Ann Arbor Real Estate Market Update for December 2010

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Inventory in the Ann Arbor school district continues to drop. At the end of September there were 654 homes for sale with 22.8% under contract. Here at the end of December, that number has dropped to 513 homes for sale, which is a 22% decrease in inventory, with 22.6% under contract, which has stayed consistent. This gives us a 6.2 month supply of housing for the Ann Arbor school district, which has decreased by 19% in the last quarter of the year. Now, the $400k - $600k price range is seeing a lower housing supply and is joining the more competitive under $400,000 market, with the months supply of housing ranging from 5.2 - 6.5 which is still considered a balanced market. The under $100k market is seeing a 3.8 months supply of housing, putting it into a sellers market for the first time in a while. Although decreasing in the over $600,000 market, the months supply of housing is consistently over 9 months. Over $1,000,000 we have 16.4 months supply of housing.

In spite of the lower inventory under $400,000, houses still have to be in excellent condition and priced competitively in order to sell. Even with limited choices, buyers are not willing to make compromises. With so many home owners being upside down on their mortgage, I see the market inventory remaining tight for the foreseeable future.

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 you'll notice from the stats below, prices appear to have stabilized under 600k, however, there is still downward pressure on prices once you get above 600k.

ANN ARBOR REAL ESTATE MARKET UPDATE, DECEMBER 2010

<$100 k 100-200k 200-300k 300-400k 400-500k 500-600k
Listings 24 169 124 63 47 20
Under Contract 10 48 29 15 5 2
Sales Past 12 Months 75 317 288 136 86 43
Absorption Rate 6.3 26.4 24 11.3 7.2 3.6
Months Supply 3.8 6.4 5.2 5.6 6.5 5.6
600-700k 700-800k 800-1000k >1000k All Rentals
Listings 21 18 20 18 513 67
Under Contract 6 2 2 1 116 17
Sales Past 12 Months 27 14 20 13 999 247
Absorption Rate 2.3 1.2 1.7 1.1 83.25 20.6
Months Supply 9.1 15 11.8 16.4 6.2 3.3

ZIP Codes: 48103, 48104, 48105, 48108

Approximate Location Boundaries: Ann Arbor School District

Location Characteristics: Ann Arbor has many distinct neighborhoods that offer a variety of home buying opportunities. The area is a cultural Mecca with many performance centers and theaters, live music, dance groups, libraries, museums, parks, & farmer's markets. It is considered the education capital of the Midwest because it is home to the University of Michigan, one of the country's top universities. The Ann Arbor area offers one of the most varied menus of restaurants in the state with Main Street as one of Michigan's best places to eat, people watch and shop. In July, Ann Arbor is host to the Ann Arbor Art Fairs, which is among the nation's top street festivals and takes up nearly all of the downtown area. Artists and shoppers travel from all over the country to attend this yearly event. Ann Arbor is a great place to live!

Martin Bouma - your Ann Arbor expert - can help you find the perfect piece of Ann Arbor real estate. Whether you're buying or selling a home, the Bouma Group can answer any questions you have about real estate in Ann Arbor. Thinking of settling down in Washtenaw County, Dexter, Saline, or a specific Ann Arbor neighborhood? Contact the Bouma Group today at 734-761-3060 or info@bouma.com. And don't forget to check out our Condo Hotline - we know the Ann Arbor condominium market better than anyone!

he 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 you'll notice from the stats below, prices appear to have stabilized under 400K, however, there is still downward pressure on prices once you get above 400K.

Price Range: Less than 100k
Listings: 24
Under Contract: 10
Sales Past 12 Months: 75
Absorption Rate: 6.3
Months Supply: 3.8

Price Range: 100-200k
Listings: 169
Under Contract: 48
Sales Past 12 Months: 317
Absorption Rate: 26.4
Months Supply: 6.4

Price Range: 200-300k
Listings: 124
Under Contract: 29
Sales Past 12 Months: 288
Absorption Rate: 24
Months Supply: 5.2

Price Range: 300-400k
Listings: 63
Under Contract: 15
Sales Past 12 Months: 136
Absorption Rate: 11.3
Months Supply: 5.6

Price Range: 400-500k
Listings: 47
Under Contract: 5
Sales Past 12 Months: 86
Absorption Rate: 7.2
Months Supply: 6.5

Price Range: 500-600k
Listings: 20
Under Contract: 2
Sales Past 12 Months: 43
Absorption Rate: 3.6
Months Supply: 5.6

Price Range: 600-700k
Listings: 21
Under Contract: 6
Sales Past 12 Months: 27
Absorption Rate: 2.3
Months Supply: 9.1

Price Range: 700-800k
Listings: 18
Under Contract: 2
Sales Past 12 Months: 14
Absorption Rate: 1.2
Months Supply: 15

Price Range: 800-1,000k
Listings: 20
Under Contract: 2
Sales Past 12 Months: 20
Absorption Rate: 1.7
Months Supply: 11.8

Price Range: 1,000k+
Listings: 18
Under Contract: 1
Sales Past 12 Months: 13
Absorption Rate: 1.1
Months Supply: 16.4

Price Range: Rentals
Listings: 67
Under Contract: 17
Sales Past 12 Months: 247
Absorption Rate: 20.6
Months Supply: 3.3

Price Range: All Residential Ann Arbor Price Points (no rentals)
Listings: 513
Under Contract: 116
Sales Past 12 Months: 999
Absorption Rate: 83.25
Months Supply: 6.2



Posted Tuesday, January 04, 2011 by Martin Bouma
Tags: ann arbor real estate, market update