October 2018 Real Estate Market Update – Macomb County, Michigan
We have your October 2018 Real Estate Market Update for Macomb County. Let’s jump right into this and I always preface every one of these market update videos with two things. We always get asked why we do the month previous and why do we have three years of data. We do the month previous, in arrears, because we want all the data. The month has now ended. We have all the data hot off the press and now we can give you everything you need to make informed decisions. That’s why we do that. And the second part of that is we have three years of data because we want you to see the whole picture. “Numbers tell a story” as Robert Kiyosaki famously always says. We want to see a pattern and when you only have one year, if I only give you 2018, you won’t know what’s going on. It won’t make any sense to you, but because you have three years of data basically giving you the numerical version of the technical analysis. If you’re a stock investor or maybe real estate and you look at charts and you looked at Econ 101 or wherever you want to call it, there are uptrends, sideways trends, and downtrends. We want to be able to see in numerical form or basically kind of charting that to see what kind of trend we’re in, what kind of market we’re in. And as they say, “the trend is your friend,” so make sure you are making decisions according to what kind of trend you’re in. So let’s jump right into this.
Days on Market
DOM, if you see anything like ADOM, CDOM, additional days on market or cumulative days on market. It all has to do with days on market, average time spent on the market for a listing. Again in Macomb, we have a bit of a decrease from 2016 to 2017. It stayed the same actually this past year. It equaled out a little bit, balanced out a little bit over the last year.
Active Homes in the Market
this is a one-off number. So basically one day at the end of every month, and we take the data. This is how many homes are active on that day when we looked at it. So it’s not a month wide number, but it gives you an idea of what kind of pattern are we looking at. It stayed fairly. That trend line is going the same direction basically, which it’s gone down. It was just not as much inventory over the last year or two.
Month of Inventory
Now, months of inventory is a ratio and it’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? That is what this stands for and this is a ratio for pretty much everything we’re looking at. A really quick ratio to say this exactly what’s going on and I don’t need to look any further. I know what market we’re in. And just to give you context, seven-plus months, that is a buyer’s market. Four to six is a balanced market. Then one to three months is a seller’s market. So we can see here that we are still in an extreme seller’s market. In 2008, we’re at 9-10 weeks. We had 10 months, 15 months of inventory, so we can see we’re very far off from where we were there currently. Not much inventory compared to the number of people trying to buy a home right now.
New Homes in the market
No,w this is a month wide-ranging look at what’s going on. How many homes were listed, newly listed homes that month? And again, this has stayed pretty consistent actually over the last couple October. It’s good to see and we’ve actually had a fair amount of new homes come on the market. So the next month, it’s gonna be interesting to see how many homes are still out there, how fast are they selling because we’ve actually had an uptick in homes in the market. So good to see because we’ve not had much inventory over the last couple of years. So it’s good to see some of these numbers starting to tick up a little bit and just create a little bit more of a balanced market.
Price per square foot
This is basically a general rule of thumb. If you’re looking to get a price on your home and a true value, you need a real estate professional. You need someone on our team, you need an appraiser to come out and look at your home and give you an analysis and reporting on your home. But this gives you a pattern, a trend as to where is the market going, where are we plotting this point from the graph, where are we going. Price per square foot, again, you take your square footage and you multiply it by this number and it’ll give you a rough average, a rough estimate of what your home value is at. Over the course of the last couple of years, the county really has appreciated over the last few years. So again, that gives you that pattern as to what’s going on.
This is a number of sold homes, closed the home in that month. This number hasn’t changed all that much either and we usually don’t see a huge change in that number unless there’s a catastrophic event like a recession or depression and something like that, so that’s good to see. This hasn’t changed too much even though there’s been some fluctuation here. This has not changed all that much and that really is our only buyer statistic as to what the buyer pool looks like.
So I hope this kind of shed some light into where we are in the market. If you live in Macomb County or you know someone in Macomb County that we could help, please share it with them. Questions, comments, concerns, please let us know. We get a lot of direct messages from you guys and texts and emails and things like that. We love that. We always ask everyone to try to keep the comments and everything inside the Facebook feed. That way we can have a dialogue with everybody and everyone can share and learn and grow from what’s being said. There are not one-off conversation. So I appreciate you guys, your time more than anything because it truly is the most important thing we have. We look forward to seeing you on all of our other videos and our other market updates.