Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number to better depict the results. Continue reading →
Inventory for Ann Arbor homes has reached a new Spring low, and is down 4% from this time last year, based on data from the Ann Arbor Area Board of Realtors. This is beginning to affect the number of home sales with 6% less homes closing this April compared with last April. The lack of supply is creating a larger demand and as a result, average sale prices are rising and days on the market are decreasing. The average DOM is 21 compared with 35 and the ASP is up 4.5% at $414,281 vs. $396,224 last April.
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.
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 part two of “Now More than Ever – Buying a Home is All About Neighborhood Location!” we continue our discussion on forces that determine what Washtenaw County neighborhoods will experience a rebound in property values.
The surrounding retail space is the third determining factor that will influence what Washtenaw County neighborhood locations will experience a home value rebound first. If the retail area near the neighborhood has experienced closing of big stores or businesses going out of business (ie Circuit City), commercial property owners will have a difficult time finding new tenants. It’s these neighborhoods near these depressed areas that will be challenged to experience a rebound. It is suggested that the neighborhood you choose have a strong base of retail development with minimal retail turnover. Stable retail centers are a reflection of the classification of an “economic force” on real estate values.
The last factor that plays an integral part in a potential rebound of home values in a neighborhood is that of nearby job opportunities. Granted, our current economic environment is making a rebound of home values even more challenging in light of the decrease in job opportunity in greater Washtenaw County. There are pockets of bright spots for new jobs but overall, the current picture is not encouraging. Job recovery will be an important driver of home values in our Washtenaw County neighborhoods. Again, this influence is classified as an example of an “economic force” on real estate values in our neighborhoods.
The two last forces or factors that affect neighborhood home values are: 1) governmental forces (zoning laws, building codes and rent controls) and 2) physical/environmental forces (natural resources, climate, and topography). While these have and will continue to impact home values, lately economic and societal factors have dominated how and when our home values will begin to turn around.
Ann Arbor Speaks
What other factors would you add when buying a home and selecting a neighborhood that direct you to the best neighborhoods? Is it neighborhood amenities like play grounds, nearby recreational opportunities, or is it being near your place of worship, service providers like a grocery store, or medical facility? Ann Arbor, speak up.
The condition of the real estate market keeps this question at the forefront of most Washtenaw County homeowners minds. You can spend hours on the web trying to keep up with the latest home price and sales information and then try to piece it all together to make sense. Or, you can check out this great tool called Market Snapshot.
What is Market Snapshot?
A free graphical report that provides up-to-the minute MLS information on the area or neighborhood of your choice. Market Snapshot provides the real estate information you need all in one place and is automatically emailed to you at the frequency you request. In a single report you will find:
Market Info – including active and sold data, plus view homes in detail
Community Info – characteristics, restaurants, shopping, arts & entertainment, plus much more
School Info – schools in the area with detailed views
Just click here to visit the enrollment page. Remember, there is no obligation to buy or sell a home by signing up. Once you receive your report, contact the Bouma Group with any questions you may have with interpreting the data. If you are thinking of selling your home and would like more information on your home’s value, give Martin a call at 734-761-3060.