The Ann Arbor housing market continues to thrive, with the first quarter of 2025 providing exciting trends and insights for buyers, sellers, and investors alike. Whether you’re looking to buy your first home, sell your current one, or simply stay informed about our dynamic local market, we’ve got all the key highlights and data you need right here.
A Busy Start to 2025
Residential home sales in Ann Arbor kicked off the year with steady momentum. Compared to the first quarter of 2024, new listings increased by an impressive 17.9%, while closed sales remained steady at 152 properties. This surge in listings is great news for buyers seeking more options in what has historically been a competitive market.
Here’s a quick snapshot of Ann Arbor’s residential housing data for Q1 2025:
- New Listings: 270 (123 in March alone)
- Pended Sales: 150
- Closed Sales: 152
- Average Days on Market: 45
- Average Sales Price: $659,548 (up 6.6%)
- Median Sales Price: $576,000 (up 12.4%)
- Percent of List Price Received: 100.4%
- Median Price per Square Foot: $313
With home prices continuing to rise, sellers are experiencing strong returns on their investments, while buyers are clearly staying competitive and eager to secure their dream homes.
What Does This Mean for Ann Arbor Residents?
For Buyers
The increase in new listings is a welcome relief for those entering the Ann Arbor market, offering a wider variety of options. However, homes are still moving quickly, with an average of just 45 days on the market. Buyers need to act fast and come prepared with pre-approvals to stay competitive. Prices are trending upward, so today’s buyers are also likely making a smart investment for the long term.
For Sellers
With the percent of list price received at 100.4%, sellers can feel confident about pricing their homes competitively while achieving great returns. With Ann Arbor’s robust market demand, it’s a seller’s market with potential for multiple offers, particularly when homes are attractively priced and well-maintained.
Investors
The rapidly rising median sales price (up 12.4% year-over-year) signals consistent appreciation in property values. Coupled with low inventory and high demand, Ann Arbor continues to be an excellent choice for long-term real estate investments.
A Closer Look at Ann Arbor Homes
Want to know more about the homes defining the Ann Arbor market? Here are a few standout examples from the first quarter:
The Most Expensive Home Sold in Q1
2750 Whispering Woods Drive, Walnut Ridge Subdivision sold for $2,325,000. This stunning luxury property demonstrates the premium segment of the market!
Key Features:
- 4,738 sq. ft. (+5,300 finished lower level)
- 5 bedrooms
- 5 full baths
- A full basketball court in the lower level
The Average Sale Price Home
2274 Sun Valley Drive, Lake Forest Highlands Subdivision sold for $660,000. A fantastic family home offering modern living with ample space.
Key Features:
- 2,600 sq. ft. (+700 finished lower level)
- 4 bedrooms
- 2.1 baths
The Median Sale Price Home
1335 Algonac Avenue, Van Dusen Subdivision sold for $575,000. Located near downtown, this charming home reflects the heart of Ann Arbor’s balance between value and quality.
- 1,837 sq. ft. (+1,100 finished lower level)
- 3 bedrooms
- 2 full baths
The Least Expensive Home Sold
4179 Dexter Ann Arbor Rd., Scio Township sold for $170,000. While it needs more remodeling and a new septic system, this property shows that opportunities still exist for buyers with smaller budgets or those looking for a fixer-upper.
- 826 sq. ft.
- 2 bedrooms
- 1 bath
What’s Driving the Market?
The Ann Arbor market remains shaped by several key factors, including:
- Strong Local Economy
With a thriving economy driven by the University of Michigan, tech companies, and healthcare services, Ann Arbor attracts a diverse group of homeowners and renters alike.
- Consistent Demand
Demand for homes in Ann Arbor remains high, with its balance of cultural opportunities, educational institutions, and beautiful residential communities continuing to draw buyers from both within Michigan and across the country.
- Limited Inventory
Although new listings are up from last year, inventory still remains tight compared to buyer demand, helping to boost prices and keep competition strong.
Looking Ahead
If Q1 is any indication, 2025 is shaping up to be an exciting year for Ann Arbor real estate. The combination of rising prices, increasing listings, and consistent buyer activity makes now a critical time to explore opportunities, whether you’re looking to buy, sell, or invest.
Overall, Ann Arbor’s housing market remains robust, offering opportunities for all. If you’re ready to make your move or need help navigating this dynamic market, we’re here to help. Reach out today to work with a trusted local expert who knows the ins and outs of our vibrant Ann Arbor community.
Curious about what your home is worth in this market? Contact us today for a free consultation! 734-761-3060 or info@bouma.com