Hey whats up guys, Brandon Gentile here, Legacy group real estate team.
We have your Macomb county May 2018 market update, lets jump right into it.
So, we have questions that I get all the time, two of them. Why are you doing May and why you have three years of data. And the answer is very simple we do the data in the reverse because just like united states does a job report at the end of each month. So we do ours the first Thursday after the month has ended because we have all the data by then. The numbers tell us a story. Robert Kiyosaki is one of my biggest mentors, he talks about numbers telling us the story. The patterns tell us a story and that’s exactly what this does.
This is showing us three years of data so that we can see the pattern and where the market is going and what it’s doing. And this is something that I do as an investor, as a business owner as a human being as a family man, whatever you want to call to make a good investment decision. This is what I go by. When I am advising clients, this is the kind of data that I use to help them.
So, let’s jump right into it and remember this is just Wayne County.
Days on the market:
DOM, ADOM(additional Days on Market) or CDOM (Cumulative Days on Market ) all of that is the average time a home is listed on the market. 51 in 2016, 38 in 2017 and 33 in 2018, which is incredible and these numbers would flush out why this is because it is such a solid market you have a such a huge drop in time that homes are spending on the market. So that is an amazing huge drop.
Active homes in the market:
Look at this drop, literally over half the homes are gone from the market. So just in the last two years, that’s why we have such a huge decrease in time on the market. That’s why we have a month of inventory cut in half. This is remarkable, I mean there are no homes are on the market. This is why sellers are winning so much and buyers are battling this out. So be patient if you are a buyer and be prepared if you are a seller.
Months of inventory is MOI and that is at the rate homes are selling, if no new homes come into the market, how long would it take for every last existing home to sell? We round these numbers just because you know what an average is. A balanced market is about 5 to 6 months of inventory. Right now we are struggling, steep seller’s market. In the recession, we saw 8, 10, 15 plus month of inventory because there were so many homes in the market because of the foreclosures. It’s a ratio of all these different numbers, a quick way to look at the numbers and see what kind of market it is.
New homes coming in the market:
We had a little bit of drop in the market, these are new homes that were listed in May, not existing homes but new homes. That’s good, didn’t change too much, it did go down a bit but it’s good to see it didn’t change too much. May was a decent month for homes coming into the market.
The reason this is a little bit different because when we take active homes at this time, 2000 in May have come in the market, but a lot of homes have sold. So the date when we took that data, there were only 1136 active. We only had one day of data as an active data point and that’s why its number might not make sense. But it gives you an idea of the market.
Price per square foot:
This is a big increase, almost $20 increase per square foot, over the last year. And this is county wide, this is all Macomb county. So if you are looking for true analysis of your home, you need a real estate professional come up and do an analysis of your home. You can have our team come up and do a full analysis of your home and give you exactly what your home in that range would be worth and what you should sell it for. This gives you a guide of where my house at in general, is it $150,000 or $450,000. So it just gives you a basic rule of thumb to use.
The number of homes Sold.
This, fortunately, hasn’t changed too much, the buyer tool doesn’t change too much unless there is a catastrophic event like a recession or a disaster. So this number doesn’t change too much, it has changed a bit because there are fewer homes in the market so you are not going to have that many sales.
This is a buyer’s stat, all the above are the sellers stat. This shows you information on the buyers pool.
So, if you guys have questions on this please send me a message or comment here. Share it with somebody who might be living in Macomb County and might need this and benefit from this information. We appreciate your time and energy and this is important to us.