Priced Out of the Market? A Condo or Townhome Could Be Your Way In

Today’s home prices have a lot of buyers, especially first-time buyers, wondering if there’s even anything out there that’s in their budget. But owning a home may be more within reach than you think. Sometimes, it just means considering a different type of home.

Condos and townhomes can be a great way to buy without stretching every last dollar. And right now, two things make them worth a serious look.

There Are More Condos and Townhomes To Choose From

Maybe you feel like there’s just nothing out there for you, and you’ve exhausted all your options. But have you considered condos or townhomes? A lot of buyers start by looking for a single-family, detached home without even realizing what that search omits from their pool of choices.

According to HousingWire Data, nationally there were 233,030 condos and townhomes for sale this June. That’s more than any June in at least the past decade, and more than double the number available back in 2022 (see graph below):

That means there are more options out there in this segment of the market, and that’s especially good news for first-time buyers. These types of homes can be a great way to break into the market for less.

Just remember, that’s the national number. What’s available will depend on where you’re looking. But generally speaking, more options means less competition, more time to decide, and more room to negotiate.

What’s Happening with Ann Arbor Condos

Good news if you’re shopping for a condo in Ann Arbor: the market is opening up in your favor. Through the end of July, new listings climbed to 594 in 2026 from 563 last year, giving you more choices to explore. At the same time, pending sales eased to 343 (down from 389) and closed sales dipped to 345 (from 359), while homes now sit for 49 days on average versus just 29 a year ago. With median prices sliding slightly to $335,000 from $340,000, this shift toward more supply and a calmer pace means you have room to compare options, negotiate with confidence, and lean on expert guidance to find the right fit.

They Also Tend To Cost Less Than Single-Family Homes

Price is the other big draw. According to the National Association of Realtors (NAR), the median condo price was $380,000 in June. In contrast, the median single-family home price was $446,400 (see graph below):

That’s a difference of more than $66,000.

A big reason why? Condos are usually smaller than single-family homes. And smaller homes can come with smaller price tags.

And if you don’t need all that extra space, that lower entry price could be exactly what gets you through the door.

What’s Happening with Condos vs. Homes in Ann Arbor

Here’s where the numbers get exciting for anyone eyeing an entry into the Ann Arbor market: through July 2026, the median home sold for $586,500 while the median condo came in at $335,000, a gap of over $250,000. That difference carries into averages too, with homes at $678,466 versus $448,299 for condos. Even a year ago, Ann Arbor condos began experiencing more price reductions. For you, this means a condo can be a smart, more accessible way to plant roots in a neighborhood you love, without stretching your budget to single-family territory. With expert Realtor guidance and clear market insights on your side, you can turn that price advantage into a vibrant, low-maintenance lifestyle right where you want to be.

Condo or Townhome? How They’re Different.

For buyers who feel priced out of the market, a condo or townhome could be a way in. But there are some things to know. Before you start checking out homes, it’s good to understand how these two compare to each other, and to a single-family home.

• With a single-family detached home, you own the house and the land it sits on, and you don’t share any walls with neighbors. That means the most space and privacy. But it also usually comes with a higher tag, and all the maintenance is on you.
• With a townhome, typically you own the building you live in and the lot it sits on. They’re usually multi-level, so you get more space, and you share two walls at most. You’ll also have more say over how your home looks and how repairs get done, but more of that upkeep falls on you.
• With a condo, you own just the inside of your unit and may have access to community features like a pool or gym. The building and shared space belong to everyone who lives there, which means you have less maintenance responsibilities. But you’ll also likely have more neighbors around you, less control over building decisions, and higher HOA fees since the HOA handles the exterior and common areas.

Bottom Line

Ready to make your move in Ann Arbor? A condo or townhome could be your path to owning a home without blowing your budget. The Bouma Group, Realtors knows this market inside and out, from the walkable downtown condos to the tucked-away neighborhoods you’ll love calling home. Our team pairs deep local expertise with personalized guidance, listening to your budget, your must-have features, and the lifestyle you’re after, then matching you with properties that truly fit. Whether you’re drawn to low-maintenance condo living or a place with a little more room to grow, we’ll walk you through financing options, honest market insights, and every step in between so you feel confident from first tour to closing day.

Let’s find the right spot for you together, reach out today at 734-761-3060 or info@bouma.com. Let’s turn your Ann Arbor plans into keys in your hand.

Would You Let $80 a Month Hold You Back from Buying a Condo or Home?

Should $80 a Month Stop You From Investing?

A lot of buyers are stuck in “wait and see” mode right now. They’re watching rates hover a little above 6% and thinking, I’ll buy once they hit the 5s. Because who doesn’t want a better rate?

But here’s the thing: that 5.99% number might not save you as much as you think.

Affordability is still a challenge. There’s no question about that. But the market has given savvy buyers a head start. Mortgage rates have already come down over the past few months. And the drop we’ve seen saves you more than you’d think.

How Much You’ve Already Saved, Without Realizing It

Let’s put some real numbers to it. Rates peaked for the year in May when they inched above 7%. But since then, they’ve been slowly declining. Now, they’re sitting in the low 6s. And while that may not sound like a big deal, that change translates to real dollars.

According to data coming out of Redfin, the typical monthly payment on a $400,000 home is already down almost $400 since May.

That means if you’re buying a home now, you’re saving hundreds of dollars every month compared to what you would have been able to get earlier this spring. That’s real money that makes a real difference for buyers who paused their plans because they thought homeownership was out of reach.

And while it may be tempting to wait even longer to see bigger savings, that’s a gamble that could cost you. Here’s why.

Where Experts Say Rates Are Headed

For starters, most experts say mortgage rates are likely to stay pretty much where we are today throughout 2026. So, there’s no guarantee we’ll see a rate much lower than what we have now. Only one expert forecaster is saying rates could fall into the upper 5s next year (see graph below):

And even if rates do dip below 6%, the extra savings you’re holding out for won’t move the needle as much as you might expect.

The Real Math Behind a 5.99% Rate

Let’s break it down. If rates come down to 5.99% from where they’ve been lately that’s a difference of only about $80 a month on an average priced home – give or take a bit based on your price point and the rate your lender quotes you (see chart below):

Eighty dollars. That’s it. And for the typical family, that’s about one dinner out (or one dinner in, if you have it delivered). That’s not enough to change the game for most buyers. But the savings of nearly $400 we already have compared to when you paused your search in the spring? That might be. 

So, the question to ask yourself is this:

Is an extra $80 savings really worth the wait?

Because while you’re holding out for that small dip, the bigger opportunity might be slipping away.

When Rates Fall, Competition Follows

Right now, you have more homes to choose from, sellers who are ready to negotiate to get a deal done, and fewer buyers to compete with. But once rates fall below 6%, buyer mindsets will shift and all of that will change.

The National Association of Realtors (NAR) reports that if rates hit 6%, about 5.5 million more households will be able to afford the median-priced home. Even if only a small fraction of them decide to buy, that could mean hundreds of thousands of buyers getting back into the market.

That creates more competition for you, which would push home prices even higher – maybe high enough to cancel out the extra savings you waited for.

So, if you’re waiting for rates below 6%, just keep in mind… that extra $80 may not be worth it in the grand scheme of things.

Bottom Line

You don’t have to wait for 5.99%. You have the chance to move (and save) right now. So, ask yourself: Would you let $80 hold you back from buying a condo or home?

If you find a home you love and the math makes sense, getting ahead may be the best strategy. Let’s run your numbers so you can see what you’re working with in our market.

Mortgage Rates Just Saw Their Biggest Drop in a Year

You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way.

On Friday, September 5^th, the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year.

What Sparked the Drop?

According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker-than-expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result.

Basically, we’re seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down.

Why Buyers Should Pay Attention Now

But this isn’t just about one day of headlines or one report. It’s about what the drop means for you.

This recent change saves you money when you buy a home or condo. The chart below shows you an example of what a monthly mortgage payment (principal and interest) would be at 7% (where mortgage rates were in May) versus where rates roughly are now:

Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings.

How Long Will It Last?

That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly.

So, make sure you’re connected with a good agent and trusted lender. We keep a close eye on inflation indicators, job market updates, and reactions to upcoming Fed policy to gauge where mortgage rates may go from here.

But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says:

“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” 

And that’s gives you more reason to hope than you’ve had in quite some time.

Bottom Line

This is the shift you’ve been waiting for.

Mortgage rates just saw their biggest decline in over a year. And if rates stay near this level, it could make a home or condo you couldn’t afford just a few months ago feel possible again.

What would today’s rates save you on your future monthly payment? Let’s connect so you can find out. Contact us today at The Bouma Group, Realtors at 734-761-3060 or info@condohotline.com and we’ll make a plan together. See what condo communities Ann Arbor has to offer and start dreaming about your new home!

Condos Could Be a Win for Today’s Buyers

Condos Could Be a Win for Today’s Buyers

Not every homebuyer wants the biggest house on the block. Some want something simpler, more affordable, and easier to maintain, especially in a market where every dollar counts. That’s where condos come in.

For first-time buyers, they can be a smart way to get into homeownership without stretching your budget. For downsizers, they offer less space to maintain, with the flexibility to stay in a great location.

And right now, condos are one of the most buyer-friendly parts of the market.

Condo Inventory Is Up, And That Means More Choice

According to the National Association of Realtors (NAR), there are 194,000 condos for sale right now. That’s the second highest amount we’ve seen in the last three years (see graph below):

Just remember, this is the national figure. The exact number is going to vary based on where you’re looking to buy. But, generally speaking, you have more options and less competition. In Ann Arbor right now, there are 140 condos for sale ranging in price from $174,900-$2,950,000 with a median price of $399,950, and an average of 85 days on the market. 25 of these units are new construction that range from $501,863-$2,858,000. If you’re looking for a good value, an existing condo in Ann Arbor is your best bet. See all Ann Arbor Condos currently for sale

You’re not stuck waiting for something to pop up or rushing into an offer just to beat someone else to it. You’ve got plenty to choose from. And if you’re particular about layout, location, or amenities, this is your chance to be selective. See Ann Arbor complex details

That’s a big shift from the market frenzy of just a few years ago. Compared to early 2022, we’ve got nearly double the condos available now. That gives you more breathing room to find the right fit.

Prices Are Cooling, and Buyers Hold More Negotiating Power

And since there are more for sale, many sellers are more open to negotiating right now. So, you may be able to get a better price. As Redfin explains:

“. . . condo buyers in many cities may be able to find sellers who are willing to give concessions and/or sell for less than their asking price.”

Condo prices are starting to ease in many markets. According to Intercontinental Exchange (ICE), condo prices dipped 1.3% in June compared to last year. And over half of the top 100 U.S. metros saw condo prices drop slightly year-over-year. Ann Arbor has seen a drop of 3.3% in the median price year-to-date and 1.5% decrease in the average sales price.

Data from Redfin shows what the recent dip in prices looks like (see graph below):

That doesn’t just help with affordability, it also shifts the power dynamic. Condo buyers in many markets are now in a position to negotiate on price and ask for concessions, like help with closing costs.

Bottom Line

Condos aren’t just a fallback option. In today’s market, they’re one of the most strategic ways to buy. With more options, softening prices, and more room to negotiate, now could be the right time to make your move.

Could a condo check more boxes than you expected? Let’s talk through your options and find out. Contact us today at The Bouma Group, Realtors at 734-761-3060 or info@condohotline.com.

Mastering the Ann Arbor Condo Market: Seller Strategies for 2025

Ann Arbor Condo Seller Strategies to Use Now

The Ann Arbor condo market, once a hotbed of activity, has entered a phase of transformation. Sellers are navigating a more nuanced landscape shaped by changing buyer behavior, economic pressures, and evolving priorities. If you’re looking to sell your condo in 2025, understanding these challenges—and knowing how to tackle them—can make all the difference. Here, we’ll break down the key hurdles sellers are facing and share actionable seller strategies to help you succeed in today’s shifting market.

Challenge #1: Cooling Market & Price Reductions

The Ann Arbor condo market has slowed after years of rapid growth. Elevated interest rates, currently between 6–7%, have increased borrowing costs, limiting buyer budgets and dampening demand. At the same time, new developments, particularly around campus, have driven a rise in inventory—June 2025 listings are up about 14.5% compared to the same time last year. The rise of student apartments, combined with the above factors, have slowed the purchasing of condos by parents for their college students.

This combination of factors is leading many sellers to reduce prices to attract buyers in a competitive market.

How to Tackle This

• Price Strategically: Start with a realistic comparison of recent sales in your neighborhood to set a competitive price. Buyers are hyper-aware of value in the current climate, so pricing right from the beginning can reduce the need for reductions later on.
• Leverage Expertise: Work with a reliable real estate agent who understands Ann Arbor’s micro-markets. They can guide you on pricing trends and help maximize your condo’s appeal.

Challenge #2: Longer Time on Market

Gone are the days when condos would sell within hours of listing. Today, properties are sitting longer as buyers take their time exploring their options. With more inventory available, buyers feel less urgency to make impulsive offers. Active listings in Ann Arbor are averaging 76 days on market, compared with 22 days this spring.

How to Tackle This

• Stand Out With Staging: A well-staged condo can leave a lasting impression. Modern, inviting spaces that appeal to buyer preferences—such as neutral tones, tidy layouts, and up-to-date fixtures—can make your property shine.
• Invest in Marketing: Professional photography and a strong online presence are crucial for grabbing attention. Aggressive, tailored marketing campaigns can also help set your listing apart from the competition.

Challenge #3: Affordability and Economic Pressure

High interest rates aren’t the only financial hurdle in Ann Arbor. The city’s property taxes remain a significant factor for buyers. Combined with economic uncertainty, these costs are pushing many buyers to prioritize affordability, even at the expense of luxury features.

How to Tackle This

• Highlight Cost-Saving Features: Showcase aspects of your condo that reduce long-term expenses, such as energy-efficient appliances or updated insulation. Small upgrades like thesecan appeal to budget-conscious buyers.
• Stay Flexible: Be prepared for negotiations, whether it’s adjusting your price or offering concessions like covering part of the buyer’s closing costs. Flexibility communicates a willingness to work with potential buyers, which can help move a sale forward.

Challenge #4: Michigan-Specific Disincentives

Michigan sellers face unique financial hurdles, including the state’s “pop-up” tax policy. This rule reassesses property taxes at the time of sale, often resulting in a steep increase for new buyers. This may influence a buyer’s offer and negotiations, possibly affecting the seller’s final sale price. Additionally, Realtor commissions in Ann Arbor can eat into sellers’ profits.

How to Tackle This

• Plan for Tax Impacts: Consult with a local real estate expert to fully understand how taxes might affect your sale. Timing can be crucial—it might make sense to sell during periods of peak buyer interest when competition intensifies.
• Maximize Your Proceeds: Every dollar counts when dealing with costs like commissions. Skilled agents can help position your home to sell faster and at a better price, mitigating these concerns.

Challenge #5: Shifting Buyer Priorities

Today’s buyers are putting an emphasis on turnkey properties. Features like flexible layouts, modern finishes, and energy efficiency are top of mind. Condos that require updates or renovations are often overlooked in favor of move-in-ready homes.

How to Tackle This

• Upgrade Strategically: Focus on affordable yet impactful updates, such as modern lighting, fresh paint, or stainless-steel appliances. Even small changes can enhance buyer interest.
• Highlight Walkability: Proximity to walkable amenities, such as restaurants, retail spaces, and parks, remains a key driver in Ann Arbor. Play up these features in your listing and marketing efforts.

Final Thoughts

The Ann Arbor condo market in 2025 is complex, but it’s not without opportunity. Sellers willing to approach this evolving landscape with strategy, flexibility, and the guidance of local experts can still achieve success. Understanding the factors shaping the market—rising inventory, shifting buyer preferences, and financial hurdles—will help you prepare and adapt.

Whether it’s pricing competitively, staging effectively, or upgrading intelligently, taking deliberate action using these seller strategies is key to standing out in this highly selective market. Partnering with professionals who understand Ann Arbor’s real estate dynamics can also make the process less daunting and more rewarding. Remember, with the right focus and adaptability, the right buyer is out there for your condo.

Looking to list your Ann Arbor condo? The Bouma Group is here to help you succeed every step of the way. Reach out today for advice tailored to your specific goals at 734-761-3060 or info@condohotline.com.

Townhomes: A Smart Solution for Today’s Buyers

Townhomes: A Smart Solution for Today’s Buyers – Especially First Time!

Buying your first home in today’s market can feel tough. Between high home prices and mortgage rates, affordability is still a big challenge. And some buyers are making one simple trade-off that’s getting them in the door faster: square footage.

According to the National Association of Home Builders (NAHB), 35% of buyers are willing to purchase something smaller to make homeownership happen. One place you can usually find a smaller footprint— and sometimes better affordability —is in townhomes.

Why Townhomes Are Gaining Popularity

Townhomes typically cost less than single-family homes due to their more limited size. And that’s a big plus for today’s budget-conscious buyer. As Realtor.com says:

“In today’s market, affordability remains a key priority for homebuyers, making townhomes an attractive option because they are often priced more reasonably than single-family homes. It makes them especially appealing to first-time homebuyers on a tighter budget . . .”

So, if you’re trying to buy but feeling stuck because of rising prices, shifting your focus to townhomes could be one way to get into homeownership without maxing out your budget.

Builders Are Responding to the Demand

Builders have seen buyers’ appetite shift to smaller homes, and they’re adjusting to meet the demand. As Joel Berner, Senior Economist at Realtor.com, explains:

“Builders are making a concerted effort to provide smaller, more affordable inventory to the market in a way that the existing-home market cannot. Townhomes are a significant portion of that effort.”

And the numbers back it up. According to data from Realtor.com, townhomes now make up a bigger share of new construction listings than they did just a couple of years ago (see graph below):

That means, if you’re interested in this type of house, you have more choices than you would have had over the last few years. And more options that are potentially more affordable are definitely a good thing. It should make your search for your first home a bit easier.

Townhomes in Ann Arbor

From entry-level to luxury, Ann Arbor has a variety of townhomes to match every budget and lifestyle. Here are a few of the most popular in order of median sale price:

1. Wellesley Gardens $287,500
2. Alpine Condos $290,000
3. Chapel Hill $292,500
4. Georgetown Condos $305,000
5. Geddes Lake $307,500
6. Brentwood Square $322,500
7. Barclay Park $394,000
8. North Oaks $697,495
9. Ashley Mews $925,000
10. Main on the Park $1,700,000

Is a Townhome Right for You?

If you’ve been focused only on more traditional homes with their own yards, an agent can help you explore whether a townhome could work for you. Who knows, you may find out you love the lifestyle. A lot of people do. As an article from the National Association of Realtors (NAR) explains:

“Townhomes tend to cost less than single-family detached homes and can be appealing to young professionals who may desire medium-density, walkable neighborhoods.”

That’s because they’re lower maintenance, they can provide a sense of community with other residents, and they have their own unique amenities. Not to mention, they give you the chance to start building wealth through homeownership without the upkeep that comes with having your own detached, single-family home. And that can be great for first-time buyers who are a bit worried about the maintenance anyway.

But they also come with some other considerations, like dealing with noise through shared walls. If you’re a renter right now, maybe you’re used to that already. But these are the types of things you’ll want to think about. And that’s where an agent’s expertise comes in. They’ll help you weigh the pros and cons, so you understand how a townhome fits into your lifestyle and long-term goals before making your decision.

Bottom Line

If you’re struggling to find a home within your budget, it may be time to expand your search and consider options you haven’t before, like townhomes. Sometimes, compromising a little bit on space is worth it to get your foot in the door.

What matters most to you — space, location, or budget? Let’s figure out where you can flex to make homeownership happen. Contact us today at The Bouma Group, Realtors at 734-761-3060 or info@condohotline.com.

Understanding the Difference Between a Condo and Site Condo

Condo vs. Site Condo

For many potential homebuyers, the terms “condo” and “site condo” can be confusing. While both offer unique advantages, they cater to different preferences and lifestyles. Whether you’re a first-time buyer or someone looking to simplify your living situation, understanding these options will help you make the best choice for your needs.

What is a Condo?

A condominium, commonly referred to as a condo, is a type of housing where you own just the interior unit. Condos are often part of larger buildings or complexes with shared walls and communal areas. Here are some key features:

• Ownership: You own individual interiors but share ownership of common areas like hallways, lobbies, and amenities.
• Maintenance: The homeowner’s association (HOA) typically manages exterior maintenance, landscaping, and amenities, allowing you to enjoy lower maintenance responsibilities.
• Amenities: Many condos come with added comforts such as pools, fitness centers, and community lounges, providing a luxurious and convenient lifestyle.
• Affordability: With shared costs and smaller living spaces, condos can be a more affordable option, often leading to lower property taxes and utility bills.

What is a Site Condo?

A site condominium, or site condo, offers a different kind of ownership experience. While it carries the name “condo,” it resembles a traditional single-family home in many ways. Here’s what makes a site condo distinct:

• Ownership: As a site condo owner, you own both the dwelling and the land it sits on, much like a single-family home.
• Privacy and Space: These properties offer the privacy and space typical of traditional homes but with shared community responsibilities for any common areas.
• Personalization: Owning the land gives you more control over your property, including the ability to personalize your outdoor space.
• Variety: Site condos can range from detached homes to attached units, offering a diverse selection of housing types within the community.

Why Did Site Condos Become a Popular Choice for Builders in Michigan?

Site condos have emerged as a popular choice for builders in Michigan due to their unique blend of advantages that appeal to both developers and homebuyers. Builders favor site condos because they allow for greater flexibility in development compared to traditional subdivisions. This type of housing offers a streamlined regulatory process, often bypassing some of the more stringent subdivision regulations, thus reducing time and cost associated with development. Furthermore, site condos provide an opportunity to offer buyers the combination of low-maintenance living with the privacy and autonomy of single-family homes. As a result, builders can cater to the growing demand for affordable, flexible, and varied housing options, making site condos a strategic and appealing choice for new housing projects.

Which is Right for You?

Choosing between a condo and a site condo largely depends on your lifestyle preferences and priorities.

• If you value convenience, lower maintenance, and amenities, a traditional condo might be the ideal choice.
• Alternatively, if you desire more privacy, control over your property, and outdoor space, a site condo could be the better option.

Ultimately, both types of housing have their distinct advantages and can offer a satisfying living experience. Consider what’s most important to you and how each option aligns with your lifestyle goals. Whether you’re drawn to the vibrant community life of a condo or the autonomy of a site condo, there’s the perfect home out there waiting for you. To learn more about the differences between condos and site condos, or to see what’s currently available for sale, contact us at The Bouma Group today! 734-761-3060 or info@condohotline.com

This Is the Sweet Spot Homebuyers Have Been Waiting For

Today’s Market is a Sweet Spot for Condo and Homebuyers

After months of sitting on the sidelines, many condo and homebuyers who were priced out by high mortgage rates and affordability challenges finally have an opportunity to make their move. With rates trending down, today’s market is a sweet spot for buyers—and it may not last long.

So, if you’ve put your move on the back burner, here’s why maybe you shouldn’t delay your plans any longer.

As you weigh your options and decide if you should buy now or wait, ask yourself this: What do you think everyone else is going to do?

The truth is, if mortgage rates continue to ease, as experts project, more buyers will jump back into the market. A survey from Bankrate shows over half of homeowners would be motivated to buy this year if rates drop below 6% (see graph below):

With rates already in the low 6% range, we’re not terribly far off from hitting that threshold. The bottom line is, that when they drop into the 5s, the number of buyers in the market is going to go up – and that means more competition for you.

That increased demand will likely push home prices up, which could potentially take away from some of the benefits you’d gain from a slightly lower interest rate. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), explains:

“The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes. In markets with ongoing housing shortages, this price increase can offset some of the affordability gains from lower mortgage rates.”

So, while waiting to buy may seem like a smart move, it could backfire if rising prices outpace your savings from slightly lower rates.

What This Means for You

Right now, you’ve got the chance to get ahead of all of that. Today’s market is a buyer sweet spot. Why? Because a lot of other buyers are waiting – which means not as many people are actively looking for condos and homes. That means less competition for you.

At the same time, affordability has already improved quite a bit. Recent easing in mortgage rates has made homeownership more accessible. As Mike Simonsen, Founder of Altos Research, says:

“Mortgage payments on the typical-price home are 7% lower than last year and are 13% lower than the peak in May 2024.”

And while the supply of homes for sale is still low, it’s also higher than it’s been in years. According to Ralph McLaughlin, Senior Economist at Realtor.com:

“The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.”

This means you now have more options to choose from than you’ve had in quite a while.

With fewer buyers in the market, improving affordability, and more homes to choose from, you have the chance to find the right one before the competition heats up.

Why Waiting Could Cost You

If you’re waiting for the perfect time to buy, it’s important to understand that timing the market is nearly impossible. The longer you wait, the higher the risk that market conditions will shift—and not necessarily in your favor. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“It’s one of those things where you should be careful what you wish for. A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”

Bottom Line

Don’t wait until you have to deal with more competition and higher prices – you already have the chance to buy a condo or home while we’re in the sweet spot today. Let’s connect to make sure you’re taking advantage of it. 734-761-3060 or info@condohotline.com.

Tips for Younger Homebuyers: How To Make Your Dream a Reality

Tips for Younger Homebuyers in Today’s Real Estate Market

If you’re a member of a younger generation, like Gen Z, you may be asking the question: will I ever be able to buy a home? And chances are, you’re worried that’s not going to be in the cards with inflation, rising home prices, mortgage rates, and more seemingly stacked against you.

While there’s no arguing this housing market is challenging for first-time homebuyers, it is still achievable, especially if you have professionals on your side.

Here are some helpful tips:

1. Explore Your Options for a Down Payment

If a down payment is your #1 hurdle, you may have options to give your savings a boost. There are over 2,000 down payment assistance programs designed to make homeownership more achievable. And, that’s not the only place you may be able to get a helping hand. While it may not be an option for everyone, 49% of Gen Z homebuyers got money from loved ones that they used toward a down payment, according to LendingTree.

And chances are you won’t need to put 20% down (unless specified by your loan type or lender). So be sure to work with a trusted mortgage professional to explore your options, find out how much you’ll really need, and learn about any guidelines on getting a gift from loved ones.

2. Live with Loved Ones To Boost Your Savings

Another thing a number of Gen Z buyers are doing is ditching their rental and moving back in with friends or family. This can help cut down your housing costs so you can build your savings a whole lot faster. As Bankrate explains:

“. . . many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”

3. Cast a Broad Net for Your Search

When you’ve saved up enough, here’s how a pro will help you approach your search. Since the supply of condos and homes for sale is still low and affordability is tight, they’ll give you strategies and avenues you may not have considered to open up your pool of options.

For example, it’s usually more affordable if you consider a rural or suburban area versus an urban one. So, while the city may be livelier and more energetic, the cost of living may be reason enough to look at something further out. And if you consider smaller homes and condos or townhouses, you’ll give yourself even more ways to break into the market. As Colby Stout, Research Analyst at Bright MLS, explains:

“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”

4. Take a Close Look at Your Wants and Needs

And lastly, an agent can help you really think about your must-have’s and nice-to-have’s. Remember, your first home doesn’t have to be your forever home. You just need to get your foot in the door to start building equity. If you want to buy, you may find making some compromises is worth it. As Chase says:

“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”

An agent will help you prioritize your list of home features and find places that can deliver on the top ones. And they’ll be able to explain how equity can benefit you in the long run and make it possible to move into that dream home down the line.

Bottom Line

Real estate professionals have expertise on what’s working for other buyers like you. Lean on them for tips and advice along the way. As Directors Mortgage says, with that support you can make it happen:

 

“The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach. By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”

 

Let’s connect to get you set up for long-term success. You can reach The Bouma Group, Ann Arbor’s Condo Specialists at 734-761-3060 or info@condohotline.com.

Check out the top 10 most affordable condo complexes in Ann Arbor and see if one may be a good fit for you!

What You Need to Know About Today’s Down Payment Programs

Down Payment Programs Aren’t Just for First-Time Homebuyers

There’s no denying it’s gotten more challenging to buy a condo or home, especially with today’s mortgage rates and home price appreciation. And that may be one of the big reasons you’re eager to look into grants and assistance programs to see if there’s anything you qualify for that can help. But unfortunately, many homebuyers feel like they don’t know where to start.

A recent Bank of America Institute study asked prospective buyers where they lack confidence in the process and need more information. And this is what topped the list:

53% said they need help understanding home-buying grant programs.

So, here’s some information that can help you close that gap.

What Is Down Payment Assistance?

As the Mortgage Reports explains:

“Down payment assistance (DPA) programs offer loans and grants that can cover part or all of a home buyer’s down payment and closing costs. More than 2,000 of these programs are available nationwide. . . DPA programs vary by location, but many home buyers could be in line for thousands of dollars in down payment assistance if they qualify.”

And here’s some more good news, you probably don’t need to save as much for your down payment as you think. Contrary to what you may have heard, typically you don’t have to put 20% down unless it’s specified by your loan type or lender. So, you likely don’t need to save as much upfront, and there are programs designed to make your down payment more achievable. Sounds like a win-win.

First-Time and Repeat Buyers Are Often Eligible

It’s also worth mentioning, that it’s not just first-time homebuyers that are eligible for many of these programs. That means whether you’re looking to buy your first house or your fifth, there could be an option for you. As Down Payment Resource notes:

“You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”

Additional Down Payment Resources That Can Help

Here are a few down payment assistance programs that help buyers achieve their dream of homeownership:

• Teacher Next Door is designed to help teachers, first responders, health providers, government employees, active-duty military personnel, and Veterans reach their down payment goals.
• Fannie Mae provides down payment assistance to eligible first-time homebuyers living in majority-Latino communities.
• Freddie Mac also has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.
• The 3By30 program lays out actionable strategies to add 3 million new Black homeowners by 2030. These programs offer valuable resources for potential buyers, making it easier to secure down payments and realize their dream of homeownership.
• For Native Americans, Down Payment Resource highlights 42 U.S. homebuyer assistance programs across 14 states that ease the path to homeownership by providing support with down payments and other associated costs.

If you want more information on any of these, the best place to start is by contacting a trusted real estate professional.

We’ll share more details about what may be available, including any other programs designed to serve specific professions or communities. And even if you don’t qualify for these types of programs, we can help find out if there are any other federal, state, and local options available you should look into.

Bottom Line

Affordability is still a challenge, so if you’re looking to buy, you will want to make sure you’re taking advantage of any and all resources available.

Connect with us at The Bouma Group at 734-761-3060 or info@bouma.com and let’s explore your options!