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Martin Bouma's Blog

By Martin Bouma | Agent in Ann Arbor, MI

Ann Arbor Real Estate Market Update, July, 2010

Ann Arbor News and Trends, July 2010

As we head into the middle of the summer, the Ann Arbor real estate market has seen a 10% decrease in inventory from June to July. In the lower price points the drop is even more significant. There is a 16% drop in the 200K - 300K price range, and a 17% decrease in the 300-400K price range. Both of these price ranges are highly active. The main reason that we are seeing a decrease in inventory is the fact that home owners are locked into their current homes due to owing more than their house is worth.

The interesting thing to notice is that in spite of this decreasing inventory in the Ann Arbor Real Estate market, we are not really seeing much of an increase in pricing. There was a little bit of an increase in April as buyers were trying to take advantage of the Tax credit, however, now that has died down. I still like to let buyers know that this is probably one of the best times to buy a home. Prices are back to where they were 10 years ago, and the interest rates are at historical lows - in the 4.75% for a 30 year fixed. Keep in mind that a 1% increase in interest rates decreases your buying power by 10%. Expect a rash of activity in the next 2-3 weeks as buyers purchase a home to close before school starts. This will continue to lower the inventory as we head towards the end of the summer.

In the real estate market, if there is less than a 5 months supply of homes on the market, you are in a seller's market. A 5-7 month supply of homes is a balanced market. Anything over 7 months is a buyer's market. As you'll notice from the stats below, prices appear to have stabilized under 400K, however, there is still downward pressure on prices once you get above 400K.

ANN ARBOR REAL ESTATE MARKET, JULY, 2010

  

<$100 k

100-200k

200-300k

300-400k

400-500k

500-600k

Listings

36

198

174

77

63

42

Under Contract

15

49

44

14

14

4

Sales Past 12 Months

60

352

344

153

77

45

Absorption Rate:

5

29.3

28.7

12.8

6.4

3.8

Months Supply

7.2

6.8

6.1

6

9.8

11.1

             

  

600-700k

700-800k

800-1000k

>1000k

All

Rentals

Listings

26

28

26

29

699

85

Under Contract

4

3

6

1

154

17

Sales Past 12 Months

32

14

13

11

1101

239

Absorption Rate:

2.7

1.2

1.1

9

91.8

19.9

Months Supply

9.6

23.3

23.6

32.2

7.6

4.3

   ZIP Codes: 48103, 48104, 48105, 48108

Approximate Location Boundaries: Ann Arbor School District

Location Characteristics: Ann Arbor has many distinct neighborhoods that offer a variety of home buying opportunities. The area is a cultural Mecca with many performance centers and theaters, live music, dance groups, libraries, museums, parks, & farmer's markets. It is considered the education capital of the Midwest because it is home to the University of Michigan, one of the country's top universities. The Ann Arbor area offers one of the most varied menus of restaurants in the state with Main Street as one of Michigan's best places to eat, people watch and shop. In July, Ann Arbor is host to the Ann Arbor Art Fairs, which is among the nation's top street festivals and takes up nearly all of the downtown area. Artists and shoppers travel from all over the country to attend this yearly event. Ann Arbor is a great place to live!

Thinking of relocating to one of America's top 50 cities?  If you live in Washtenaw County and are considering moving, let The Bouma Group help you find the perfect new home right here in Ann Arbor. Our real estate professionals are here to answer your questions, making your transition easy and painless.  An Ann Arbor condo may be the perfect choice; we've got everything you need to make an informed decision. Read what others have to say, then contact us. The Bouma Group can make your dream of living in one of America's top cities a reality!

 

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