2017 was another very competitive year for the real estate market in Washtenaw County. Continued strong employment growth which creates demand, along with historically low interest rates and a shrinking inventory has fueled an increase in average sales price for the 8th year in a row. Average sales prices in Washtenaw County bottomed out in 2009 at $182,287 and since then have increased in value by 66% to $303,087. Meanwhile, the average sales price for a home in Ann Arbor increased to $422,667, a 7.8 % increase over last year.
In spite of the low inventory, we have begun to see some mixed signals. While active listings remain in short supply, we are seeing a decrease in the pace of sales, a reluctance by buyers to enter into multiple offer situations, a lack of over list price offers, buyer’s remorse after an offer is bottom-lined, and buyers negotiating very hard after the building inspection. Because buyers are paying top dollar, they become very intolerant of any problems that may arise during the building inspection. The market also remains susceptible to wider changes in the economic landscape, with slowly increasing interest rates, new construction coming to the market, key tax plan changes, and the anxiety that comes from 8 years of strong price increases and buying at the top of the market.
The good news is that homes that are in tip top shape and priced correctly still sell quickly, especially under $500,000. However, for a home to get top dollar, it generally has to sell in the first 1-2 weeks of the listing period as that is when fear of loss is the greatest. Once we get past the first couple of weeks, the chances for a full price offer diminishes greatly. For this reason it is very important that your home is staged properly and priced correctly.
Historically, 50% of the listing inventory gets listed in the 4 month period of March – June. To beat that bubble of inventory, it helps to put your home on the market sooner than later.
If you are considering selling your home in 2018, now is the time to do so. In spite of the time of year, the market is very active at this moment.
Here at the Bouma Group, we continue to remain optimistic for 2018. Our powerful real estate team provides an unparalleled transaction experience, which combined with our cutting edge marketing and national networks has kept us in the forefront of real estate, both on a national level as well as in Ann Arbor and Washtenaw County. For the 18th year in a row, we continue to be Ann Arbor’s #1 home seller, having helped 288 families move in 2018.
Yes, we sell more real estate than anyone else, but we sell each home one by one for sellers and buyers just like you. We owe our success to the continued referrals from our past clients and friends. If you are thinking of buying or selling this year, feel free to give my team or myself a call. My 32 years of experience and expertise allows you to benefit from my in depth market knowledge. We will gladly sit down with you to discuss your real estate needs so you can make a decision that works for you. We are here to take care of you.
As always, we sincerely appreciate your business and referrals. We want to be your real estate source in Ann Arbor and Washtenaw County. Don’t forget that our moving truck is always available on a first come basis. If you’re ever downtown, stop in and say hello. We look forward to seeing you in 2018!