July 2011 Ann Arbor Market Update

Ann Arbor Market Statistics July 2011

When comparing the end of July to the end of June, there has been a huge decrease in homes for sale for the overall Ann Arbor school district real estate market. Sales for the past 12 months increased from 952 to 997 homes sold, an increase of 5%, while the number of homes listed for sale dropped by 10%, and the number of homes under contract decreased by a large 27%. Inventory decreased in all price points, except for the $700-800k range which remained the same. We're seeing this big change due to the large number of homes that went under contract in the late spring/early summer that have now closed in July, combined with limited new inventory on the market. This trend will most likely continue throughout the next month or so, as the homes under contract close.

The months supply of homes has decreased by 13% for the entire Ann Arbor real estate market, when compared to last month, and is still considered a buyer's market at 8.4. Most price points under $700k have seen large decreases in the months supply of homes with the $600-700k seeing the largest drop of 38%. The $400k-500k saw a slight increase of 4% in the months supply and over $800k, the supply has also increased in all price points. There is a 31.3 months supply for homes over $1M, which means it would take 31.3 months for all of the current inventory to sell. With the exception of the under $100k market, all price points continue to be in a buyer's market, but are now closer to a balanced market with the majority in the 7's.

The rental market actually saw an increase in inventory, with the number of rentals under contract decreasing by 36%.The rental market is still strong, with a 2.7 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. If you are considering making a move in Ann Arbor or Washtenaw County, view the unparalleled Buyer Services we offer and check out Ann Arbor Subdivisions! Contact us today at info@bouma.com or 734-761-3060.

Posted Monday, August 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