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!
Until next time-
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.