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. Continue reading