Ann Arbor Condo Report – June 2019

Equal Inventory Listed and Sold in June

Great news for sellers in the month of June, as 68 condos were listed and 68 were sold in Ann Arbor. Last June, 87 units were listed for sale, a 21.8% decline, and 53 were sold, 28.3% increase. The average listing price was $316,090 versus $353,306 in June 2019, a 10.6% decrease. As for the average selling price, there was a 5.3% increase from $283,620 to $298,525. Condominiums were usually on the market for 25 days.

The year-to-date statistics look decent in comparison to last year. 421 homes have been entered into the multiple listing service, a 3.2% increase from the 408 at this time in 2018. Only a slight decline compared to last year’s ALP, the ALP for half way through this year is $341,102. A grand total of 293 condos have been sold thus far, an increase of 21% from the 242 before. Overall, the ASP is $291,760 versus $280,807 last year at this time, a 4% rise.

For all of your condo needs and questions, contact the condominium experts with The Bouma Group at (734)761-3060 or email info@condohotline.com. Stay tuned on the Ann Arbor condo market by checking back here!

2 Myths Holding Back Condo Buyers

Freddie Mac recently released a report entitled, “Perceptions of Down Payment Consumer Research.” Their research revealed that,

“For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership. Part of the challenge for those planning to purchase a home is their perception of how much they will need to save for the down payment…

…Based on our recent survey of individuals planning to purchase a home in the next three years, nearly a third think they need to put more than 20% down.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the funds needed to qualify for a home loan. According to the same report:

22% of renters and 31% of homeowners believe lenders require 20% or more of a sale price as a down payment for a typical mortgage today. And,

“If a 20% down payment was required, 70% of those who were planning to buy a home in the next three years said it would delay them from purchasing and nearly 30% indicated they would never be able to afford a home.”  

While many believe at least 20% down is necessary to buy the home or condo of their dreams, they do not realize programs are available which permit as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined!

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Many either don’t know or are misinformed concerning the FICO® score necessary to qualify, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans. As indicated in the chart above, 52.4% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first condo or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream may already be within your reach! Contact us, the Ann Arbor Condo specialists to begin your new condo search at 734-761-3060 or info@condohotline.com.

 

Ann Arbor Condo Report – March 2019

Spring Inventory Sees a Spike

If you’re looking to buy an Ann Arbor condo, now is the time to do so! There has been a large increase in new listings, from 69 units to 90, resulting in a 30% increase. Further, listing prices have also experienced a 13.2% drop from $377,729 to $327,774 this past month. Unfortunately new inventory has been slower to exit the market, with only 29 condos selling comparative to the 35 last March – a 17% decrease. Unfortunately, the average days on the market is 52 days, a massive 160% rise. There has been a 9% increase in selling prices though, $278,132 versus $303,492.

Looking at the year-to-date statistics, there has been 171 units sold since last March, a 9% increase from the 147 the previous year. Cumulatively, the average listing price is $337,421, which is a 8% in comparison to $367,749 to the year prior. Thus far, 99 condos have been sold and last year 80 were sold at this time – a 23.7% increase. There was a 3.7% in the ASP from $288,887 to $300,060.

Whether you are looking to buy a condo or are considering selling, contact the condo specialists with The Bouma Group at (734)761-3060 or email info@condohotline.com. Stay up-to-date on all of your Ann Arbor condo needs by checking back here!

5 Reasons to Sell Your Condo the Spring!

Here are 5 compelling reasons listing your condo for sale this spring makes sense.

1. Demand Is Strong

The latest Buyer Traffic Index from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home or condo.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in most of the country, there are not enough homes for sale to satisfy the number of buyers.

Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move, as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners are granted the freedom to move.

Many homeowners were reluctant to list their home over the last couple of years for fear that they would not find a home to move in to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you to decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Buyers know exactly what they can afford before home shopping. This makes the entire selling process much faster and simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 47 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has created a buyer’s market. This means that if you are planning on selling a starter or trade-up home, it will sell quickly, AND you’ll be able to find a premium home to call your own!

According to CoreLogic, prices are projected to appreciate by 4.6% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

If you’re ready to find out what your condo is worth and what you need to do to get it sold, contact us, the condo specialists at 734-761-3060 or info@condohotline.com today!

No Worries… Condo Prices Coming in for a SOFT Landing

Condo prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest condo values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing.

The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales).

Today’s market is totally different. Mortgage standards are tighter than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will come to market. The Mortgage Bankers’ Association just announced that foreclosures are lower today than at any time since 1996.

Case Shiller looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findings over the last ten months:

As we can see, home price appreciation is softening as more inventory comes to market. This shows that real estate prices are not crashing, but merely returning toward historic appreciation numbers of 3.6% annually.

Bottom Line

Home and condo prices are leveling off. Long term, that is a good thing for the housing market. It’s especially good for condo buyers! Contact us today at 888-581-6923 to learn more about the Ann Arbor Condo market and your purchasing options!

 

Ann Arbor Condo Report – January 2019

Decline in Listing and Selling Prices for Ann Arbor Condos

Ann Arbor condos have seen a decline in many facets this new year. 38 units were listed this January, only a 5% decrease from the 40 sold the previous January. The average listing price declined 16.4%, $334,687 versus the $400,116. The great news for sellers is that 35 units were sold, which considering only the 38 units entered in January, means that 92% of the condos listed were theoretically sold. Further, compared to the first month of 2017 when only 23 condos, January 2019 saw a 52.2% rise in condos sold. Selling prices declined though, from $327,434 to $297,333, a 9.2% lower. Unfortunately for sellers, the average days on the market is extremely high at 76 days.

For all your condominium quandaries and questions, contact the condo specialists with The Bouma Group at 734-761-3060 or email info@condohotline.com. Keep up with our blog for all the information you need to know about Ann Arbor condos and surrounding areas!

Ann Arbor Condo Report – December 2019

More Inventory with Higher Prices for Ann Arbor Condos

In December, Ann Arbor condos saw an increase in inventory listed and sold, as well as, prices that were higher in contrast to 2017. Although low in comparison to November’s inventory, both the amount of listings and sales increased in comparison the December 2017 and more units were sold than listed in. A mere total of 27 condos were entered into the multiple listings service last month, but this is a 42.1% increase from the 19 condos entered the prior year in December. The average listing price experienced a significant 60.5% rise from $235,319 to $377,824 now. 30 condos were sold, meaning that 3 more condos were sold than were listed; further, this is a 11.1% increase compared to December 2017. Unfortunately for seller’s, the ALP was below the ASP which was $347,406, versus the ASP in the previous year which was $223,741, a considerable 55.3% difference. The average days on the market exceeded one month at 37 days.

Being the final report for the year 2018, we will now look at the total statistics for the year. A total of 778 condos were listed this past year, exceeding the 698 last year for an 11.5% jump. Cumulatively, the average listing price was $352,094 in comparison to the $295,521 in 2017, an increase of 19.1%. Comparative to both 2018’s listing price and 2017’s selling price, 2018’s ASP was below both; $288,012 was the ASP which was a 13.5% decline from 2017.

For all of your condominium quandaries and questions, contact the specialists with The Bouma Group at 734-761-3060 or email info@condohotline.com. Keep up with our blog for all of the information you need to know about Ann Arbor condos and surrounding areas!

Ann Arbor Condo Report – November 2018

New Inventory Added for Ann Arbor Condos Skyrocket

Ann Arbor condos have seen a drastic increase in the amount of condominiums entered into the multiple listings service this November. A total of 57 units were added, and this is a significant increase of 90% compared to the mere 30 units entered the previous November. The average listing price has seen a 9.6% increase from $347,111 to $380,532 currently. In this past month, 47 homes have been sold in comparison to the 53 in November 2017, a decline of 12.8%. The average sale price is $247,715, which is only a slight decrease from $251,296 the prior November. Unfortunately for sellers, there has also been a considerable 90% decline in the average days on the market, 20 versus 38 days.

So far this year, 750 condominiums have been listed for sale, this is a 10.5% increase from the 679 condos that had been entered at this time last year. The ALP has increased by 18.2%, $297,269 versus $351,490 this year. A total of 509 condos have been sold in 2018, in comparison to the 589 that had been sold by November in the previous year, a 13.6% decline. Cumulatively, the ASP is $283,492 thus far, which is a 11.4% rise compared to $254,502 in 2017.

Whether you are looking to buy or sell a condo, contact the experts with The Bouma Group at 888-581-6923 or email info@condohotline.com. Check back here for all the information you need about Ann Arbor condos and surrounding areas!

Ann Arbor Condo Report Update – October 2018

Ann Arbor Condo Buyers get to Experience the Best of Both Worlds

Luckily for Ann Arbor condo buyers, this October has seen almost a doubling in the amount of new listings entered and sale prices have decreased compared to the previous October. The increase in inventory is a significant 75.7%, from 37 units entered October 2017 to 65 entered this past month. Listing prices have also risen, $337,260 versus $371,708 now, which is a 10.2% increase. But like stated earlier, average selling prices have decreased, $265,636 this past month compared to $273,483 last year, this is only a small difference though. A total of 35 units were sold this past month, which is a 14.6% decline compared to the 41 sold the previous October. The average days on the market has stayed consistent with 26 days. Yearly statistics are not great for sellers, as there has been more listings entered and sale prices are lower than listing prices on average. So far this year, 694 units have been entered, which is 7.1% more than the 648 units that had been entered at this time in 2017. The average listing price has seen a considerable increase of 18.6%, from $294,766 to $349,448. Currently the ASP for this year is $287,748, which is a 13.1% rise from last year’s $254,447; but still lower than the ALP. In total, 461 condominiums in Ann Arbor have sold in 2018, versus the 535 units in the year prior, a 13.8% decline.

The condo specialists with The Bouma Group are capable of helping you with any and all of your condo needs, contact us at 888-581-6923 or email info@condohotline.com. Stay tuned for more information about the Ann Arbor condo market and surrounding areas!

Ann Arbor Condo Report – September 2018

Good News for Ann Arbor Condo Buyers, Selling Prices are Well Below Listing Prices

Listing prices are higher than last year, but luckily for those looking to buy an Ann Arbor condo, the selling price is at least 15% below the listing price! Asking prices are a significant 27.6% more than September 2017, $252,922 versus $322,848 currently. This may be because of the decrease in the amount of listings entered, from 60 condos to 52, which is a difference of 15.4%. Although the sale prices may seem unfortunate for condo sellers, there is some good news for them! 50 units sold this September, which means that almost as many units sold as were entered into the system. This is also an increase of 6.4% compared to the 47 condos sold in last September. Additionally, condos are on the market for less days, from 33 average days on the market to 24 currently. The average selling price is $233,240, which is a decrease of 8.9% compared to the ASP $255,912 in the previous September. Looking at year-to-date statistics, there has been a rise in the amount of condos entered into the multiple listings service but a decline in the amount of sales. From 611 units sold last year at this time to 629 units sold as of now, this is an increase of 21.3%. The average listing price has risen 19.5% to $347,344 so far this year, compared to $292,271. Thus far in 2018, 427 condos have been sold, which is a decline of 13.5% from the 494

condos sold last year at this time. The ASP has seen an increase of 14.3%, from $252,867 to $288,938 at the moment.

Whether you are looking to buy or sell an Ann Arbor condo, contact the condo specialists today at 888-581-6923 or email info@condohotline.com. Stay tuned for more updated market statistics!