We have your September 2018 market update for Macomb County. Let’s jump right into this. I’m going to preface this like I do every video, every market update video because we get crushed and still every single month about this and it is why we do a month previous and why do you have three years of data. We do the month in arrears because we need to know all the data. The month has ended now we can collect all the data from the MLS, the Multiple Listing Service and now we had the opportunity to see what is exactly going on. We have three years of data because numbers tell a story. They tell a pattern. We want to see exactly what’s going on. If I just showed you this year, it wouldn’t make any sense to you so we can show you the last couple of years that way you can see exactly what’s going on and you can see that pattern and where things are going. It’s like a stock trader, a stock investor, a real estate investor, anything they’re looking at charts. They’re doing fundamental analysis and they’re doing technical analysis. Technical analysis is when you’re looking at charts and graphs and you’re seeing which way the trends are going and in lately, for the most part, things have been doing this in the stock market and in the real estate market and we’re starting to see a little bit in the real estate marketing last month or so. We’re starting to see a little bit of sideways pattern. So this is what we’re doing. Basically, we’re doing it in number form. So let’s jump right into this.
Days on Market
We’ve seen a fairly steady decrease over the last few years from 45 all the way down to 27 days on market. A pretty significant dropoff and again, we’ve seen this over the last couple of years. The market really is getting a little bit crazy, a little bit overheated, and that’s why interest rates have been rising and things like that. It’s the Fed trying to pull their lovers to manipulate the market if you will.
Active Homes on the Market
This is a one-off number. This is something, we do this at the end of every month, so we take the number at the end of the month, so it’s not an indicative number completely. And you don’t want to take it wholeheartedly. You want to take it with a grain of salt because this could be on the 30th of the month and the 29th and it’s not giving you a scope the entire month if that makes sense. It’s on that day when we took the data, how many active homes are on the market, so it gives you an idea of what’s going on. Was there a 3000 or 700? So again, a little bit of a dropoff. Nothing too crazy since last year.
Month of Inventory
The month of inventory has stayed the same actually. MOI, the month of inventory means at the rate homes are selling, how long would it take every last home to sell if no new homes come in the market? So that’s what MOI is. Again that’s something we get asked a lot, but this is our simple ratio for you to know where the market’s at. A balanced market is four to six months of inventory. Anything about that – 8, 10, 12, 15, and up is a buyer’s market. Anything below five, four or five months is a seller’s market and when you’re down at one, it’s a very steep seller’s market as you can tell. So it’s a very simple ratio for you to see exactly what’s going on.
New Homes in the Market
So this is a better number. This is a month wide number and this means how many new listings came onto the market in that month. And you can see, been pretty steady the last couple of years. We’ve had about 2000 homes listed, new homes listed in Macomb County in the last couple of September. So not much change there actually. So it will be interesting to see what happens going forward.
Price per square foot
This has been going up steadily as well because of the decrease in inventory. As you can see, the dropping of the days on market and the decreased inventory over the last couple of years, we see that the price has gone up. Just simple supply and demand. Right? Macomb has been very out of whack lately and this actually is the most even-keeled I’ve seen the Macomb County market actually in a while, in many months. So it’s a pretty stable market. There’s not too much movement in any of this right now because even though the last one.
This is kind of the buyer statistic, if you will, how many homes are actually being sold and closed on because there have been fewer homes in the market. We have a little less closing’s happening. So we’re gonna see. I wouldn’t expect it because we had the same data here. I would expect it to be about the same next month, maybe a little bit less. Maybe you’re looking at 11, 1200 homes a month closing in the county. So again, it gives you an idea of what’s going on in the market so that way you can make decisions for you and your family the best you can. Again, the wrapping up what this means, the price per square foot is, do you take the square footage of your home, you can multiply that by this number and get about what your home is valued at and you can’t do that to price your home. But you can do that to get a simple evaluation just for your knowledge. If you want to get your home priced, actually, you need to have a real estate professional or an appraiser come to look at your home, take into consideration what’s exactly going on. Do a report on your home and the amenities, the area, what’s going on, the subdivision, the acreage you have, whatever it may be, you need to know what’s going on. This is a countywide number. So this is to just give you a general ballpark of what’s going on.
So I hope that kind of wrapped up some of that for you in kind of ties a bow on it. I appreciate your time and energy watching this. Let me know any questions, comments, concerns you have, and if any way, our team can help, please let us know. We look forward to bringing you guys this. We look forward to seeing you in the other market update videos as well. And again, we love doing this so that way we know where we need to be at and so that way we can help our clients, our loved ones, our family and friends, business partners as much as we can. And this is why we do this. So I appreciate you guys watching and commenting and giving us feedback and we look forward to seeing you on the other updates.