The Downtown Ann Arbor Condo Market saw 12 closings in the 4th Qtr of 2019 with three of them being new construction condos at Kingsley Condos. This compares to only 3 closings in the 4th Qtr of 2018.
Three of the downtown sales are located at 515 N. Fifth Ave, which is a 4-plex built in 2013 that was converted into condos and located in the heart of Kerrytown. Unit #1 was priced originally for $1,495,000. The price was lowered to $1,149,900 and sold for $1,115,000 after 189 days on the market. Unit #2 was priced originally for $1,400,000. The price was lowered to $1,200,000 and sold for $1,149,000 after 228 days on the market. Unit #3 was priced at $450,000. The price was lowered to $399,000 and it sold for $400,000 after 217 days on the market.
Sloan Plaza saw 3 sales in the 4th Qtr, which is 9% of the total units in the building.
139 Ashley Mews – priced originally at $595,900, the price was lowered several times down to $450,000. It sold for $445,000 after being on the market for 211 days. This is a 1221 SF, 1 bedroom, 2 bath condo. It last sold in 2014 as a Bank Owned Property for $315,000.
115 W. Liberty – priced originally at $995,000, the price was lowered to $895,000 and sold for $895,000 after being on the market for 172 days. This unique 2,100 SF loft unit is located in the heart of downtown on top of retail space. It last sold in 2013 for $689,900.
111 N Ashley #1007 – priced at $550,000, this Ashley Terrace Penthouse unit sold for $525,000 in 13 days.
Excluding the new construction condos, nothing sold for list price or above in the 4th Qtr. with some of the condos having to lower their prices significantly.
As of January 1, 2020, there are 9 re-sale condos for sale with 3 under contract. There are also 24 condos available at Kingsley Condos where over 50% are now sold. We will be entering 2020 with 33 condos that are ready for occupancy. This is a 27% drop from the 1st Qtr of 2019 when there were 45 active listings.
Adding to the downtown inventory are the pre-sales on up-and-coming developments. The Gallery (21 units – 11 units are pre-sold) , The Garnet (10 units), and 309 Ashley (17 units – 10 are pre-sold). None of these new developments will be ready for occupancy until 2021.
Ashley Terrace has 6 active listings with 2 under contract. The average days on the market for these listings is 146 days.
Liberty Lofts has 1 condo for sale that is under contract. Priced originally at $559,900, the price was lowered to $519,900 and it went under contract after 140 days on the market.
North Main Lofts has 1 condo for sale. Priced originally at $649,900, the price was lowered to $589,000. It has been on the market for 238 days. It last sold in 2016 for $600,000.
As mentioned in previous issues, the downtown market has two dominant demographic groups that are buying. The first group consists of retiring baby boomers who tend to buy larger and higher priced units with one floor living. This demographic group is still growing. The second group consists of students and young professionals who tend to buy smaller and lower priced units and aren’t as concerned about one floor living and parking. It is this second group that is shrinking as they now have the option of renting brand new luxury apartments with beautiful facilities. With all but one of the active condos providing first floor living, the shrinking of this demographic group will not greatly affect the downtown market.
As we head into 2020, the signs are all positive for a healthy downtown market. With an absorption rate in 2019 of 4 sales per month, there is an 8 month supply of inventory. However, interest rates are still at an all-time low, the local economy is very strong with good paying jobs, and inventory is down 27% from last year.
As the market changes, be sure to get the most current information so you can make the right decisions. There are a lot of changes occurring in the downtown area, and being located downtown, The Bouma Group is very aware of upcoming construction projects and inventory. Should you wish to discuss the market, call our office at 734-761-3060 – it would be our privilege to work with you. Feel free to stop in and visit us anytime – we’re located downtown, at the corner of S. Main and Madison.