October 2011 Ann Arbor Condo Market Update

The Ann Arbor Condo Market is Balanced

Ann Arbor Condo Statistics October 2011When comparing the end of October to the end of September, there are few changes for the overall Ann Arbor condo market. There was a slight decline in inventory and has reaches it's lowest point in 2011. Right now there are 238 condos listed for sale, down 2% from last month. The number of condos under contract with a buyer also decreased, as well as sales for the past 12 months. The overall condo market remains in a balanced market with a 5.7 month supply of condos. Although most price points are in a buyer's market, condos listed for $200k or less are in a seller's market and that's where the majority of the sales are.

The $400-500k range had the biggest change and there was an increase of 20% in the months supply of condos when compared to the previous month. There were 4 closings in this price range in September, while in October there were only 2 with no new units listed. This increase puts this price range back into a solid buyer's market. The $300-$400 range is still in a balanced market. The $500k-$1M price point gained 1 new listing and over $1M things have remained unchanged with no sales and no new listings.

In the real estate market, if there is less than a 5 month supply of homes on the market, you are in a seller's market. A 5-7 month supply of homes is a balanced market. Anything over 7 months is a buyer's market. The under $100k market remains in a seller's market, with the $100k-200k and $300k-400k in a balanced market. All other price points are in a buyer's market.

Ann Arbor condo rentals were basically unchanged in inventory, while sales for the past 12 months decreased by 8 units. It continues to be very strong, as sellers are choosing to rent their units, and the month’s supply is at 1.3.

With Ann Arbor condo inventory is at the lowest point of the year, prices are less competitive. That, combined with historically low interest rates which allow condo buyers to get even more for their money, this a great time to purchase a downtown Ann Arbor loft, a Pittsfield Township condo, or a campus rental unit. For more information contact us today at 734-761-3060 or info@bouma.com.

Posted Monday, November 21, 2011 by Martin Bouma
Tags: ann arbor condos for sale, Ann Arbor Condos, Ann Arbor Condominiums, ann arbor condo rentals, Ann Arbor Condos for Rent, Ann Arbor Condo Market Update, Ann Arbor Condo Market Statistics

October 2011 Ann Arbor Homes Update

The Overall Ann Arbor Real Estate Market is Balanced

Ann Arbor Home Stats November 2011

Comparing the end of October to the end of September, the number of Ann Arbor homes listed for sale declined by 7% and the number of homes under contract declined by 4%. All price points saw lower inventory as more homes sold than were listed. The decreasing inventory with increased sales trend of the late summer/early fall has ended and as you can see in the chart above, sales for the past 12 months slightly declined.

The real estate market for the entire Ann Arbor school district is in a balanced market at a 6.3 months supply of homes. Most price ranges had decreases in the months supply of homes, except for the under $100k and the $800k-$1M price ranges, which saw small increases. Over 1M we have a 26.25 months supply of housing available, which means it would take over 26 months for all of the current inventory to sell with no new homes coming to the market. Price ranges under $300k and the $300k-$400k, along with the $700k-$800k ranges are now in seller's markets, as sales remain up and inventory is down. The rest of the price ranges are still in a buyer’s market.

Now is a great time to purchase an Ann Arbor home! Although there is lower inventory, sellers are motivated and there isn't as much buyer competition as in the summer months. And with the historically low interest rates, your purchase power is increased by thousands. So if you're considering making a new home purchase, contact us today at info@bouma.com or 734-761-3060 to find out which Ann Arbor Subdivision is right for you! Check out the great Buyer Services we offer or search the Ann Arbor MLS here.

Posted Thursday, November 17, 2011 by Martin Bouma
Tags: Ann Arbor Homes, Ann Arbor Home Buyer, ann arbor subdivision, ann arbor school district, ann arbor real estate market update, ann arbor real estate trends, Ann Arbor Subdivision Hotline

Ann Arbor Mortgage Rates for November 2011

Mortgage Rates Remain Low!

Ann Arbor mortgage rates have remained at this low level for 8 weeks now.  They moved up slightly, about .25%, 2 weeks ago and just came back down the last few days. We expect to see rates in this range through most of the 4th quarter.  What a great time to make an Ann Arbor condo purchase and take advantage of these low rates!
Right now, we are matching the lows of the year. With these rates, your buying power is worth $10,000 to $50,000 more in your purchase price. FHA is also available with as little as 3.5% down and we have several conforming programs with 10% down.

Mortgage Rates Nov 2011

*Rates are based on a mortgage of $200,000, 80% LTV, no points and a credit score of 740 or higher.

Please keep in mind that interest rates are subject to change without notice. The rates listed above are average rates and are subject to change without notice. To find out more about the current interest rates and which loan program is best for you, contact Charlie Chapell with United Bank & Trust today at 734-214-2728 or cchapell@ubat.com.

Now is a great time to take advantage of the low interest rates combined with low condo prices! Thinking of a Downtown Ann Arbor Condo? View all Ann Arbor condo complexes here and to search homes, visit our Ann Arbor Subdivision Hotline!

Posted Monday, November 07, 2011 by Martin Bouma
Tags: Ann Arbor Condos, downtown ann arbor condos, ann arbor mortgage interest rates, Charlie Chapell, United Bank and Trust

Trends for Downtown Ann Arbor Condos

Downtown Ann Arbor Condos See Increases

Like the rest of the Ann Arbor real estate market, Downtown Ann Arbor condos have seen fluctuating values. We are definitely seeing some interesting trends and are tracking the number of sales, average sale price, and price per square foot for all downtown Ann Arbor condo complexes combined, so you can see what has been happening the past few years.

Downtown Ann Arbor Condos # of Sales

2007-2008 saw high sales, as many new construction condo projects were completed in the Downtown area, such as Ashley Terrace, Liberty Lofts, Loft 322, and the lofts over downtown retail – Main Street Condos and Main and Liberty Condos. By 2009, sales fell to almost the same level as 2006, as new construction either sold out or was halted, combined with an economic shift, which put many would-be condo sellers under water with their mortgages. 2010 saw a large spike in the number of condo sales and jumped a whopping 74%. Ashley Terrace condos were once again for sale by the builder with 12 units sold, and the lower priced Tower Plaza sold 20 units, many of them foreclosures.

Downtown Ann Arbor Condos ASP

A great indicator of what condo buyers are willing to pay for condos. 2008 was the peak in ASP as the new construction condo developments were selling out and we saw 17 sales over 400K a 112% increase over 2007. But then, in 2009 the ASP dropped by a sharp 32%. The lower price condos at Tower Plaza and Riverhouse thrived, while the market saw a 64% drop in condos that sold for over 400K, with only 6 units selling – a major contributor to the large decline in the ASP. 2010 saw only 5 sales over 400K.  The exciting news is that in 2011 YTD there have been 8 sales over 400K, which tells me that buyers are becoming more confident in the downtown market. YTD is showing condo prices returning to the higher levels of 06-08 and is a great sign of downtown Ann Arbor condo buyers spending more.

Downtown Ann Arbor Condo A$/SF

The average price per square foot shows the same trends, with 2009 being the low. The A$/SF is slowly creeping back up and is a good indication that downtown Ann Arbor condo buyers are purchasing more modest condominiums.

The Bouma Group has been selling downtown Ann Arbor condos for over 20 years and thoroughly knows the market. We will be keeping a close eye on the downtown condo market as it continues to recover. Be sure to follow our blog to receive Ann Arbor Condo real estate information as soon as it’s posted. For instant listing and sold information, visit the Ann Arbor Condo Hotline, the premier source for up-to-date condominium information or contact us today at 734-761-3060 or info@bouma.com.

Posted Friday, November 04, 2011 by Martin Bouma
Tags: downtown ann arbor condos, downtown ann arbor condo prices, downtown ann arbor condo trends, condos in downtown ann arbor, ann arbor condo hotline