April 2018 Real Estate Market Update – Macomb County, Michigan
We have your Macomb April 2018 Real Estate Market Update and let's jump right into it. So we have, last two years, we do all this year and then we do the last two years. That way, we show you guys a pattern of what's going on. We've been doing this now for a number of years. You can find them all on our Facebook channel, go to our Youtube channel. Like it "Mitten Made Properties", a Youtube channel and go check out our playlist there. It's got all the videos, all the updates through the last couple of years. And, you could see the pattern of what's going on because if you don't believe me, you don't want to take one sample size. You don't want to take one month. We want you to see that pattern so you get a feel of what's going on.But this is why we do the last couple of years. That way you guys could see in just one video in the last couple years what's going on. Right now we have a massive, massive Mccomb salary market. Well, it's like that in every county, Genesee, Macomb, Livingston, and Oakland. You name it. So as far as I know, there's a lot of buyers, not a ton of homes for sale. A number of reasons why that is, two of the biggest being allowed that builders are gone. And yes, I know bills a Brandon and there are builders CRC building, "building" going on. You have the big, big national builders like Pulte, all it. Those, you know, two, three hundred unit subdivisions going in are no longer people are in, you know, that's not happening like it was 10 years ago. If you remember, there's a lot of vacant property sitting for years after the great recession is because of those kinds of property is sitting vacant, not being funded, not being bought etc.
A lot of those builders are gone. There's Regional Builders building one off-building custom homes. Building nothing near what we need to sustain growth and what's going on. One of the other big reasons is because of institutional investing. After the recession, investors were looking for places to make money and they are looking to put the money that you have in your 401K or in stocks, wherever it was. In funds, and they were looking to get a return for you. So what do they end up doing? A lot of them ended up buying a lot of single-family homes, a lot of property, and they're getting great returns on them and they still are. And if you've noticed, rental rates have skyrocketed over the last handful of years because we've got a lot of renters out there. We have about 61-62% right in their home ownership nationally before the crash. I think we, I believe we touched 70%. We might 69%, 70% nationally. So we still have a long way to go to get back to the homeownership rates that we had. It might be up towards 65, 64, 65 now. I think we went down to 61 maybe in the depths of the recession. But I have to check on that I think has come up, I've
seen stats that said 65%, but anywhere from 60 to 65% and we were at 68 to 70
percent home ownership before the crash. So just think about how many homes,
how many people were owning homes and now they're not. And that's another story
for another day. You can get into that, parcel that out and we won't get into
that today. But that's, those are the stats and the numbers don't lie. And so those are the big reasons people are making great returns. So they're not selling a homeless. You've got a lot of people stuck in rentals, can't save money and they're now in rentals that they otherwise wouldn't be and they would have bought homes and sold homes. And now it's just one big vicious circle. So, we jumped right into your days on market days
Days On Market
Days on market is 55-45-36 days. So again, we've seen this about a 10-day drop. Average days on market each year. Again, because homes are selling very quickly. It's a seller's market is now a lot of homes out there. So you see this continual trend that keeps on going.
Active Homes On Market
The number of active homes. Look at this drop 2,660 all the way down to 1,060. So we've
had what, sixteen hundred home drop in two years. Sixteen hundred over a half, as almost a third. Literally almost a third of the homes we had on the market two years ago, just two years ago. Two Aprils ago. So think about that. I mean, it's just absolutely incredible. Why is, why buyers are struggling right now? This is why it's so hard. People do not believe me. It was one of our realtors with joking around today actually, that people don't believe, "people don't believe what's going on until they've lost one or two homes". They do not trust their realtor for whatever reason. And, fortunately we have some ways around that.
We've got some cool things in different ways to win offers. And I mentioned them on the other videos that we have a resource, you know, how to win, how to win multiple offer situations? That's a resource that we have. So, you know, we'll put a link to that and you get that there, free resource. But anyway, this is, this is why, this is why people are
so frustrated and you know, it's human nature. People don't get it. They don't learn a lot of times too. They experienced themselves. I know I'm that way a lot.
Months of Inventory
Two months, one month, one month. This is basically a ratio showing you the speed of the market and basically kind of taking these numbers and putting it into a ratio. Month of inventory is at the rate of that homes are selling. How long would it take every last home to sell if no new homes hit the market? So right now, it will be around a month and these numbers are rounded but still, at about a month and how many markets, about four to
seven months? About a four to six months? So you can see how fast the market is
right now and then anything above about 7 months, 8 months, 10 months at month.
That's when there are too many homes in the market. We had 8, 7, 10, 15 months of inventory back in the recession and nine, 10, 11. So, this is a ratio that kind of shows you in some, they're everything up.
New Homes in the Market
So these are new homes coming onto the market. These are the ones that are, are sitting there in what's actively actual inventory. These are how many homes came onto the market this month. How many of them are new this month? And we had 25 two years ago, now we're down to 1800 new homes. So again that supply is dropping, not as many homes are coming into the market. So which again poses a problem. Poses the problem for those pools of buyers. One of the other reasons there's a lot of buildup and traffic going out
in the market is because you have a lot of people now. We have pretty much every one of the last two years is why you see a lot decrease also. All the foreclosures, everyone, short sales, foreclosures, that seven-year window that you can't borrow anything. That seven-year window is pretty much up now for a lot of the people you know, 2011. We have a lot of foreclosures, you know, all way to 2011. Instead in number after that obviously, but you have a lot of those, those big foreclosures that hit. They're now that seven-year window is up. So, you're seeing a lot of people jumping back into the market and there's not a lot out there. So you know, when there's too much demand and not enough supply, prices go up and people get angry.
Price per square foot
This again, and I say this in every video, sometimes they are numbers that are abnormalities there. There are little hiccups in sometimes because there's none of data in a certain sector or something weird happen or a lot of the homes happened to me in one neighborhood that month or whatever. Whatever it may be, this is one of those categories and in one of those numbers that there's a little hiccup. See, we had 85 few years ago, we had 99 now. So if you think about it, probably a normal number. Probably would have been 90, $93 a square foot here and that would probably make sense. A steady increase is usually what we see. For some reason it was 218. Don't ask me why. I don't know if it was just all million dollar homes being sold last year in Oakland and or Macomb County or what. But sometimes you have this, you gotta take those with a grain of salt.
So the other 17 numbers are showing us one thing and you've got one number at six out of times. Sometimes that happens, don't worry about it. So now, basically the buyer stat I call it this a lot of times will show us kind of how many buyers are out there and what's actually going out of the buyers. These are really kind of seller stats. These are the buyers. So
this kind of shows us that, "Hey! There's 1500 now, there was about 1250 that were sold." So again, it's dropped off a little bit, but this number usually as you see month after month, year after year, county after county as number doesn't change that much. It just doesn't because the buyer pool generally stays the same. It goes up and down a little bit. Usually it'll have a huge, huge change unless you have like a recession, you know a great recession where a lot of people fall on the market and if they're gone for the market or
whatever. But, this is telling buyer's statistics.
So I hope that makes sense guys. I hope this is something that helps you make decisions for you and your family. This is the Macomb April 2018 update and I hope this helped you in some way or another. If it did please let us know. Throw us a thumbs up or something like that. That'd be awesome. That way we know that people are getting stuff out of it. But let me know if you have questions about it. Let me know if there's other stuff that you
guys were looking to learn. A lot of Q and A that we do. Obviously we want to keep getting that out there to you guys. But, this is that the market update from Mccomb. So again, use this. Oh! And one last thing, the square footage, this is a basic common, you know, this is a don't use as gospel. You gotta get an appraiser. You got to get a market specialists or real estate agent out there to do an appraisal in your home. This will give you an idea,. if you
multiply your square footage times the price per square foot. This is county-wide. So it's a very general, broad number. Don't take it as gospel. you use it as a simple guide, a simple guy to know, okay, is my home worth 200 or it's worth 400? And this will kind of let you know what ballpark you're in. And then you can start ratcheting it down later. So I hope you guys got something out of this. I appreciate your time and energy more than anything
because it truly is the most important thing we have. We really are humbled and honored to have your attention. So, we thank you and talk to you soon.