting to see the numbers in the few months what actually happens succeeding this, right?
Price per square foot
It's basically you taking this number and that is the value of your home. You're taking that number and you multiply it by your square footage and it gives you approximately your value, I should say, approximate the value of your home. You really need a professional, an appraiser, someone on our team to come and do an evaluation in your home. If you're going to go actually want an evaluation because this is a county-wide number. Remember that in every city in Macomb. It's a county-wide number. So this, more importantly, gives you the trend of what's going on in your county. We had $93 two years ago, $98 a square foot last year in $103 this year. Again, we see a trend of appreciation going forward which is a very good thing for homeowners. It makes it tough for buyers obviously. We have lower interest rates and that's the silver lining for buyers. But again, we see that trend going forward, which is good for homeowners and their equity.
Number of sold
That is the number of people actually closing, putting their signature on paper, actually closing on a home. We had 938 two years ago, 866 last year, 913 this year. We've seen kind of a steadying you could say over the last two years, which is good to see. But that's really our buyer's statistic. We can actually see how many buyers are in the market and that usually doesn't change all that much. Unless, again, we talked about earlier - depressions or recessions, things like that. That stayed somewhat constant, which is good to see. But you can see that discrepancy obviously in the number of homes that came on the market and actually how many people will actually close. Right? So there's always that little discrepancy there. That's why there are homes that sit in the market for a couple of months. Not every home was sold within a couple of days, a couple of weeks, a couple a month or so because they're not always priced right. They're not up to standard. They're not redone. They're not renovated. Things like that. So that's why it's really important to talk to a professional about getting your home ready to sell so you're not one of these people that are going longer than that. Obviously, luxury listings and listings that are priced higher are going to take longer. But if you're in that $100,000-$500,000 range, you really should know. These stats are stats for your property in essence. As I said, if you're in luxury land then you know these stats, you can probably double or triple these quite honestly.
Anyway, I just wanted to give you guys this, get in and get out, get the info you needed. If you know someone that could use this info, maybe you live in Macomb or maybe you know someone who lives in Macomb, please share it with them. If you're on the podcast, go to @legacygroupmi, on YouTube channel or Facebook to put your questions, comments, concerns. We will answer them there. We appreciate your time, your energy in spending with us because it's the most important asset we have. We appreciate you. We'll see you at the next one.