2010 Property Values for Washtenaw County

2011 holds a lot more promise for Washtenaw County property values than one year ago. The end of continuing price declines is how I would define recovery today. Although we are not seeing major increases in Ann Arbor area property values, we are seeing slight property value increases in most Washtenaw County areas for the first time in over 5 years. Historically low interest rates, combined with super low home prices, housing is more affordable today than it has been for decades.  I believe that 2011 will be the peak year for buying Washtenaw County real estate.

 

Looking at data from the end of 2010 MLS reports, there are promising statistics to report:

  • the average sales price inched up by 1%
  • closed volume for residential sales increased by 4.0%
  • closed volume for condominium sales increased by 25.6%
  • number of residential sales increased by 2.98%
  • number of condominium sales increased by 26.36%
  • new listings decreased by -5.6%

 

As exciting as some of these statistics are, it is important to understand that real estate is local.  Here is a chart that shows what is occurring in each school district in Washtenaw County.

Washtenaw County Home Values for 2010

As can be seen, the Willow Run and Ypsilanti school districts have gained the largest increase in property value (when looking at $/SF). But, they’ve also had the largest decrease in values since 2005, a whopping 50%.  In a real estate market where there are a large number of foreclosures, this is typical.  When a specific market hits the bottom very quickly, it is the first to rebound as investors come in to purchase the unbelievable deals. Milan has followed a similar path and has recovered by 3.5%.

 

Ann Arbor had the next largest price increases. The Ann Arbor real estate market has remained stable, in part because it is not driven by bank sales. As a result of a stable job market, demand for real estate has stayed strong, and housing inventory – due to the lack of bank sales – has remained very tight. Many home owners that want to sell, simply cannot, as they owe more on their mortgage than they can sell their home for. And since they don’t qualify for a short sale, because of a solid income, assets, etc, they simply stay put.  That trend will continue for a number of years, which will help to keep the inventory low. Usually decreased inventory puts upward pressure on home prices, however, the constant flow of bank sales and short sales to the market will keep price increases in check.

 

There are 2 real estate markets that are still seeing decreases in property values: Chelsea (-1%) and Manchester, which saw a large drop in value (6.8%). With gas prices being a major concern, and the increased affordability of homes closer into Ann Arbor, rural properties have been at a disadvantage due to decreased demand. The less demand, the greater chance that homes will fall into foreclosure, which continue the downward spiral in prices.

 

Tune into our blog regularly to keep track of  the Washtenaw County real estate market. We are your source Ann Arbor and Washtenaw County real estate news.  Also visit our websites www.bouma.com, www.condohotline.com/annarbor, or www.subdivisionhotline.com for up to date information on the residential and condo real estate market!



Posted Thursday, January 27, 2011 by Martin Bouma
Tags: ann arbor real estate, Washtenaw County Real Estate, Washtenaw County Property Values, Condo Hotline, Subdivision Hotline