Second Quarter Stats for Downtown Condos

Aerial View of Downtown Ann Arbor in Summer Looking South

The second quarter of 2025 has brought noteworthy changes to the downtown Ann Arbor condo market, presenting both opportunities and challenges for buyers and sellers. With a sharp 90% increase in inventory, longer average Days on Market (DOM), and exciting new developments in the Kerrytown area, the market is buzzing with activity. Whether you’re looking to buy or sell, understanding these shifts and knowing how to navigate them can make all the difference.

Key Market Trends for the Second Quarter

1. Inventory Expansion

The number of active condo listings in downtown Ann Arbor surged by 90% compared to Q2 2024. Last year, only 11 units were available; this year, that number rose to 21.

For buyers, this increase means more options and stronger negotiating power. For sellers, however, it creates a more competitive environment, making pricing strategy and property presentation critical to standing out.

2. Longer Days on Market (DOM)

The average DOM for active listings has climbed to 76 days, up significantly from the 22-day average of recently sold properties. This trend suggests that higher inventory is giving buyers more time to weigh their options.

Sellers should take note: pricing accurately, investing in professional staging, and leveraging targeted marketing are key to capturing buyer interest and reducing time on the market.

N Fourth Condo building in Downtown Ann Arbor's Kerrytown district

N Fourth Condo building in the Kerrytown district

3. Noteworthy Sales Highlights

Despite market challenges, Q2 2025 saw some remarkable sales activity:

  • A total of 19 condos were sold during the quarter.
  • Ashley Terrace led the way with five sales, though all closed below their listed prices.
  • The highest sale of the quarter occurred at 401 N. 4th Avenue, selling for $2.15 million—$165,000 above list price.

This shows that while competition is fierce, unique and desirable properties can still command premium prices and strong buyer interest.

4. Increase in Price Reductions

Price reductions rose by 86% in June compared to the same month in 2024. Furthermore, only 25% of condos sold above list price—a notable drop from 38% in 2024 and 66% in 2023.

For buyers, this cooling trend signals opportunities to negotiate, especially for properties that have been on the market longer or require updates. Sellers, on the other hand, must adapt with competitive pricing and appealing home presentation to attract today’s more cautious buyers.

Detroit Street Condos in Downtown Ann Arbor's Kerrytown District

Detroit Street Condos Under Construction in the Kerrytown District

Exciting Developments in Kerrytown

Kerrytown continues to thrive as a vibrant urban neighborhood, with two exciting new condo projects on the horizon:

  • The Market Place building at 303 Detroit Street is being transformed into 14 modern condos.
  • Braun Court is set to become a seven-story building featuring 36 condos.

These developments will not only add inventory but also reinforce Kerrytown’s reputation as a sought-after location for urban living.

Advice for Sellers

Adapting to the evolving market is essential for sellers. Here’s how to stay ahead:

  • Price competitively: Overpricing can lead to longer DOM, which dampens buyer interest. Use real-time market data to set an accurate price.
  • Invest in presentation: Professional staging can enhance your property’s appeal, showcasing its best features to potential buyers.
  • Market strategically: Partner with an experienced Realtor to craft targeted marketing campaigns that highlight your property’s strengths and attract serious buyers.

Keep in mind, securing an offer within the first 7–10 days is crucial. Homes that sit on the market longer may struggle to maintain buyer interest or achieve full-price offers.

Opportunities for Buyers

For buyers, the current market offers enticing possibilities:

  • More options: The expanded inventory provides a wider range of properties to choose from, with varying layouts, price points, and locations.
  • Greater negotiating power: Longer DOM and increased listings give buyers leverage to negotiate favorable deals or request updates as part of the purchase.
  • Act quickly for top properties: Turnkey condos in prime locations are still selling quickly, often above list price. Knowing what you want and acting decisively is key.

The Value of Expert Representation

Navigating a dynamic market requires expertise. Working with a knowledgeable Realtor can give you a significant advantage:

  • In-depth market insight: Expert Realtors understand the downtown Ann Arbor and Kerrytown markets, providing the data and trends you need to make informed decisions.
  • Strategic planning: Realtors help sellers position their properties for success and guide buyers toward the best opportunities and deals.

At The Bouma Group, we specialize in the downtown Ann Arbor condo market. From accurate market analysis to strategic marketing and skilled negotiation, we provide the tools and expertise you need to achieve your goals.

Looking Ahead

Whether you’re preparing to sell or exploring buying opportunities, staying informed about Ann Arbor’s shifting condo market is essential. With more inventory, new developments, and changing buyer behavior, the landscape is evolving rapidly. With the right strategies and expert guidance, you can seize these opportunities and succeed in Q2 2025 and beyond.

When you’re ready to make your move, reach out to The Bouma Group for personalized support. We’re here to help you navigate every step of your condo journey.

Now is the perfect time to take advantage of the downtown Ann Arbor market—connect with us today at 734-761-3060 or info@condohotline.com!