Inventory in the Ann Arbor school district continues to drop. At the end of September there were 654 homes for sale with 22.8% under contract. Here at the end of December, that number has dropped to 513 homes for sale, which is a 22% decrease in inventory, with 22.6% under contract, which has stayed consistent. This gives us a 6.2 month supply of housing for the Ann Arbor school district, which has decreased by 19% in the last quarter of the year. Now, the $400k – $600k price range is seeing a lower housing supply and is joining the more competitive under $400,000 market, with the months supply of housing ranging from 5.2 – 6.5 which is still considered a balanced market. The under $100k market is seeing a 3.8 months supply of housing, putting it into a sellers market for the first time in a while. Although decreasing in the over $600,000 market, the months supply of housing is consistently over 9 months. Over $1,000,000 we have 16.4 months supply of housing.
In spite of the lower inventory under $400,000, houses still have to be in excellent condition and priced competitively in order to sell. Even with limited choices, buyers are not willing to make compromises. With so many home owners being upside down on their mortgage, I see the market inventory remaining tight for the foreseeable future.
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