Now that we are in the middle of the summer, which is typically the height of the selling season, what is going on in the Ann Arbor Real Estate market? Compared to my post on May 11th, we are seeing the Activity Index continue to increase in some price points, as inventory is slightly shrinking and the number of homes under contract is increasing. According to the Activity Index, homes listed for sale under $400k are in a sellers market with homes over $400k remaining in a buyer’s market.
Remember that you can’t judge an entire market, different neighborhoods bear different statistics. To find out more about your specific Ann Arbor Neighborhood, give me a call at 734-761-3060, I’d be happy to do a market analysis for you!
How the Appraisal Affects Your Ann Arbor Home Sale
The good news is the Ann Arbor Real Estate market is starting to show signs of recovery. Residential inventory is down 22% from 2008 and condominium inventory is down 29% from 2008. Interest rates are at historical low rates, and prices seem to have stopped the downward slide that we’ve experienced for the past several years. We are actually seeing multiple and over list price offers on Washtenaw County homes in certain niche markets.
Then May 1st came around – the date that the Home Valuation Code of Conduct was instituted. This Code of Conduct applies to all mortgages being purchased by Fannie Mae and Freddie Mac and was intended to protect appraisers from pressure by lenders to hit predetermined values.
Ann Arbor Realtor, Martin Bouma, shares 8 reasons why he thinks now may be the best time ever to purchase an Ann Arbor Home.
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!
As we head into May, I’m beginning to notice a very positive trend in the Ann Arbor Real Estate market – namely, the Activity Index is increasing. This is a very important trend to watch, as it’s telling me what’s occurring in the market “right now”. What is the Activity Index you may ask? Usually, you’ll hear Realtors and Economists talk about the absorption rate, average sales price, and level of inventory when discussing the market. The Activity Index is the canary in the coal mine. It’s a good indicator of what’s coming down the road.
To determine the Activity Index, you simply divide the number of Ann Arbor homes under contract, by the total number of active listings (including the homes under contract). Since most of the homes went under contract within the last 30 days, the Activity Index let’s me know how active the market is. An Activity Index of less than 15% indicates a buyer’s market, between 15-20% indicates a balanced market, and greater than 20% indicates a seller’s market.
I’ve been digesting what Dan Meisler wrote in the Ann Arbor Business section on the mlive.com website on March 17th in his piece “Developer Allen says Ann Arbor economic boom coming soon“. The more I chew on what Dan wrote the more I see where he is coming from. I have to say I tend to agree with much of what is stated from both the author and Peter Allen (local Ann Arbor commercial developer and adjunct professor). If you haven’t read Dan’s post you should. In his article, Dan and Peter both identify several key factors why Ann Arbor may be standing at the threshold of a major financial “awakening”.
Are Brighter Days Ahead for Our Ann Arbor Real Estate Market?
I have to admit, I’m crazy about all the amazing technology available to Washtenaw County home buyers and Ann Arbor real estate agents alike. It seems like yesterday we were carrying around our “brick” cell phones. Today, smartphones like the iPhone and the Blackberry are all the rage!
One of the interesting phenomenons in today’s Ann Arbor real estate market is the variation in sales prices. In the same neighborhoods, you will see one home sell way above the average, while most of the homes are selling for the average price or below. I’ve observed this several times, and really started to analyze what was happening, and in the process I learned a lot about human nature.
It would be real easy to write a post about “It’s Time to Begin Spring Cleaning”, but do we really need one more blog post about cleaning your Ann Arbor home? No, I didn’t think so either.
As we look back on the first 2 months of 2009, the Washtenaw County real estate market saw a trend of increased homes sales at much lower prices. When comparing the first 2 months of 2009 to 2008, Ann Arbor area home sales have gone up 11.57 percent, while the average sales price has dropped 22.2%, and the average price/SF has decreased 20.1%. These figures reflect the average of the 9 school districts in Washtenaw County. The more important information is – how is my area doing?
In the current Ann Arbor real estate market it is so important that your home for sale is priced ahead of the market. This is a very difficult concept for many Washtenaw County home sellers to understand. I’ve always prided myself in providing sellers with data and market stats that would make an economics professor proud and I’ve always done my homework when it comes to preparing the market comparables – both active and solds. What I started to notice was in spite of all my market stats and perfect comparables, many sellers were having a difficult time comprehending how supply and demand can greatly affect the price they will get for their home.
To help them understand supply and demand I share the following story with them:
Three attorneys are getting ready to take their Bar exam. Anyone who has had a friend take the Bar exam, knows how important this exam is. Students will often study many months to prepare for this exam, so you don’t want to miss the opportunity to pass the test. As the 3 law students are ready to enter the exam room, they all realize that they forgot to bring a pen. In total panic, they start asking around if anyone has an extra pen. One of the ushers has an extra pen, so he offers it to the first law student for $1. Immediately the second law student offers $5 for the pen. In desperation, the 3rd law student offers $25 for the pen, and he walks into the exam room, and the other 2 law students are out of luck. Read the rest of this entry
The Bouma Group | 564 South Main Street, Suite 100 Ann Arbor MI 48104 | Office: (734) 761-3060 Fax: (734) 761-1824