Ann Arbor Condo Sales: H1 2026 Market Highlights
Quick answer: Ann Arbor’s condo market saw 282 sales in the first half of 2026, with prices ranging from $140,000 to $2,438,254. The average sale price came in at $441,625, while the median settled at $335,000. Condos that sold within 30 days averaged 99.74% of their original list price, reflecting strong demand across the market.
The Ann Arbor condo market delivered a wide range of opportunities in the first half of 2026. We saw compact, affordable units to stunning downtown residences that rival the finest homes in the area. Whether you’re a first-time buyer searching for an entry point into the market or a seasoned investor eyeing a luxury property, understanding how the market performed across all price points gives you a meaningful edge.
This post breaks down the H1 2026 Ann Arbor condo market by spotlighting the least expensive, median, average, and most expensive condos sold. We’ll also unpack the numbers behind days on market, sale-to-list price ratios, new construction trends, and resale activity—so you walk away with a clear, data-backed picture of where the market stands right now.
The Bouma Group tracked every detail of these 282 transactions closely, having listed 14 and sold 15 of these condos ourselves. Here’s what the data tells us.
The Least Expensive Condo Sold in Ann Arbor: 4214 Packard St #2
Photo courtesy of the MLS
At $140,000, 4214 Packard St #2 in the Arbor Heights complex represents the most affordable entry point into Ann Arbor condo ownership during the first half of 2026. This 591-square-foot, 1-bedroom, 1-bathroom unit proves that owning in Ann Arbor doesn’t have to be out of reach.
Compact and efficiently designed, this type of unit typically attracts first-time buyers, students, and investors looking to build equity or generate rental income in a city consistently ranked among the best places to live in Michigan. At just under $237 per square foot, it’s a reminder that value still exists in this market.
The Median-Priced Condo Sold in Ann Arbor: 531 Liberty Pointe Drive
The median sale price of $335,000 is represented by 531 Liberty Pointe Drive in the Liberty Pointe community. This townhouse-style condo that sold right at the midpoint of the H1 2026 market. With 1,378 square feet on the main levels plus an additional 626 square feet of finished lower level, this 2-bedroom, 3 full bath + 1 half bath home offers space and flexibility.
This property was listed by The Bouma Group, and its sale at the median price reflects our team’s deep familiarity with pricing strategy and market positioning across Ann Arbor’s condo segment.
Townhouse-style condos like this one are especially popular with buyers who want the feel of a single-family home with a private entry, multiple levels, more square footage, without the maintenance responsibilities that come with owning a stand-alone property. At $335,000, this sale lands squarely in the heart of Ann Arbor’s condo demand.
The Average-Priced Condo Sold in Ann Arbor: 431 S. 7th St
Photo courtesy of the MLS
The average sale price for H1 2026 is represented by 431 S. 7th St. Like the median property, this is a townhouse-style unit. It offers 1,056 square feet of living space plus 454 square feet in the finished lower level. It featured 3 bedrooms, 1.5 bathrooms, and an attached garage.
The gap between the median ($335,000) and the average ($441,625) is worth noting. It signals that higher-priced sales, particularly in luxury and new construction, are pulling the average upward. We consistently see this in the Ann Arbor condo market, where a cluster of premium transactions at the top end of the market has an outsized effect on the mean.
Understanding this distinction helps buyers and sellers alike interpret market data more accurately. The median often tells a more grounded story about typical buyer activity.
The Highest-Priced Condo Sold in Ann Arbor: 303 Detroit St #402
The standout transaction of the first half of 2026 was 303 Detroit St #402, which closed at $2,438,254. It was the highest condo sale price in Ann Arbor during the first half of 2026.
Located in the heart of the Kerrytown district, this 2,635-square-foot residence features 4 bedrooms and 4 bathrooms, and has been described as an exceptional unit with numerous custom finishes and upgrades. Kerrytown is one of downtown Ann Arbor’s most sought-after neighborhoods, offering walkable access to the Ann Arbor Farmers Market, boutique shops, acclaimed restaurants, and the broader downtown core.
At just over $925 per square foot, this sale is a benchmark for Ann Arbor’s luxury condo market. It shoes that demand at the top end of the market remains robust and that buyers are willing to pay a significant premium for location, quality, and craftsmanship.
Ann Arbor Condo Market Statistics: Days on Market and Sale-to-List Price Breakdown
The average of 44 days on market across all 282 sales requires some important context. New construction condos, which typically carry longer marketing timelines due to pre-sale and build phases, skew this figure higher. When you remove new construction from the equation, resale condos averaged just 38 days on market.
The sale-to-list price data tells an equally compelling story about the relationship between timing and pricing power:
- 0–30 days on market: 180 sales at an average of 99.74% of original list price
- 31–60 days on market: 33 sales at an average of 95.89%
- 61–90 days on market: 25 sales at an average of 95.41%
- 91–120 days on market: 20 sales at an average of 93.32%
- 121+ days on market: 24 sales at an average of 93.22%
The takeaway is clear: condos priced accurately from the start sell quickly and close near full price. Properties that linger on the market see meaningful price concessions which sometimes exceeded 6% off the original list price. For sellers, precision pricing at the beginning is necessary. For buyers, extended market time can signal negotiating room.
How Did Ann Arbor’s Luxury Condo Market Perform?
Sixteen condos sold for over $1,000,000 in the first half of 2026, confirming that Ann Arbor’s luxury condo segment is an active and established part of the market.
Of the 20 new construction condos that sold during this period, 10 were priced over $1 million. New construction sales naturally carry longer days-on-market figures. Pre-sale timelines, construction completion schedules, and buyer decision cycles all extend the process. This is the primary reason the overall average DOM is higher than the resale market experience would suggest.
Buyers pursuing new construction should anticipate this extended timeline and factor it into their planning. For those comparing new construction to resale, it’s also worth evaluating the total cost of customizations and finishes, which can add significantly to the final sale price, as seen with 303 Detroit St #402.
Resale Condo Market Insights for Ann Arbor
The resale segment accounted for 213 of the 282 total condo sales in H1 2026. With an average DOM of just 38 days, resale condos moved efficiently through the market, a reflection of steady buyer demand and relatively constrained inventory.
Resale buyers benefit from the ability to see a finished, occupied product, often with established HOA track records and known maintenance histories. For sellers in the resale market, the data reinforces the value of strategic pricing and preparation. The condos that sold fastest and closest to asking price were those that entered the market priced competitively from day one.
Across the board, the resale market showed healthy activity, which speaks to Ann Arbor’s unique position as a stable, high-demand real estate market anchored by the University of Michigan and a strong employment base.
What the H1 2026 Data Means for Ann Arbor Condo Buyers and Sellers
The first half of 2026 reinforced several patterns that both buyers and sellers should factor into their strategies.
For buyers: Speed matters. The majority of condos that sold in 30 days or fewer went for essentially full asking price. Buyers who are pre-approved, decisive, and working with experienced local agents are consistently better positioned to compete. Waiting for price reductions is a valid strategy for properties that have been sitting, but the best units rarely sit.
For sellers: An accurate list pricing is the most powerful tool at your disposal. Condos priced right sell fast and for close to full price. Those that miss the mark early lose momentum and ultimately net less.
For the market overall: With 282 sales, 16 luxury transactions, and a resale market averaging 38 days on market, Ann Arbor’s condo segment is performing with consistency and depth. The price range $140,000 to $2,438,254 reflects a market that serves diverse buyer profiles, from first-time purchasers to high-net-worth buyers seeking premium downtown residences.
Ready to Buy or Sell an Ann Arbor Condo? Contact The Bouma Group
The Bouma Group listed 14 and sold 15 of the condos that transacted in the Ann Arbor market during H1 2026. That level of involvement isn’t coincidental, it’s the result of years of focused expertise, an extensive buyer network, and a deep understanding of how Ann Arbor’s condo market operates at every price point.
If you’re thinking about buying or selling a condo in Ann Arbor, we’d love to put that expertise to work for you. Reach out to The Bouma Group today to discuss current market conditions, available listings, and how we can help you make the most of your next move.
📞 734-761-3060
🌐 www.bouma.com
📧 info@bouma.com
Ann Arbor Condo Market Review 2025: Sales & Statistics
2025 has been another dynamic year for real estate in Tree Town! The Ann Arbor condo market displayed incredible variety, offering everything from efficient starter units to luxurious downtown penthouses. Whether you are a first-time buyer looking to put down roots or a seasoned investor seeking a luxury property, the 2025 numbers tell a compelling story of a vibrant and active community.
We saw a total of 565 condos sold throughout the year, with properties moving at a brisk pace. If you are curious about what your money could buy in 2025, or simply love keeping a pulse on local real estate trends, we have broken down the defining sales of the year. Let’s dive into the specifics of the lowest, median, average, and highest-priced condos sold in Ann Arbor.
A Look at the Extremes: Highs and Lows
The range of options in Ann Arbor is vast. To illustrate the full spectrum of our local market, let’s examine the entry-level options alongside the absolute peak of luxury living.
Lowest Priced Sale: Value at Independence Condos
Affordability is still possible in Ann Arbor if you know where to look. The lowest-priced sale of the year was located at 2411 Packard St 51E within the Independence Condos community.
This unit offered a great entry point into homeownership:
- Sold Price: $103,500 (Listed at $115,000)
- Size: 896 square feet
- Layout: 2 bedrooms, 1 bathroom
- Speed: Sold in just 4 days
Despite the lower price point, this condo moved incredibly fast, spending less than a week on the market. It proves that well-priced inventory at any level attracts immediate attention from buyers.
Highest Priced Sale: Luxury at N Fourth Condos
On the other end of the spectrum, we saw stunning luxury sales. The crown jewel of 2025 was 401 N 4th Avenue, a magnificent residence at N Fourth Condos right in the heart of Downtown Ann Arbor.
This property commanded a premium price for its prime Kerrytown location and expansive layout:
- Sold Price: $2,150,000 (Sold significantly over the $1,985,000 list price)
- Size: 2,543 square feet
- Layout: 2 bedrooms, 2.5 bathrooms
- Speed: Sold in just 7 days
The fact that this unit sold for $165,000 over the asking price in just one week highlights the intense demand for high-end, downtown living spaces.
The Market Core: Median and Average Sales
While the extremes grab headlines, most activity happens in the middle. Here is a look at the properties that represented the “typical” Ann Arbor condo transaction in 2025.
Median Priced Sale: Weatherstone Condos
The median price represents the exact middle of the market. For 2025, the median sale was 1659 Coburn Drive at the popular Weatherstone Condos. We were proud to list this property at The Bouma Group!
This sale perfectly represents the quality available at the mid-market range:
- Sold Price: $349,000 (Full asking price)
- Size: 1,342 square feet
- Layout: 2 bedrooms, 2 bathrooms
- Speed: Sold in 8 days
With a sale time of just over a week at full price, this transaction underscores the stability and desirability of established communities like Weatherstone.
Average Priced Sale: The Arbors
The average price for the year was the sale of 4350 Pine Ridge Court at The Arbors. The Bouma Group had the pleasure of representing the buyer for this transaction.
This property offered generous space and comfort:
- Sold Price: $414,500 (Listed at $424,900)
- Size: 1,786 square feet
- Layout: 3 bedrooms, 2.5 bathrooms
- Speed: Sold in 16 days
This sale highlights a slightly larger footprint than the median, offering buyers nearly 1,800 square feet and three bedrooms for just over $400k.
2025 Market by the Numbers
Beyond specific properties, the broader statistics give us a clear view of market health. In 2025, the average “Days on Market” (DOM) for all 565 sales was just 33 days. This indicates a seller’s market where buyers need to act decisively.
How Fast Did Homes Sell?
Speed was the name of the game for the vast majority of listings. Here is the breakdown of how long condos stayed on the market:
- 0-30 Days: 384 sales
- 31-60 Days: 93 sales
- 61-90 Days: 42 sales
- 91-120 Days: 13 sales
- 121+ Days: 33 sales
With 384 out of 565 units selling in the first month, preparation is key. Buyers who are pre-approved and ready to write offers have a distinct advantage.
New Construction and Luxury Trends
New developments continue to shape our skyline and neighborhoods. There were 31 new construction condos sold this year. These units had a longer average market time of 114 days, which is typical for new builds where sales often occur before construction is complete.
The luxury sector also showed strength. A total of 16 condos sold for over $1 million, and notably, 4 of those were new construction projects. This data suggests a growing appetite for premium, modern amenities in the Ann Arbor area.
Work with the Ann Arbor Condo Specialists
Navigating a condo market that ranges from $100k to over $2M requires local expertise and a deep understanding of neighborhood nuances. Whether you are looking to sell your current condo for top dollar or find the perfect new home in a competitive landscape, we are here to guide you.
At The Bouma Group, Realtors, we know the buildings, the bylaws, and the buyers. Let us put our experience to work for you!
Contact us today to start your journey.
Call 734-761-3060 or email info@bouma.com
Downtown Ann Arbor Condo Market: Q3 2025 Review
The vibrant heart of Ann Arbor is its downtown, and the condo market here has a rhythm all its own. As we look back on the third quarter of 2025, the data paints a clear picture of a dynamic and desirable market. For nearly 40 years, The Bouma Group has kept its finger on the pulse of this unique real estate landscape. Our deep-rooted knowledge allows us to offer unmatched insights, and we’re excited to share what we’ve seen from July through September.
For anyone considering buying or selling a downtown condo, understanding these trends is the first step toward making a smart, confident decision. Let’s dive into the numbers and explore what they mean for you.
Q3 2025 Downtown Condo Market by the Numbers
The third quarter showed steady activity, reflecting continued demand for the downtown lifestyle. A total of 17 condos were sold, showcasing a healthy turnover of properties. The market catered to a wide range of buyers, from those seeking cozy urban nests to those investing in luxurious, high-end residences.
Here’s a snapshot of the key statistics:
- Average Sale Price: $611,223
- Median Sale Price: $552,500
- Average Days on Market: 46
The average of 46 days on market indicates that well-priced and well-marketed properties moved efficiently. Buyers were decisive, but not frantic, creating a balanced environment for transactions. The relationship between the average and median sale prices suggests that while the luxury market is strong, the core of the market remains robust and accessible.
Market Highlights: Highs and Lows
The diversity of the downtown market was on full display this quarter. The highest-priced sale was a stunning unit at The Gallery, closing at an impressive $1,250,000. This sale highlights the strong appetite for premium, modern living with high-end finishes and amenities that premier buildings like The Gallery provide.
On the other end of the spectrum, the lowest-priced sale was at Tower Plaza for $284,900. This demonstrates that the dream of living downtown is attainable at various price points. Tower Plaza continues to be a popular choice for those wanting a prime location and a manageable footprint.
The Luxury Segment Shines
The luxury condo market showed significant strength in Q3. A total of three condos sold for over $1 million. This is a powerful indicator of the value buyers place on downtown Ann Arbor’s sophisticated urban lifestyle. These sales, including the top sale at The Gallery, underscore the demand for properties that offer exceptional quality, space, and location. As experts in this niche, The Bouma Group understands the nuances of marketing and negotiating these high-value properties to achieve outstanding results for our clients.
Hot Spots: Where are Condos Selling?
Certain buildings consistently capture buyer attention, and this quarter was no exception. Several key complexes saw multiple sales, pointing to their enduring appeal.
Ashley Terrace: A Center of Activity
With three sales in Q3, Ashley Terrace was one of the quarter’s most active buildings. Its central location, modern design, and mix of unit sizes make it a perennial favorite. Buyers are drawn to its convenience and the quality of life it offers, just steps from Main Street’s dining and shopping.
Ashley Mews, Nielsen Square, and Tower Plaza
Other notable buildings also saw significant activity. Ashley Mews and Nielsen Square each recorded two sales. Ashley Mews is beloved for its elegant, townhome-style living, offering a bit more privacy and space while still being in the middle of it all. Nielsen Square, situated in the charming Kerrytown district, appeals to those who love the area’s unique character and proximity to the farmers market.
Tower Plaza also saw two sales, reinforcing its position as a go-to for buyers seeking value and an unbeatable location adjacent to the University of Michigan’s campus.
Your Downtown Ann Arbor Condo Experts
For nearly four decades, The Bouma Group has been the definitive source for downtown Ann Arbor real estate. Our market knowledge isn’t just about data; it’s about understanding the story behind the numbers. We know the unique personality of each building, the history of sales, and how to position our clients for success. Whether you’re buying your first condo or selling a multi-million dollar penthouse, we’ve got you covered.
Navigating this competitive market requires more than just access to listings. It requires expertise, strategy, and a trusted partner who has seen it all. Our team is dedicated to providing that level of service. We want to ensure that you feel confident and empowered throughout your real estate journey.
Are you thinking about making a move in the downtown Ann Arbor condo market? Whether you’re curious about your condo’s current value or looking to find the perfect new home, we’re here to help you make it happen.
Contact The Bouma Group, Realtors today at 734-761-3060 or email us at info@bouma.com to start the conversation. Let our expertise be your advantage.
Ann Arbor Condo Market Update – Fall 2024
A Deep Dive into Ann Arbor Condo Market Trends in 2024
Ann Arbor’s condo market is bustling with activity as we move through 2024. In the first three quarters alone, the data shows interesting patterns and trends that both current condo owners and potential buyers should consider. Here’s a detailed look at what you need to know.
Overview of the Ann Arbor Condo Market
- New Listings: 604 new listings have been recorded, representing a modest increase of 1.7% compared to the same period last year.
- Pending Sales: There have been 482 pending sales, showing a slight dip of 1%.
- Closed Sales: 470, marking a decrease of 2.5%.
- Days on Market: Condos are selling faster, with an average of just 35 days on the market, an impressive drop of 35%.
Pricing Trends
- Median Sales Price: The median sales price has increased by 13%, now standing at $356,000.
- Average Sales Price: This year, the average sales price has risen to $416,563, which is a 7% increase.
- Percent of List Price Received: Sellers are receiving on average 100.8% of their asking prices, a slight decrease of 0.5%.
Downtown Ann Arbor Condo Market
- Currently Active: There are 36 active listings in downtown Ann Arbor.
- Pending Listings: 26 condos are currently under contract.
- Sales Activity: There have been 77 closed sales. Notably, seven of these sales have been over $1,000,000, including four new construction units.
- Affordable Options: For those seeking more affordable options, 30 units sold under $300,000, predominantly located in Tower Plaza.
- Median and Average Sales Prices: The median sales price is $451,000, and the average sales price is $534,562.
Spotlight on Notable Sales
Most Expensive Condo Sold
101 N. Main St. #906, Downtown Ann Arbor
One North Main Condos
2,316 square feet with 3 bedrooms and 2 baths
Listed for $1,195,000
Sold for $1,625,000
13 days on market
The top-tier properties in Ann Arbor’s market continue to command significant attention. One of the most expensive condos sold this year was a luxurious unit in the heart of downtown, fetching well over $1,000,000 and showcasing the continued demand for high-end urban living.
Average Condo Sale
111 N. Ashley St. #604, Downtown Ann Arbor
Ashley Terrace Condos
863 square feet with 1 bedroom and 1 bath
Listed for $439,900
Sold for $420,000
27 days on market
The average condo sale in Ann Arbor reflects the broader trends of increasing prices, with typical units selling at around $416,563. These average-priced condos often offer a balanced mix of location, amenities, and value, making them appealing to a wide range of buyers.
Least Expensive Condo Sold
555 E. William St. #5L, Downtown Ann Arbor
Tower Plaza
430 square feet, studio with 1 full bath
Listed for $185,000
Sold for $185,000
1 Day on Market
At the other end of the spectrum, some of the least expensive condos, particularly in areas like Tower Plaza, provide affordable entry points into the Ann Arbor real estate market. These units, selling for under $300,000, offer great opportunities for first-time buyers or those looking for investment properties.
Key Takeaways for Buyers and Sellers
For buyers, the Ann Arbor condo market remains competitive, but opportunities exist across various price points. It’s essential to move quickly, given the reduced days on market. Sellers, meanwhile, can take advantage of the appreciating prices and quick sales, although it’s important to price realistically to ensure swift transactions.
Whether you’re considering buying or selling a condo in Ann Arbor, understanding these trends can help you make informed decisions. Stay tuned for more updates as the year progresses, and don’t hesitate to reach out if you’re ready to explore the Ann Arbor condo market further. Contact us today at The Bouma Group at 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 2nd to 6.50% in the week of February 23rd. 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.
3 Graphs To Show This Isn’t a Housing Bubble
With all the headlines and buzz in the media, some consumers believe the market is in a housing bubble. As the housing market shifts, you may be wondering what’ll happen next. It’s only natural for concerns to creep in that it could be a repeat of what took place in 2008. The good news is, there’s concrete data to show why this is nothing like the last time.
There’s a Shortage of Homes on the Market Today, Not a Surplus
The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.
For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to tumble. Today, supply is growing, but there’s still a shortage of inventory available.
The graph below uses data from the National Association of Realtors (NAR) to show how this time compares to the crash. Today, unsold inventory sits at just a 3.0-months supply at the current sales pace.
One of the reasons inventory is still low is because of sustained underbuilding. When you couple that with ongoing buyer demand as millennials age into their peak homebuying years, it continues to put upward pressure on home prices. That limited supply compared to buyer demand is why experts forecast home prices won’t fall this time.
Mortgage Standards Were Much More Relaxed During the Crash
During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. The graph below showcases data on the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA). The higher the number, the easier it is to get a mortgage.
Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.
Today, things are different, and purchasers face much higher standards from mortgage companies. Mark Fleming, Chief Economist at First American, says:
“Credit standards tightened in recent months due to increasing economic uncertainty and monetary policy tightening.”
Stricter standards, like there are today, help prevent a risk of a rash of foreclosures like there was last time.
The Foreclosure Volume Is Nothing Like It Was During the Crash
The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been on the way down since the crash because buyers today are more qualified and less likely to default on their loans. The graph below uses data from ATTOM Data Solutions to help tell the story:
In addition, homeowners today are equity rich, not tapped out. In the run-up to the housing bubble, some homeowners were using their homes as personal ATMs. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a wave of distressed property listings (foreclosures and short sales), which sold at considerable discounts that lowered the value of other homes in the area.
Today, prices have risen nicely over the last few years, and that’s given homeowners an equity boost. According to Black Knight:
“In total, mortgage holders gained $2.8 trillion in tappable equity over the past 12 months – a 34% increase that equates to more than $207,000 in equity available per borrower. . . .”
With the average home equity now standing at $207,000, homeowners are in a completely different position this time.
Bottom Line
If you’re worried we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your concerns. Concrete data and expert insights clearly show why this is nothing like the last time. We study the real estate market every single day, so give us a call today at 734-761-3060 to talk about your particular condo or home buying or selling goals in today’s market at 734-761-3060 or email info@condohotline.com.
Ann Arbor Condo Report – July 2021
Listings Remain Hot with a Decline in Inventory
For the first time in a few months, there has been a decrease in the amount of new inventory added to the Ann Arbor condo market; 89 units were listed, and this was a 19.8% difference from the 111 last July. Sellers will be pleased to know that closed sales remained stable at 81. As well, the average days on the market declined by 21.9% to 25 days. The average sale price increased to $323,523 versus $262,273 previously, a 23.4% rise.
As for the year-to-date numbers, they also demonstrated an increase. There has been 690 condos listed for sale this year, which is a 12.2% rise from the 615 in 2020 bat this time. A total of 582 units have been sold versus the 383 last year, a considerable 33.9% increase. Currently, the cumulative ASP increased 19.5% from $273,613 to $327,059 now.
If you are interested in learning more about Ann Arbor condos, contact the experts with The Bouma Group at 734-761-3060 or email info@condohotline.com. Browse more Ann Arbor listings here!
Ann Arbor Condo Report – June 2021
Sale Prices Continue to Climb
Two things moved up this past month for Ann Arbor condos, new inventory and the average sale price. June saw a total of 125 new condos added to the market, a 27.6% change from the 98 the previous June. There was a very minimal decline in the amount of sold units with 94 closed; however, sellers will be happy to know that the average sale price increased a significant 49.2% from $267,799 to $399,438 recently. As well, the average days on the market declined to 29 days, versus the 49 before.
Besides the total number of sales so far this year, the year-to-date statistics followed similar trends to the monthly statistics. The new listings rose by 19.2%; in 2020 at this time, 504 condos had been listed, whereas this year the number was at 601. Due to a high volume of sold condos earlier this year, the amount of sold inventory continued to increase from 302 to 425, which was a 40.7% rise. As for the ASP, it increased 18.8% to $328,783 in comparison to the prior ASP of $276,654.
To learn more about the Ann Arbor condo market and how it could affect you, contact the condo specialists with The Bouma Group at 734-761-3060 or email info@condohotline.com. Discover more Ann Arbor condos here!
Ann Arbor Condo Report – May 2021
A Significant Increase in Sold Ann Arbor Condos
Although the amount of added inventory for Ann Arbor condominiums is starting to cool, sales are going full steam ahead. There was a 5.3% increase for new listings from 113 last May to 119 recently. Sold condos on the other hand jumped from 35 to 77, a considerable 120%. The average sale price for these condos was $333,663, demonstrating a 12.3% rise in comparison to the ASP of $297,223 prior. One caveat to the seller’s good news is that the average days on the market has increased by 11.8% to 38 days. At the moment, there are 124 listings on the market, a 45.6% decline from the previous May.
Looking at the year-to-date numbers, we see similar trends to the monthly statistics except they tend to be milder overall. A total of 476 condos have been entered into the multiple listings service, which is a 17.2% rise from the 406 before. There was a 59.4% increase for closed sales so far this year, 207 versus 330 in 2021. In comparison to the ASP of $280,718 before, the current ASP increased 9.8% to $308,320.
If you are curious about Ann Arbor condos, contact the specialists with The Bouma Group at 734-761-3060 or email info@condohotline.com. Discover more Ann Arbor condos here!