The Ann Arbor Real Estate Market is showing signs of recovery under $300,000. One of the best indicators to watch is the months supply of housing. Generally speaking, when the months supply of housing gets over 8 months, there is downward pressure on price. Currently in Ann Arbor below $300,000, the months real estate supply ranges from 4.7 – 7 months.
Contrast that with the higher range of the market where once you get above $500,000, the months supply of housing is consistently over 15 months, and goes all the way up to 83 months once you get over $1,000,000.
Other Positive Signs of Ann Arbor Area Real Estate
Another indicator to watch is the Activity Index (AI) – which is the number of homes that are currently for sale which are under contract to close. A number over 20% indicates activity that is generally seen in a seller’s market. Under $300,000, the AI ranges from 25% – 40%. The Northeast part of Ann Arbor (bounded by US23, M-14, Pontiac Trail and Plymouth Rd) shows even better signs of recovery, where 66% of all 2 story homes are under contract – an extremely healthy sign for a recovering market.
As we watch Ann Arbor area real estate trends, you will notice that the numbers for homes under $300,000 are better in August than July, however, once you get over $300,000 the numbers aren’t improving. Hopefully as the market firms up in the lower end, we will begin to see a ripple effect up through the price ranges.
I feel confident that we are at a turning point in the market. For a long time, consumers have felt that the future was going to be worse than today. For the first time in over a year, I sense that consumers are finally beginning to feel that the future will be better than today. Once that thinking starts to take off, consumers will gain the confidence that will allow them to make large purchases, and the market will begin it’s slow recovery.
Contact me, your Ann Arbor area real estate expert when you are ready to learn more about purchasing and selling real estate in Washtenaw County.