The Ann Arbor real estate market is always a dynamic and exciting landscape to navigate. Whether you are a first-time homebuyer, a seasoned investor, or looking to sell your longtime family home, keeping a pulse on the local numbers is key to making informed decisions.
Looking back at 2025, we saw incredible diversity in the types of homes sold and the prices commanded. From cozy starter homes to magnificent luxury estates, Ann Arbor continues to offer something for everyone. Let’s dive into the data from our MLS to see exactly what happened in our community last year.
A Snapshot of Ann Arbor’s 2025 Market
The 2025 numbers tell a compelling story of a robust and active market. In total, 932 homes changed hands throughout the year. This level of activity showcases the continued desirability of our city. Ann Arbor remains a destination for professionals, families, and retirees alike, drawn by our vibrant culture, excellent schools, and strong community spirit.
One of the most telling statistics from 2025 is the speed of the market. The average Days on Market (DOM) across all sales was just 29 days. This indicates that well-priced homes moved quickly, requiring buyers to be ready to act and sellers to be prepared for a fast process.
The Low, Median, Average, and High
To understand the full spectrum of our market, it helps to look at specific benchmarks. We’ve broken down the least expensive, median, average, and most expensive homes sold to give you a clear picture of what buyers were getting at different price points.
The Entry Point: Affordable Living
Sold Price: $170,000
Address: 4179 Dexter-Ann Arbor Rd
The lowest-priced home sold in 2025 was a compact and efficient property on Dexter-Ann Arbor Rd. Selling for $170,000, this home offered 826 square feet of living space. It featured 2 bedrooms and 1 bathroom, making it a great option for a starter home or an investment property. Interestingly, this home spent only 12 days on the market, proving that affordable inventory is in extremely high demand.
The Market Median: Where Most Buyers Land
Sold Price: $575,000
Address: 2765 Gladstone Ave
The median price point is often the best indicator of “middle of the road” for a specific area. In 2025, that benchmark was set by a lovely home on Gladstone Ave. Selling for $575,000, this property offered significantly more space, 1,970 square feet, along with 3 bedrooms and 2.1 baths. Like the entry-level home, this property also sold in just 12 days, reinforcing the competitive nature of our core market segment. Listed by The Bouma Group, Realtors
The Average: A Step Up in Features
Sold Price: $678,400
Address: 1511 Pauline Blvd
The average for 2025 landed at $678,400, represented by a spacious home on Pauline Blvd. This property offered 2,020 square feet, providing that extra room many growing families look for. With 4 bedrooms and 3.1 baths, it catered to buyers needing more dedicated space. Most notably, this home flew off the market in a mere 3 days, highlighting how aggressive buyers are when a quality home hits the market in this price bracket.
The Peak: Luxury Defined
Sold Price: $12,800,000
Address: 4000 Vorhies Rd
At the very top of the market, we saw a truly spectacular estate on Vorhies Rd sell for $12.8 million. This wasn’t just a home; it was a compound. Spanning an incredible 15,364 square feet on 16 private acres, this property is in a league of its own. It featured 4 bedrooms, 7 full baths, and 3 half baths. Sales of this magnitude are rare and demonstrate that the luxury market in Ann Arbor can rival major metropolitan areas when the property is right.
Days on Market: Speed Matters
One of the most critical takeaways for sellers in 2025 was the correlation between time on market and final sale price. The data clearly shows that fresh listings command the highest premiums.
Here is the breakdown of sales based on Days on Market (DOM):
- 0-30 Days: This was the sweet spot. A massive 652 sales occurred within the first month. Sellers in this window saw an average sale-to-list price of 101.25%. This means most homes sold immediately and went for over the asking price.
- 31-60 Days: As homes lingered into the second month, the dynamic shifted. 156 sales happened in this window, but the average sale-to-list price dropped to 95.17%.
- 61-90 Days: By the third month, with 54 sales recorded, the average dropped further to 91.95%.
- 91-120 Days: For the 35 homes that took up to four months to sell, the average return was 87.83%.
- 121+ Days: The remaining 35 sales that sat for over four months averaged 88.41% of their list price.
The lesson here is clear: Pricing your home correctly from day one is the single most effective strategy to maximize your return. The longer a home sits, the less negotiating power a seller typically retains.
The Luxury and New Construction Landscape
Beyond the standard residential resale market, we saw significant movement in the high-end and new construction sectors.
- Luxury Market: There were 127 homes sold for over $1 million in 2025. This robust number indicates a healthy appetite for luxury living in Ann Arbor.
- New Construction: The MLS recorded 20 new construction sales, with 7 of those surpassing the $1 million mark. However, it is important to note that this number is likely conservative. Many builders sell directly to buyers without ever listing their projects on the MLS, so the actual footprint of new construction is larger than these stats suggest.
What This Means for You
If you are thinking of entering the market in 2026, the 2025 data offers a great roadmap.
For Sellers: The market rewards speed and preparation. With the vast majority of sales happening in the first 30 days, and at over asking price, getting your home “show ready” and priced accurately is paramount. Learn how to get a head start now.
For Buyers: You need to be prepared to move quickly, especially if you are looking in the median to average price range ($575k – $680k). Having your financing in order and a trusted local agent by your side can make the difference between winning a bid in 3 days or missing out. Learn what you should start doing now.
Ann Arbor remains a vibrant, high-demand community. We are proud to help our neighbors navigate these trends and find their perfect place in this wonderful city. Whether you are aiming for that efficient starter home or the sprawling estate, we are here to guide you every step of the way! Contact us today at The Bouma Group, Realtors at 734-761-3060 or info@bouma.com.