Downtown Ann Arbor Condo Values on the Rise!
Downtown Ann Arbor condos have seen values rise and fall, like the rest of the Ann Arbor real estate community. We are definitely seeing some interesting trends and are following the number of sales, average sale price, and price per square foot for all downtown Ann Arbor condo complexes combined.
The number of sales were high in 2007-2008, as many new construction condo projects were completed in the Downtown area, such as: Ashley Terrace, Liberty Lofts, Loft 322, and the lofts over downtown retail – Main Street Condos and Main and Liberty Condos. Sales dropped in 2009 down to almost the same level as 2006 as new construction either sold out or was halted, in combination with a shift in the market, which put many would-be condo sellers under water with their mortgages. 2010 saw a large spike in the number of condo sales and jumped a whopping 74%. Ashley Terrace condos were once again for sale by the builder with 12 units sold, and lower priced Tower Plaza sold 20 units, many of them foreclosures.
The average sales price is a great indicator of what buyers are willing to pay for condos. 2008 was the peak in ASP as the new construction condos developments were selling out. There were 17 sales over 400K in 2008 – a 112% increase over 2007. In 2009 the ASP dropped by a sharp 32%. With only 6 sales over 400K, the market saw a 64% drop in condos that sold for over 400K – a major contributor to the large drop in the average sales price. Lower priced condos at Tower Plaza and Riverhouse thrived. 2010 saw 5 sales over 400K. The exciting news is that YTD in 2011 there have been 8 sales over 400K, which tells me that buyers are becoming more confident in the downtown market. YTD is showing condo prices returning to the higher levels of 06-08 and is a great sign of downtown Ann Arbor condo buyers spending more.
The average price per square foot shows the same trends, with 2009 being the low. The A$/SF is slowly creeping back up and is a good indication that downtown Ann Arbor condo buyers are purchasing more modest condominiums.
Here at The Bouma Group, we offer condo buying, selling and rental services. We will be keeping a close eye on the downtown condo market as it continues to recover. Be sure to subscribe to our blog to receive Ann Arbor real estate information as soon as it’s posted. For instant listing and sold information, visit the Ann Arbor Condo Hotline, the premier source for up-to-date condominium information or contact us today at 734-761-3060 or info@bouma.com.