When Pfizer Leaves Town
ouch!
In case you missed the announcement, the pain for SE Michigan and SW Michigan, continues with Pfizer closing its facilities in Ann Arbor and Kalamazoo.
2,100 jobs gone by the end of 2008. Not only are those 2,100 jobs lost for the Ann Arbor area, that’s the City of Ann Arbor’s largest single taxpayer, largest single private employer, and, likely, the city’s largest charitable contributer.
wow
So, 2,100 Pfizer jobs: Gone. With the jobs multiplier for the Ann Arbor area somewhere North of 2.5, we are talking of at least 5,250 jobs gone.
With 70% of the 2,100 employees being relocated, that means nearly 1,500 residences could hit the market in the next 18 months. Did I mention that our listings were up nearly 8.5% for 2006 compared to 2005? 1,500 new listings in the Ann Arbor area means a nearly 10% increase in listings as there were 14,720 condo and residential listings in Washtenaw County.
Will the last person to leave Michigan please turn the light off?
Is it too early for that phrase to be pulled off the heap?
Technorati tags: Michigan Real Estate, Ann Arbor, Pfizer, Jobs, Seller Insights, Buyer Insights, Investors
love your page, thanks for taking the time.
very sorry to hear about pfizer. my company has development there that will be impacted too (ashley terrace).
we’re tough in michigan, but how much more can we take, ya think?
Great page, Todd! Just found it.
It’s interesting to compare the Google in, Pfizer out scenario (we should also at Toyota Tech Center in), at least in the Ann Arbor area. What I don’t know, and this is from someone who’s considering selling up from “out county” and moving into the city, is how much these Ann Arbor employer changes affect the outlying market. Any idea?
kris,
Thanks for stopping by!
What affect this will have on the economy, we can make rational guesses at. The fact remains that the bottom of the market is in sight. And that means that as a state, we will be ahead of the rest of the nation by nearly one year. Investor activity, anecdotally, is picking up. They are looking to maximize their returns when the market picks up and buyers should too.
What kind of impact do you see on Ashley Terrace as a result of this? Anything immediately noticeable?
faith,
Great question about the impact of “out-county” housing that the Ann Arbor employment shifts will have.
With a rough increase in the number of listings by 10%, the County housing market will likely slow down. That means 10% more houses for buyers to wade through, 10% more houses for sellers to compete with.
As a buyer of property within Ann Arbor, your dollar will purchase more property. As an out-county seller, you want to sell sooner rather than later to beat out the influx of Pfizer homes.
Understand, well-priced homes, exuding quality, will sell. And while the sales price on your home may not be what you want it to be, you will be able to extend those same dollars just a little bit further when you purchase in Ann Arbor.
With regards to the Toyota Tech Center, that will have a nice impact on our housing market, but it will likely have a greater impact on Milan, Pittsfield, and maybe Lincoln/South Ypsi. Twp than Ann Arbor itself.
Have you availed yourself of my monthly and quarterly stats? You can find them, currently, on the front page. Do not hesitate to email me directly. I would be honored to assist! todd[at]toddwaller[dot]com.