In the children’s story, Chicken Licken was hit on the head with an acorn one day when he was eating his lunch. He assumed that the sky was falling and persuaded his friends to join him in going off to report the impending disaster to the king. He made the unfortunate mistake of crying “The sky is falling” to the wily Foxy Loxy who diverted the frightened animals into his den and had them for lunch.
There are people right now in Ann Arbor and all across America who are swept up in the Chicken Liken mode. Tantalized by the home buyer’s tax credit that is set to expire soon, they are holding back from taking action. A look at the economy has them convinced that the sky is falling, so they are gripped with fear that prevents them from committing to buy.
Now if Chicken Licken had felt first signs of an earthquake, he would have been a hero. Instead, without looking at the evidence clearly, he leapt to a false conclusion, caused a panic, and never made it to supper.
Buying a home is big commitment that will dominate your finances for years to come, so being careful is important, but if you are paralyzed from taking action, there may be something else going on that will prevent you from enjoying the benefits of homeownership now. If you are holding back from buying, are you being realistic or suffering from Chicken Licken syndrome? It’s important to discern the difference, as Time’s a’ tickin’, Chicken Licken!
As we head in 2010, the Ann Arbor Condo market looks like it may finally turn around. There are several trends that are supporting this.
Ann Arbor Condo Inventory
Over the past 2 years inventory has decreased from a high of 990 condos for sale in June, 2007 to 347 as of Dec 20, 2009. There has been a 55% drop in inventory when comparing December, 2007 to December 2009. Of course, the less inventory there is, the more competition sellers have for their condos. In this same time period demand has dropped 25%. Even though demand is dropping, it’s not dropping as fast as the inventory which tells me that the market is strengthening. This can also be seen in the months supply of condos. More than 8 months supply of inventory indicates a buyers market. Less than 5 months indicates a seller’s market. Currently there is a 9.2 month supply of condos for sale in Ann Arbor. This is down signifincantly down from an 18 month supply just 2 years ago.
Are you thinking of taking advantage of purchasing Ann Arbor Real Estate in the near future? If you would like more information, give us a call at 734-761-30630, we’d love to help you with your Washtenaw County home search! Have you purchased a home or condo recently? Leave us a comment and tell us why you thought it was the best time to buy!