A little late on the publishing this month, but here is the monthly post on the health of the Ann Arbor Area housing market.
From the BigHouseData.com Executive Summary:
Overall, the Washtenaw County Housing market is moving forward. The number of properties closed this year has not simply dried up. Rather, the appearance of so many properties on the active market makes it appear as though nothing is selling. While closings are down, year over year, it is not as precipitous a drop as many are led to believe through the news.
The convergence of price and quality are where properties in Washtenaw County are selling. Sellers are encouraged to put a sharp pencil to their list prices and give their properties the white glove treatment in getting their properties in show condition. A well-priced property in outstanding condition will cause buyers to jump at your property.
Of course, with the recommendation of a great list price and excellent showing condition, sellers also need an excellent marketing system to expose their properties to the buyers currently in the market. Team366’s Professional Marketing System ensures that buyers know about your property before they leave their home office! Your home can be found 24/7 in a variety of websites, in addition to the usual sites real estate agents market their properties (Realtor.com, their own website, their broker’s website).
Average List Price – October 2007
The average list price of a condo or home listed in the month of October was $240,905. This represents a nearly 7% decrease in price, compared to October 2006. Year to date, the list price is down 3.5% compared to the same ten months in 2006.
This drop in average list price, as you can see from the trend-line, has increased in momentum since about the time the Pfizer relocation homes began to hit the market, February/March and forward. While many of decried the pullout of Pfizer from the area, the mass relocation of their employees taught our local housing market what it takes to sell properties in this market: Price!
Average Sales Price – October 2007
With an average sales price of $214,439 in October 2007, this represents an over 8% drop in sales price compared to October 2006. Year to date, the average sales price in Washtenaw County is down over 6% compared to the same ten months of 2006. What this means is that a home that was purchased for $200,000 last year, if it were to be purchased this year, would be worth $188,000, on average.
Number of Listings v Number of Closings – October 2007
If you are a listing agent in Washtenaw County, you have had a great time listing homes with a nearly 25% increase in the number of listings compared to last year. On the other hand, with closings down over 11% from last year, this means a lot of inventory is simply stagnating on the market.