Ann Arbor Condo Spring 2024 Market Update

Ann Arbor Condo Spring 2024

The Ann Arbor condo market is buzzing with activity as we advance into the Spring of 2024. The city, always evolving and dynamic, showcases its versatility in the real estate market. With a diverse range of available properties, from the most accessible to the pinnacle of luxury, there is movement across all segments.

Active listings sit at a substantial 80 condos. The market’s temperature can be further inferred from the 52 of these condos are already under contract, hinting at the high demand for living spaces in this vibrant city.

For those on the lookout for affordable options, Ann Arbor extends an inviting hand. Of the 25 condos listed under the $300,000 mark, a striking 80% are under contract—a clear message about the competitive nature of this price segment. The fact that the lowest-priced condo at $178,000 is also under contract is a testament to the allure of more reasonably priced homes, encouraging quick action from buyers.

The luxury market stands strong at the opposite end of the spectrum. A condo boasts the highest price tag at a whopping $1,950,000, setting a benchmark for the opulence available within Ann Arbor’s condo offerings.

New Construction Condos

New construction continues to play a significant role in Ann Arbor’s real estate narrative with 44 condos listed for sale. This marks an encouraging sign of growth, ensuring the market remains vibrant and caters to modern tastes and standards. Most remarkably, an overwhelming majority of these new properties—27 out of 44—are already under contract, a nod to their desirability and the city’s relentless appeal.

Sold Condos

So far this year, 111 condos have already sailed past the sold status. These units ranged from a more affordable $130,000 to a grand $1,400,000, indicative of the diverse buyers in the Ann Arbor market. For those eyeing the statistics, the average sale price sits at $411,611, with the average price per square foot rounding out at $301. These numbers aren’t just digits; they’re a benchmark of the value that Ann Arbor condos hold and a metric for prospective investors or homeowners to consider.

In summary, the Spring 2024 Ann Arbor condo market is lively and diverse. With a strong start to 2024, and the trend showing a weighted distribution towards seller advantage, now might be the perfect time to consider stepping into or moving up within this dynamic market. Whether you’re searching for affordability or opulence, Ann Arbor’s condos are opening their doors to meet you halfway. Contact us today for a curated list of units as soon as they hit the market at 734-761-3060 or info@condohotline.com.

Maximize Your Condo Sale with the Power of Home Equity

What is Home Equity and Why Does It Matter?

Key Points

• Understanding your home equity can be a game-changer when deciding to sell your condo or home, especially in today’s market of high mortgage rates.
• Nearly 70% of homeowners have significant equity, making it an opportune time to consider selling.
• Our expert real estate team is here to guide you through the process, offering free home value assessments and answering any questions.

 

Home equity is more than just a financial term; it’s your ticket to new opportunities. In simple terms, it is the difference between your home’s current market value and the remaining balance on your mortgage. But why should you care? Well, with today’s real estate market, understanding it can be a game-changer when you decide to move.

 

The Equity Boom: A Silver Lining in Today’s Market

 

You’re not alone if you’re hesitant to sell your condo due to high mortgage rates. However, there’s good news. According to data from ATTOM and the Census, nearly 68.7% of homeowners have either paid off their mortgages or have at least 50% equity in their homes. That’s right—almost 70% of homeowners are sitting on a goldmine of equity!

How Understanding Your Equity Can Ease the Selling Process

 

Knowing your home equity can remove a lot of the uncertainty around selling your condo or home. With significant equity, you’ll have more flexibility in choosing your next home, negotiating deals, and even covering moving expenses. And the best part? Our expert real estate team is here to guide you every step of the way.

Leveraging Equity: Your Hidden Asset

 

Understanding your home equity isn’t just about knowing numbers; it’s about leveraging this asset to your advantage. With our expertise, we can help you strategize on how to use your equity for a down payment on a new place, or even as a financial cushion for future investments. It’s not just about selling your condo or home; it’s about planning your financial future.

Take the Next Step: Unlock Your Home Equity Today

Ready to unlock the potential of your home equity? Don’t navigate this journey alone. Contact our expert real estate team today for a free home value assessment or with any questions you may have. Your future home awaits! 734-761-3060 or info@condohotline.com

Ann Arbor Condo Market Update – Fall 2023

Ann Arbor Condo Market Update for Fall 2023

The Fall 2023 condo real estate market is here and with it the hopes of a renewed increase in buyer activity. But first, let’s take a look at the statistics from the first half of the year.

Year-to-Date Condo Stats

Comparing statistics from the first half of 2022 to 2023 we’ve seen:

• New listings decreased by 16.8% going from 917 to 763 condos listed for sale YTD.
• Pending sales, the number of units that have gone under contract with a buyer, decreased 5.8% from 728 last year to 686 this year.
• 740 condos closed last year with 634 this year making a 14.3% decrease.
• Average sale price increased by 2.7% bringing it to $353,761.

April was the top listing month with 135 condos listed for sale and was also the busiest month for buyer activity with 146 pended units. June had the most closings with 114, which makes sense since it typically takes 30-45 days to close from the time of a bottom-lined offer. Due to the shrinking number of condos being listed for sale, the average sale price is continuing to increase because of a lack of availability. Prices will likely begin to stabilize once more inventory becomes available and that may not happen until mortgage interest rates cool off.

Downtown Ann Arbor Condos

In the downtown Ann Arbor area, there are currently 25 active listings, plus 10 pending with a buyer. So far this year, 71 condos have sold with an average sale price of $567,586. Compared to this time last year, there were 106 sales with an average sale price of $525,528. The number of closed sales decreased by 33% YTD and the average sale price increased by 8% following the trend of all Ann Arbor condos.

Fall 2023

The Ann Arbor condo market is beginning the fall season with 130 units listed for sale with 57 of those under contract. That leaves 69 condos available for a buyer to purchase. 38 of these are new construction with 14 under contract. Let’s take a look by price point:

With mortgage interest rates still climbing, affordability comes into play as you can see by the slower movement in the higher price points. Buyers need to remain vigilant in their search and be aware when new listings come to the market. Sellers, in higher price points especially, need a Realtor who knows their market niche and the inuendos of their community so they price accordingly. For more information on buying and selling in the Ann Arbor Condo market, contact the Real Estate specialists with The Bouma Group at 734-761-3060 or info@condohotline.com today!

Data was gathered from the Ann Arbor Area Board of Realtors

Buyer Activity Is Up Despite Higher Mortgage Rates

Showing Traffic Equals Buyer Activity

If you’re a homeowner thinking about making a move, you may wonder if it’s still a good time to sell your condo or house. Here’s the good news. Even with higher mortgage rates, buyer activity is actually picking up speed.

Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):

As the graph shows, the first two months of 2023 saw a noticeable increase in buyer traffic. That’s likely because the limited number of homes for sale kept shoppers looking for homes even during colder months.

To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (see graph below). It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory.

In the last six years, we saw the most February buyer traffic in 2021 and 2022 (shown in green above), but those years were highly unusual for the housing market. So, if we compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.

The uptick in buyer traffic is even more noteworthy considering the increase in mortgage rates this February. The Freddie Mac 30-year fixed mortgage rate rose from 6.09% during the week of February 2^nd to 6.50% in the week of February 23^rd. But even with higher rates, more buyers were looking for a home.

Jeff Tucker, Senior Economist at Zillow, says the increased buyer activity could continue:

“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”

If you’re looking to sell your condo or home, seeing buyers still active in the market this year should be encouraging. It’s a sign buyers are out there and could be looking for a place just like yours. Working with a real estate professional to list your condo or house now will help you get your home in front of eager buyers today.

Bottom Line

Rising foot traffic is a bright spot for this year’s housing market and indicates that buyers are looking to purchase this year, even with higher mortgage rates. If you’re ready to sell condo your house, let’s connect. Contact us at The Bouma Group, Realtors today at 734-761-3060 or info@condohotline.com.

Sellers Have an Opportunity with Today’s Home and Condo Prices

These 4 Negotiating Tips Can Help You Sell for Top Dollar

Receiving your first offer is one of the most exciting parts of selling your condo or home. And while it might seem like the hard work is finally over, the negotiation process is actually just getting started.

Even in a seller’s market, negotiating with a buyer can require quite a bit of time, skill, and guidance from your agent. However, with the right strategies, you can remain in the driver’s seat and maximize your profits.

Here’s How to Negotiate with Potential Buyers

When buyers submit an offer, they’re trying to get the best possible price, secure specific contingencies and financing, and close on their ideal timeline. As a seller, you’ll want to take their needs into consideration—but that doesn’t mean you have to give in to every concession.

Ready to hone your negotiation skills? Here are four easy tips to help you leverage a deal that gets you the price you want while keeping your buyer happy.

Review every offer with your agent

 

Even if you have some selling experience, it can be hard to decipher all the elements of an offer. Most offers are just a small part of a purchase and sale agreement, which includes everything from price to contingencies to deadlines, so it’s important to review every detail with your agent.

While it might be tempting to decline any offers below your asking price, you still want to consider the bigger picture. It may be worth sacrificing some equity for fewer contingencies or a cash deal. Your agent can guide you through the pros and cons of each offer, as well as answer any questions.

Don’t compromise on your must-haves

 

Fortunately, low inventory and rising prices have given sellers a distinct advantage in today’s market. That means you probably won’t have to give up a lot of your must-haves—like a certain price or closing date—to secure your sale.

While it’s okay to drive a hard bargain, you don’t want to appear unreasonable to buyers. In some situations, it’s common courtesy to agree to certain contingencies (such as a home inspection), offer credits for repairs, or even pay a portion of their closing costs.

Make a clear counteroffer

 

If you receive an offer that isn’t quite what you want, you have a few options. Most sellers choose to respond with a counteroffer, which proposes modified terms that are more beneficial to them.

The biggest factor to consider is price—if a buyer offers less than you’re willing to accept, try countering with a more realistic number. However, you’ll also want to take financing, contingencies, and timing into account. For example, you may want to ask a buyer for a different closing date or say no to excessive contingencies, as they can slow down the transaction. Ultimately, the ball is in your court, so it’s worth weighing different options with your agent.

Don’t be afraid to say no

 

Generally, you should always submit a counteroffer to every reasonable offer. However, if it becomes clear that a buyer isn’t willing to budge on your deal-breakers, don’t be afraid to say no. It’s also best to automatically decline any lowball offers that are around 30% less than your list price.

While it may seem counterintuitive to turn down an offer, it’s not worth negotiating with someone who isn’t serious about your condo or home. And because the market is extremely competitive right now, it probably won’t take long to find a buyer who’s willing to pay the right price.

Thinking of Selling Your Condo or Home Soon?

If you’re looking for the right agent to guide you through the negotiation process, we’d love to lend a helping hand! Get in touch with us today at 734-761-3060 or info@bouma.com to learn the ins and outs of selling your condo or home—we’re always on hand to answer any questions you might have.

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!

Make Buyers Fall in Love with Your Condo with These Easy Staging Tips

Love is in the air! We’re not talking about Valentine’s Day — we mean all of the buyers falling in love with your condo thanks to these easy staging tips. From simple DIY projects to decor and decluttering pointers, these effortless staging tips will wow the next buyers that step through your front door.

Clean, Clean, Clean

The single most important step for staging success? Clean. Break out those rubber gloves and scrub every corner, crack, and crevice that you can find. Not only will a clean condo convey to buyers that you take good care of your space, but it’ll also ensure less work and fewer problems when they move in.

The home-staging cleaning process is more than just regular vacuuming, dusting, mopping, and scrubbing; you’ll need to go the extra mile. We’re talking waxing the floors, deep cleaning the carpets, polishing all of the handles and doorknobs, and more. Make an extensive list, and devote a whole weekend to tidying up.

Tackle Any Unfinished Projects

Do you have a notoriously leaky faucet that you haven’t gotten around to fixing, or a stain on the floor that you’ve been covering with a rug? Now is the time to take care of it.

Take an inventory of any unfinished projects you’ve accumulated. Whether it’s repairing a lighting fixture or patching a hole in the wall, ticking off pending projects is critical in the staging process. The last thing a buyer wants is to inherit problems from a home that they could’ve avoided.

Try Small Scale DIY

You don’t have to completely remodel the kitchen or re-tile the bathroom to make your condo stick out to buyers. There are plenty of simple and affordable DIY projects, from decor improvements to easy upgrades and repairs, that’ll make your place pop!

Need some ideas to kickstart the process? Try putting a fresh coat of paint on the walls, replacing outdated lighting, upgrading cabinet handles and doorknobs, or de-popcorning your ceiling — just a few of the many easy ways to elevate your home’s look.

 

De-Personalize and De-Clutter

While decorating plays a big role in catching a buyer’s eye, there’s a fine line between standing out and overdoing it. While you might like your style of decorating, buyers could find it off-putting, so keeping it neutral is key. Using house plants and seasonal greenery is always a solid option for filling empty space!

While you’re putting up that new decor, you’ll want your space to be clutter-free and open. If you have any old couches, outdated decorations, or unnecessary accent pieces, take the opportunity to get rid of them before showings start.

List Your Condo with the Local Experts

From helping you get your DIY on to handling the complicated closing paperwork, our team is dedicated to helping you have a successful and stress-free real estate experience.

Are you ready to get started on your selling journey? Don’t hesitate to give The Bouma Group, Realtors, your local experts a call at 734-761-3060 or email info@bouma.com today!

Get Prepared to Spring Ahead of the Condo Competition!

Spring brings two things: more buyers & more sellers! Get prepared now to stand out in the crowd!

Whether you plan on buying or selling an Ann Arbor Condo, contact the real estate specialists with The Bouma Group to get the answers you need! 888-581-6923 or info@bouma.com.