May 2020 Real Estate Market Update Macomb County, Michigan
We have your May 2020 Macomb County Real Estate Market Update. Let's jump right into this first thing. Before we jump in, though, I want to extend my good wishes. Hopefully, most of you and all of you are healthy. Your families are healthy and nobody is affected or infected with this disease. We appreciate you guys joining us because we know how crazy the times are and many people are suffering. So I appreciate you spending your time and energy with us here in getting information on most people's biggest investment they make in their lives. So like I said, through hell or high water, we're going to be giving this information to you. We've been doing this for five years. We're gonna keep doing this because this I know help me in just 'hugely'. Is that a word? Helps me big time. Just to be able to prepare our clients, our investors, our business partners for the road ahead of what's going on, and knowing this data is huge. I know it's helping me do it. I need to do, hopefully, it helps you and helps me make investment decisions. Hopefully, it helps all of us make better decisions. So let's jump right into this.
We always do the month in arrears because we want the hottest data right off the press. That month is wrapped up. Now we're good to go. Then we have three years of data because we want to see the trend. The trend is your friend. We want to be able to see what's going on here. If we just gave you one year, as we did in the first year we were doing this, learning and making our way through this. It wouldn't make any sense. So we have three years of data that way it makes sense You can see the patterns and the trends.
Days on market
Thirty-three days on market two years ago, 35 last year, at 43 this year. We're seeing this across the board, a jump in the average days on market, which makes sense considering what we have gone through.
The active number of homes in the market
One thousand one hundred thirty-six, 1,512 last year, and then 1,211 this year. This is month wide. I did that last time too, for one of the other counties. This is a one day number. So this is at the time the data was taken, how many were active at that given time. We'll get a month wide number here in a minute.
Month of inventory
One two years ago, one last year, then two this year. So again, jumping up a bit. This is a quick ratio to tell you what market you're in. And just to give you context, one to three is a seller's market, four to six is a balanced market and seven-plus is a buyer's market. We want to be able to know where we are quick. Boom! You look at the Months of Inventory to tell you what market you're in. So if you're a buyer, it tells you, "Hey, we're in a seller's market. Prices are gonna be a little higher." If you're a seller, you're like, "Hey, cool. We're still kind of in a buyer's market or a seller's market here in Macomb County, not a lot of inventory. So I can still sell my home and get my equity, pull it off the table." Months of inventory is at the rate homes are selling, how long would it take to sell every last home with no new homes coming in the market? I just want to make sure I threw that in there.
New homes in the market
This is the month-wide number. This is the number of new homes actually that came onto the market, new listings that came onto the market during the entire month. Two thousand sixty-one two years ago, 2,188 and then 1,711. Again, another decrease in the number of homes in the market going forward. The market is getting squeezed and squeezed and squeezed and contracted. We already had low inventory here. Going forward, it will be very interesting to see what's going on. But it's good to see that the numbers are up a little bit. That is huge.
Price per square foot
A hundred four dollars two years ago, $111 last year and $97 this year. Again, a little bit of a drop-off here, and it doesn't surprise me a ton. We're seeing these numbers kind of go up and down, but just depending on what's going on in the market. If there's supply contraction or growth, it makes these numbers kind of jump a little bit. This is a county-wide number though. If you take your square footage and multiply it by this, it would give you about the value of your home. So we are seeing this kind of dip a little bit now for the first time in years. We're seeing these dip now, the prices, a bit. Again, if you want an actual value in your home, you have to have an appraiser come out or someone on our team, a professional to come to give you a value in your home. Remember, this is countywide data.
Number of sold
This is your buyer statistics. This is how many people closing on the home. How many people are sitting at a table, closing on a home? I always say this number doesn't change much unless there are Black Swan events, there are anomalies. And boy, do we experience one. One thousand four hundred thirty-six two years ago, 1,385 last year and 539 this year. Are you kidding me? We see this across the board, 60% to 75% drops in closings. The last few months have been insane. We all know that. We're seeing this for the last two months. We've seen 6%0 to 75% drops in closings. We're seeing these numbers will come up a little bit, which is good. It's a better sign for going forward. But boy oh boy - the last two months rough in the real estate market.
So hopefully you guys got something out of this. If you know somebody in Macomb County, please share them, share it with them, tag them in it, message them. We just appreciate you. We appreciate you spending your time and energy with us. It's the most important asset we have. So thank you so much, we appreciate it. If you're on the podcast, go to @legacygroupmi. Go check this out, go question, comment, concern, whatever. And we'll get back to you. We appreciate you guys and we'll see you on the next one.