May 2011 Ann Arbor Market Update

Ann Arbor Homes Market Update

Residential housing inventory is up by 5%, when comparing May to April, for the overall Ann Arbor school district. The only price ranges that saw a decrease in inventory was the $300k-400k market, which saw a decrease of 1 unit and the $700k-$800K range, which saw a decrease of 25%. There were 751 homes for sale, at the end of April, with 29% under contract. That number rose to 789 homes for sale, by the end of May, with 31.3% under contract. So Ann Arbor experienced an increase in the number of homes going under contract with a buyer, along with an increase in inventory. In the chart above, you will see that the number of homes sold in the past 12 months has decreased, which is normal for this time of year, coming out of late winter and the slowest time for real estate. The number of homes under contract is rising, which shows there have been increased home sales in the past month. The number of homes sold will begin to rise as they close over the next 30-60 days.

As a whole, the Ann Arbor school district is in a buyer's market with a 9.7 month supply of housing. There has been an increase in the month's supply of homes for most price points, noting that the $300-$400k market has actually seen a decrease of 5%. This is due to inventory remaining virtually the same and it balancing out from the large increase it saw last month when it went from a 6.3 to a 9.9 months supply in just 1 month. The under $100k market is seeing a 4 month's supply of housing, keeping it in a seller's market. Over $1,000,000 we have 30 month's supply of housing. The rental market remains strong, with a 2.3 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. There are still many great homes and deals out there. If you are considering making a move in Ann Arbor or Washtenaw County, contact us today at info@bouma.com or 734-761-3060, search for Ann Arbor homes on our website, and check out all of the great real estate services The Bouma Group offers!

Posted Saturday, June 11, 2011 by Martin Bouma
Tags: Ann Arbor Homes, ann arbor subdivision, ann arbor school district, ann arbor real estate market update, ann arbor real estate trends