July 2019 Real Estate Market Update – Macomb County, Michigan
We have your Macomb County Real Estate Market Update for July 2019. Let's jump right into this thing. We're gonna try to keep this under five minutes so you guys can get in and get out, get the information you need. We have a couple of things that I've prefaced every video with. Three years of data that way you can see the trend. We always want to be able to see the trend, which way the direction of the trend is going. Remember, "the trend is your friend," as we say in investor land. If I just gave you this year's data, it wouldn't make any sense, right? So you want to be able to see where the pattern is going. We also do the month in arrears, we do the month previously because we have all the data. The month has ended, we have everything hot off the press. We can give it to you and give you the most accurate information possible. So let's jump right into this.
Days on market
Anytime you see that anywhere, it just means days on market, but this is the average days on market. Twenty-nine days on market for two years ago, 30 last year, and then 30 this year. So, pretty steady across the board, which is good. July is obviously a pretty hot month and it stayed fairly steady here.
Active homes in the market
One thousand fourteen two years ago, 1,273 last year and then 1,772 this past July. This is a one-day stat though. So at the time the data was taken, how many homes are active at that second? So it's not a month wide stat. More important is to kind of look at the trend here. So there are quite a few homes that were available this past July which hopefully is a good thing. We'll see here though.
Months of inventory
This is a very quick stat or ratio that you can see exactly where the market's at. This is a basic stance, at the rate homes are selling, how long would it take to sell every last home without any new homes entering the market? And just so you have an idea what's going on here - one to three months of inventory is a sellers' market. Four to six months is a balanced market and then seven-plus is a buyers' market. Obviously, we're in this land where there's not a lot of inventory, prices are going up. You get down here, we had that during the recession, stuff like that. Seven, 10, 15 months of inventory where there are a ton of homes on the market, prices are depressed. So again, one across the board. It's been a sellers' market for the last couple of July's, right? It's not changing anytime soon unless we have some big stuff happening, interest rates going down and stuff like that. They're trying to spark it. But we'll see.
New homes on the market
So this is a month-wide number. This is how many new homes came onto the market over the course of the month. There were 2,368 homes two years ago that came in the market, 2,213 last year and then 2,239 this July. So again, pretty steady across the board, which is a good thing actually. Really not much movement in these numbers, which is good. We just don't want these going down, which they're not, so that's good.
Price per square foot
If you multiply your square footage by this number here, this will give you your ballpark value. If you want to get an actual appraisal or evaluation in your home, you have to have an appraiser come or a real estate professional. Someone on our team come and give you a valuation on your home, look at your home and actually give you a report. So two years ago it was $102 a square foot, $107 last year and $111 this year. So again, trending up, there are not as many homes in the market. So the prices are trending up even though in some of these instances there's not or there is even a little increase in homes in the market. Still some of these lag, they are lagging indicators. Sometimes, human psychology, we still think the market's going up even though it's not. So sometimes it takes a while to change. We still have a trend here and that's what's important here. Your market, your area, your county is going up in value overall.
This is really our buyer statistic to see how many actual closings were had in the county. One thousand six hundred seventy-eight two years ago, 1,437 last year and then 1,468 this July. So again, this was really a big inventory shortage last year that we saw and was kind of a shock to the system. Well, guess what? Same thing this year. So there's just not a lot of movement here in Macomb county, unfortunately for buyers and there's not a lot of relief for sellers. Great, but then what do you do when you're going to buy, you sell your home? Now, what are you doing? I will say though, there are 55% of the transactions people moving out of state as compared to only 45% moving into the state. There are people taking their equity and running.
I hope you got something out of that. We want to get you in and out of here. That's your Macomb County update. Hopefully, if you are in Macomb County or know someone, please share, tag them. Thank you for your time and energy. It's the most important asset we have. And if you're on the podcast, listen to or go to @legacygroupMI, on YouTube, and on Facebook, go put your comments, questions, concerns there, and we just love answering them. So appreciate you guys and we'll see you in the next one.