February 2011 Ann Arbor Market Update

Inventory in the overall Ann Arbor school district is rising and is up by 16% from January. Price points up to $600k have all seen increases in inventory, while everything over $600k has seen a decrease in inventory (except the $700-800k range, which is up by only 1 unit). We are in a balanced market based on inventory in many price points, however, the overall market continues to behave as a buyer's market.

There were 521 homes for sale with 23.2% under contract at the end of January. That number has increased to 605 homes for sale at the end of February, which is a 16% increase in inventory, with 21% under contract, which is an decrease of 9%. But, the number of homes going under contract is not increasing along with the increase in inventory. There is currently a 5.6 month supply of housing for the Ann Arbor school district, with the $100k-$500k market having a month’s supply of housing ranging from 5.6 - 6 which is considered a balanced market. The under $100k market is seeing a 3.7 month’s supply of housing, keeping it in a seller’s market. Over $1,000,000 we have 21.8 month’s supply of housing.

Although inventory is beginning to increase, it is still down for the first 2 months of 2011 compared to 2010, which is great for sellers. But, homes still need to be in excellent condition and priced competitively in order to sell to keep buyers motivated.

In the real estate market, if there is less than a 5 month’s 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. As you'll notice from the stats below, prices appear to have stabilized under $500k, however, there is still downward pressure on prices once you get above 400K.

What is happening with prices in your Ann Arbor Neighborhood? To find out more about what Ann Arbor Home prices are doing, contact us today at 734-761-3060 or info@bouma.com.

Posted Monday, March 14, 2011 by Martin Bouma
Tags: market update, market trends, ann arbor home prices