Ann Arbor Condo Market Update – September 2011

Ann Arbor Condo Inventory at Lowest Point of the Year

September was the beginning of the fall real estate market and we are seeing things level out for Ann Arbor condos. Inventory dropped even more and is now at its lowest point for the entire year. There are currently 243 units listed for sale, which is down 11% when compared to the end of August. We saw a high of 341 condos listed for sale at the end of April, which is a reduction of 29% when compared to the end of September. The number of condos that are under contract with a buyer decreased only slightly and sales for the past 12 months increased slightly. We continue to be in a balanced market with a 5.6 month supply of condos available. The overall Ann Arbor condo market has stabilized and we aren’t seeing any real big changes.

The most significant difference is in the $400-500k range, where there were 4 closings in September with only 1 new condo being listed. This dramatically affected the months supply of homes which dropped 40% to 7.1, putting this price range almost into a balanced market. The $500k-$1M price point had big changes in August, but in September has seen no change at all. The $1M mark lost 1 listing due to it expiring and not being relisted, otherwise things have remained unchanged with no sales and no new condos coming to the market.

In the real estate market, if there is less than a 5 months supply of homes on the market, you are in a seller’s market. A 5-7 month supply of homes is a balanced market. Anything over 7 months is a buyer’s market. The under $100k market is still in a seller’s market, with the $100k-200k and $300k-400k in a balanced market, and the remaining price ranges in a buyer’s market.

The Ann Arbor rental market also saw another large decrease in inventory, 21%, and the number of rentals under contract dropped by 22%. It continues to be very strong, as sellers are choosing to rent their units, and the month’s supply is at a very low 1.5.

Although the fall market is here, it is a great time to get your Ann Arbor condo listed for sale! Inventory is at the lowest point of the year and mortgage interest rates are at historic lows allowing condo buyers to get even more for their money. To learn more about condo values in Ann Arbor or about the excellent opportunities available to purchase a condo for yourself or as an income property, contact us today at 734-761-3060 or info@bouma.com. We’d love to talk with you about your Ann Arbor condominium! And for instant listing and sold data, be sure to visit our Ann Arbor Condo Hotline – the premier source for Washtenaw County condo information!