October 2020 Real Estate Market Update – Macomb County, Michigan
So we have a couple of things here that I always preface. We've been doing it for five years and I preface with two things - we're doing the month in arrears because we have the data. It's all finalized. It's in. We have three years of data because one year wouldn't make any sense. The trend is our friend, remember that in investing. Believe me, you are investing. You are investing either an asset or a liability when you're in real estate. We've talked about this many times. In one of our videos, we've talked about the difference between assets and liabilities. We'll save that for another day, but let's jump into this.
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Days on market
Thirty-Four two years ago, 39 last year, and 29 days this year. We've seen this across the board, a big drop-off in inventory, a drop-off from days on market as well.
Active Days on market
This is a one-day number. When the data was taken, how many homes are on the market at that time? One thousand seven hundred twenty-one two years ago, 1,951 last year, and 1,094 this year. So we're seeing about a 50% retracement really across the Southeast Michigan area, which is sanity.
Months of inventory
One, one and a half, and then 0.75. A seller's market, crazy seller's market. One to three months is a seller's market, four to six is a balanced market. Seven-plus is a buyer's market. So we are in some crazy time right now. Just absolute insanity, truly. Keep playing away and sellers are making out, but again, it's going to scourge buyers. Eventually, if we keep running into this and keep running into just battling and battling and battling.
New homes in the market
Two thousand two 2 years ago, 1,998 last year, and then 1,734 this year. This is a month wide number. How many homes actually came into the market during that entire month? Well, we have a decrease here going forward, a fairly big decrease than we've had. And we already had low inventory in the years prior. So we have some interesting times ahead - November, December, January, February. We'll see what happens there on the sold side when it ends up cleaning out. We have low inventory and we've had this. Lower interest rates don't seem to be necessarily helping the market. Prices are going up at the time because of that. Things are flying off the shelf, but there's not a lot of inventory on the shelf to go around. So some people are distorted and have dropped off.
Price per square foot
This next one, again, we're in an anomaly over here. And this happens sometimes where you've got one number and a bunch of anomalies. Prices for a foot was $180 two years ago, $160 last year, $126 this year. You might say, "Okay, you know, what's going on here?" I should say this is probably more than an anomaly. This probably went up to $115 and then this one at the $126, something like that. If you have some brilliant maximum priced homes go off the market, different things happened with these few other numbers. You might have that here. So if you take that and multiply by your square footage, you're gonna get an approximate value on your home. However, if you want, if you truly want a valuation on your home, you have to have someone on our team, an appraiser comes, and actually value the home. Because this is countywide data. It doesn't take into consideration yours or a specific house in your neighborhood.
The last one here - this is the people actually closing on a home, actually sitting down on the closing table and closing. One thousand four hundred one two years ago, 1,303 last year, and then 1,474 this year. So we're seeing it a little bit of a jump up this year, really across Southeast Michigan. But again, that's because we have a big glut of homes coming off the market really the last few months. And now it's starting to turn the other direction. We have a lot less inventory going forward. So it's gonna be very interesting. Remember, this isn't like, "Oh, we're comparing each other amongst each other." This is just all October, just different years we're comparing. So we have way less inventory going in the market going forward here.
So it's very interesting times. Stay buckled in, stay tuned. We're going to get this data to you constantly like we've been for five years now. Because we appreciate your time and your attention. And in our mind, the biggest assets we have - using or feeding our mind, using our time to feed our mind. And that's the biggest thing we can do that way we can make great, detailed, informed decisions. If you're on the podcast, go to @legacygroupmi. On our Facebook or YouTube channel, go for your questions, comments, concerns there. We will answer them. And then we will see you guys at the next one.