Washtenaw County Real Estate Report for 2017
2017 was another very competitive year for the real estate market in Washtenaw County. Continued strong employment growth which creates demand, along with historically low interest rates and a shrinking inventory has fueled an increase in average sales price for the 8th year in a row. Average sales prices in Washtenaw County bottomed out in 2009 at $182,287 and since then have increased in value by 66% to $303,087. Meanwhile, the average sales price for a home in Ann Arbor increased to $422,667, a 7.8 % increase over last year.
In spite of the low inventory, we have begun to see some mixed signals. While active listings remain in short supply, we are seeing a decrease in the pace of sales, a reluctance by buyers to enter into multiple offer situations, a lack of over list price offers, buyer’s remorse after an offer is bottom-lined, and buyers negotiating very hard after the building inspection. Because buyers are paying top dollar, they become very intolerant of any problems that may arise during the building inspection. The market also remains susceptible to wider changes in the economic landscape, with slowly increasing interest rates, new construction coming to the market, key tax plan changes, and the anxiety that comes from 8 years of strong price increases and buying at the top of the market. Continue reading
It’s a Buyer’s Market for Saline Real Estate
With an 11.6 months supply of homes available, Saline Real Estate as a whole, is in a buyer’s market. However, we are seeing a balanced market in the $100k-$200k price range and with Saline rentals. To find out more about Saline home values, or to discuss your particular property, contact the specialists at The Bouma Group at firstname.lastname@example.org or 734-761-3060. For the latest real estate news, Saline home search, or a Free Buying Guide, check out our state of the art Washtenaw County home website!
More Saline Homes Come to the Market
Inventory is rising for the Saline Real Estate market and as a whole, and it is in a buyer’s market with an 11 months supply of homes. The Bouma Group tracks all trends, including: price points, neighborhoods, home type, and more. So contact us, your Saline Realtors, to help you find your dream home and/or sell your current residence. We can be reached at 734-761-3060 or email@example.com. We know Washtenaw County homes and as a full service real estate team, we are here for you!
A Great Time to Purchase Saline Real Estate
It continues to be a buyer’s market for Saline real estate with a current 10 months supply of homes available overall. As is the case with most Washtenaw County school districts, the $200k and under price ranges are seeing a seller’s and balanced market with a low inventory of Saline homes. To find out more about home values, contact the Saline Realtors at The Bouma Group today at 734-761-3060 or firstname.lastname@example.org. We track every aspect of real estate, including price points, neighborhoods, condos, specific schools and more. To keep up to date with the latest news, subscribe to our Washtenaw County real estate blog here!
Washtenaw County Real Estate Values Steady
Real Estate values for Washtenaw County school districts have leveled out, in general, as the 2012 market begins. All areas saw a sharp decline in the average price per square foot beginning in 2005, and most saw the bottom in 2009. Since the lows of ’09, the price per square foot has started to slightly rise in some areas and slightly fall in others.
Factors Influencing the Washtenaw County Real Estate Market
One of the biggest changes has been the significant decrease in inventory. In Ann Arbor we are entering 2012 with only 434 homes for sale, which is a 14% drop in inventory from 2011. The Ann Arbor condo market has seen a 25% drop in inventory as we head into 2012 with only 203 listings. The decrease in inventory is even more stunning when compared to the peak years. Since 2007 the residential inventory in Ann Arbor has dropped 49.55% and the condo inventory has dropped 69.8%.
Some of the decreases from 2011–2012 in other schools districts were as follows:
- Saline entered 2012 with 199 listings – a 3.86% drop in inventory
- Dexter entered 2012 with 150 listings – a 23.8% drop in inventory.
- Lincoln entered 2012 with 164 listings – essentially the same as last year.
- Ypsilanti entered 2012 with 66 listings – essentially the same as last year. In 2007 there were 289 listings, so this market has changed significantly.
Should inventory remain low, the hope is that price increases will follow. The main reason for the decreased inventory is the fact that many seller’s are underwater with their mortgage and can’t afford to sell, so they stay put, or they rent their home.
Prices peaked in 2005-2006 when the average price/square foot in Ann Arbor was $174/SF for the residential market and $145/SF for the condo market. Several of the sub-markets have seen small increases for 2 years in a row, and with decreased inventory, job growth, and low interest rates, the hope is that this will continue. I don’t see prices increasing too rapidly though. Every time prices increase a little, there will be a surge of sellers who will now have enough equity to sell their home, which will keep a lid on huge price increases.
Where is the Ann Arbor Real Estate Market Headed?
Optimism has returned to the Ann Arbor real estate market. While values are still anywhere from 10-65% below the historic highs, they are no longer in a free fall. Ann Arbor homes are an incredible value right now. Low interest rates + the lowest prices in years = opportunity. I don’t believe that this opportunity will last much longer due to a lack of inventory. Most of the leading indicators show a lack of supply and strong demand. Job growth, lack of new construction, and low interest rates have nudged buyers back into the market. Low inventory, decreasing foreclosures, and slowly rising prices are beginning to nudge sellers back into the market. Both of these trends bode well for a healthy real estate market in Ann Arbor.
Downtown Ann Arbor Condominiums offer a variety of urban living experiences and are a popular choice for many types of buyers. Like most Washtenaw County Real Estate, Downtown Ann Arbor condo values have decreased, but as with Ann Arbor homes, they appear to be on the rise once again. 2009 was a low for the total number of units sold, average sales price, and price per square foot. But, in 2010 we saw an increase of 71% in number of units sold, an increase of 11% in average sales price, and an increase of 5% in average price per square foot. So far in 2011, 15 condos have sold with an average sales price of $294,469 and average price per square foot of $229.35. The highest selling condo price was $540,000, $261.88/square foot, for an Ashley Mews brownstone with 2466 total square feet, 3 bedrooms and 2.1 baths. The lowest priced unit was a studio-style Riverhouse condo that closed for $67,000, $146.29/square foot, and had 458 square feet with 1 full bath. Continue reading
Ann Arbor Homes of the Future
The economic climate has certainly changed over the past few years, and Ann Arbor real estate was not exempt. Home buyers are more aware of their financial situation than ever before and a new state of fiscal responsibility has replaced the ‘bigger is better’ motto. Home buyer needs are outweighing wants and this may give way to a new type of home building in the future. According to a new study by the National Association of Home Builders, ‘The lousy economy is the force behind the changing characteristics, features and sizes of homes to come, as well as the reason for the record low numbers of homes being built today’. The report predicts the following changes in homes by 2015:
- Living Rooms will disappear. The Great Room, which tends to be open to the kitchen, has become the gathering place. The formal Living Room may be replaced by a study or library. Continue reading