August 2011 Ann Arbor Market Update

Ann Arbor Home Stats

Inventory continues to decrease for the overall Ann Arbor real estate market when comparing the end of July with that of August. Ann Arbor homes for sale dropped by 10%, while the number of homes under contract declined by 6.5%, and we saw a small increase of 2% in sales for the past 12 months. Like the end of last month, all price points lost inventory, with the $500-$600 range seeing the largest drop- 19%. The exception was the $400-500k range which increased, but only by 5%. As the great number of homes that went under contract in early summer close, we continue to see the trend of decreased inventory with increased sales and decreased new inventory. We will most likely see this trend throughout the next month or so, as the homes currently under contract close and the busier summer market comes to an end.

The months supply of homes also remained the same for the overall market and is still considered a buyer’s market at 7.6. All price points have seen decreases in the months supply of homes with the $500-600k range seeing the largest drop of 27%. The exception to this is the $400k-500k price point, which saw an increase of 5%. There is a 28.8 months supply over 1M, which means it would take 28.8 months for all of the current inventory to sell with no new homes coming to the market. There is a balanced market in all price ranges between $200k-$400k, which we haven't seen in a long time. The under $100 market continues to be in a seller’s market and everything over $400k is still in a buyer’s market, but all price ranges have seen a decrease when compared to the previous month.

The Ann Arbor rental market remains relatively unchanged and is strong with a 2.6 months supply, as sellers are choosing to rent their homes and wait for their market to fully recover.

In the real estate market, if there is less than a 5 months 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 the summer real estate market comes to a close, there are still many great homes and deals out there. If you are considering making a move in the Ann Arbor area, contact us today at info@bouma.com or 734-761-3060. View all Ann Arbor Subdivisions, visit Ann Arbor Condo complexes and see the free buyer services The Bouma Group offers here!

Posted Thursday, September 08, 2011 by Martin Bouma
Tags: Ann Arbor Homes, Ann Arbor Home Buyer, ann arbor school district, ann arbor real estate market update, ann arbor real estate trends, Ann Arbor Subdivision Hotline