Any Slowdown in Ann Arbor Area Real Estate?
How is the Housing Market Doing as of September 2022?
“The Sky Isn’t Falling.”
What The Media is Telling Us
There is a lot of negative news about the economy and the housing market.
We hear inflation is making real estate unaffordable.
We hear rising interest rates are also making real estate unaffordable and prices will have to come down because buyers can’t afford the new payment.
We hear a recession is coming and demand for real estate will slow.
Is this really what we see happening locally?
What is the Reality for the Ann Arbor Area Real Estate Market as of September 2022?
Let’s look at 7 housing market indicators looked at broadly across the entire MLS for the largest possible data sample.
1. Months Supply of Homes For Sale- Going all the way back to 2019, the months supply of homes has trended down through September 2022 to 2.8 months supply of homes. For the record, a four to six month supply of homes is considered healthy.
Source-Ann Arbor Area Board of Realtors
2. Number of Homes for Sale- Related to the months supply of homes, the number of homes for sale has trended down from 2019 to September 2022.
Source-Ann Arbor Area Board of Realtors
The question to ask yourself is how many new sellers are going to list their house for sale if they don’t have to if they have a low interest rate locked in on their mortgage?
3. New Listings- As you might expect, the number of new listings has also trended down since 2019.
Source-Ann Arbor Area Board of Realtors
4. Days on Market- Because of the low inventory, the number of days on market, on average, has been low with just a slight increase in September 2022.
Source-Ann Arbor Area Board of Realtors
5. Percent of List Price Received With Offer- As a result of the low inventory of homes for sale, the percent of list price received with offer is 100% or more on average.
Source-Ann Arbor Area Board of Realtors
6. Number of Showings Until Pending- The number of showings until the property goes pending is down 18% as of September 2022.
Source-Ann Arbor Area Board of Realtors
7. Average Sale Price- With the continued strength in real estate activity, coupled with inflation, the average sales price is up 9% in September of 2022.
Source-Ann Arbor Area Board of Realtors
“The challenge in any market is to know value, current market conditions, and where the opportunities lie.”
How Can a Real Estate Professional Help In Any Market?
The challenge in any market is to know value, current market conditions, and where the opportunities lie.
A real estate professional will be active in the market working with other professionals to stay informed and understand the current market conditions.
This will help you identify opportunities and know the value when you see it working with them.
Why Real Estate is Local
Just because the media is telling us that inflation, interest rates, and a recession are going to slow real estate sales and prices are going to drop like a rock does not mean that is the reality in the marketplace locally.
In fact, all the market indicators show that demand for housing is still strong and there are not enough housing units available to meet the demand.
Where will the new listings come from when so many people have locked in low interest rates on their mortgage?
All of this is likely to continue to put upward pressure on prices locally.
To your success!
Arbor Advising has a passion for helping people buy, sell and invest in real estate. We believe real estate is the best way to create passive income, grow your wealth and provide inflation adjusted returns in retirement with fantastic tax benefits.
Want to learn more? Contact us.
Disclaimer:
Always speak to your CPA, investment advisor and attorney before making any investment decisions. Past performance does not guarantee future returns. Arbor Advising seeks to educate and does not endorse any specific product, service or investment.
