Michigan is in a very volatile market and I will discuss what is happening in the Ann Arbor real estate market through 4 trend charts and our mls report from The Ann Arbor Area Board of Realtors.
The first chart shows residual inventory has shrunk slightly, new listings are up 2.8 percent and homes under contract are up about 13 percent from last May. We have more sale contracts falling apart so when I hear about National Association of REALTORS® report of increased homes under contract, I shrug it off. Mortgage underwriting guidelines are so stiff I cannot begin to tell you the horror stories I am living through with lenders.

Download the full report, click here.

The next chart shows the Months supply of inventory has ranged from 5.1 to 12 months in the winter. Last May there were 6 months of supply. This indicates a buyers market is still evident. Notice the trend line; the months supply are trending up.

Download the full report, click here.

Inventory units have declined slightly (2 percent) from May 08 to May 09. Units sold are down by 26 percent and under contract are up by 13 percent.

Download the full report, click here.

Finally, the last chart shows Median prices have declined over the last 12 months and the median listed prices have remained stable. Until that gap narrows, we will still be in a buyers market.

Download the full report, click here.

For Washtenaw County, the year to date units sold were 1074 in 08 vs. 1001 in 09 from table insert below. The volume change year over year went from $232,931,457 to $171,143,697. Downward price pressure comes from continued real estate owned bank properties and short sales. The median sales price declined year over year from $187,400 to $135,000. The average sales price went from $216,882 in 08 down to $170,973 in 09.

Interest rates remain in the five percent range for now. The buyer credit is helping spur some first time buyers into the market and it is still a great time to buy.

Federal Reserve released their Beige Book. It’s their report based on observations and comments from business insiders on the state of the economy.

Regarding comments in the report for Real Estate and Construction citing real estate market remains weak, agents in the New York, Philadelphia, Cleveland, Richmond, Chicago, Kansas City, Dallas, and San Francisco Districts reported an increase in home sales. The reasons cited include seasonal factors, low interest rates, declining house prices, and tax credits for first-time buyers. Much of the sales increase was found in the lower-priced end of the market……

1. It’s no surprise that declining house prices are improving home sales. There are so many steals to be had, this is fueling our market.
2. Tax credits for first time home buyers expire December 1, 2009. If you are a first time buyer and haven’t at least started thinking about buying a home or at least talking to a lender about getting preapproved and starting to look for a house. We are seeing many of these buyers writing offers.
3. Interest rates are cited as one of the factors that are encouraging residential sales during this period. What will be a very telling is what effect the bump in interest rates will have on purchases. First time home buyers won’t be affected as much as the trade up buyers looking at moving up who might find it more expensive if the rates rise.

The average sale price of single-family homes for the area was up more than 8 percent over May of 2008, according to the Ann Arbor Area Board of Realtors®. The average home in Washtenaw County sold for $236,897 in May, compared to $217,849 in the same time period last year.

It was an improvement from April when the average sale price was $145,611 vs.$222,798 in April 2008. Trends are more important than a slight blip. I have posted the Housing Trends for Ann Arbor Real Estate Market and will be posting those for some of the other areas in Washtenaw County.

Consumers can buy homes listed by banks, for-sale-by-owner and government departments, like HUD. So inventory may actually be up - in the most distressed markets of the country where shadow inventory isn’t represented by REALTORS®. Fannie Mae and Freddie Mac, among the biggest owners of foreclosed homes, typically have only about 35% to 50% of those homes listed for sale at any given time, according to industry estimates.” How many is that? If Fannie Mae only has 1000 foreclosed homes, then 350-500 of them on the market isn’t a problem, is it? Unless the Government Sponsored Entities actually own a million foreclosed homes, which means the real fun hasn’t even started, with or without improvements in listed inventory. So here is my table for absorption for several key areas in the Washtenaw County Real Estate Market that I track.

1.    Months supply decreased for Dexter, Chelsea and Saline while Ann Arbor months supply increased slightly.  Without actual sales data, or sold pricing trends, inventory data is pretty much meaningless. It’s like saying that because there are less Michigan cherries at the grocer’s today, things are improving in the cherry business, when in fact, the reason there are less cherries today is that they were all rotten yesterday. The grocer threw them out to reduce his inventory; he didn’t sell them. So without analyzing sold data, the decreases in inventory may have come from homes leaving the market un-sold. Now I want to bake a cherry pie. Do you want a slice?

May 2009 was certainly an exciting month for Ann Arbor Real Estate!

The Monthly Sales Statistics are in from Ann Arbor Area Realtor Association. The news is encouraging!

Sales figures show 233 residential units sold compared to 303 in 2008. The strong sales numbers for April have not yet translated into a consistent upward trend; however, the average residential sale price is up over last year by almost 9%. Low inventory, reports of multiple offers, and sale prices above list price are all good indicators that the market is moving in the right direction. Naturally of course, the $8,000 first time homebuyer tax credit is an added bonus and incentive for buyers to buy now! Also, MLive.com discusses Green Building - an issue which keeps coming to the decision making table.

In year to date figures released 2008 had 1074 residential properties and 2009 has an impressive 1001. This is not far different from the previous year meaning that the trend is optimistic. By the end of the year it is expected that a strong upward trend will be revealed as buyers take advantage of market conditions.

See the attached document for more detailed sales data for May 2009.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Exciting news is just in from the National Association of Realtors!

A combination of factors, including record low mortgage interest rates and the first-time buyer tax credit boosted sales for the third consecutive month! The Pending Home Sales Index nationally rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.

Locally, the news is just as exciting, here in the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008.

According to Lawrence Yun - NAR Cheif Economist had this to say: “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market…[as] buyers must finalize their purchase by November 30th”

Video Courtesy of the National Association of Realtors

With new rulings allowing First Time Homebuyers to utilize the tax credit as a downpayment before receiving their check from the IRS it is expected that the upward trend of further purchases will continue. However there are a few snags along the route, mainly that processing time for loans has increased due to a higher level of loan documentation being required by lenders and banks taking a long time agreeing details on short sales. Buyers who hang tight and are cautious will end up with the best deals.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

So where do you want your homes exposed? As a seller, your home needs to be on REALTOR.com since consumers go there the most.

To get the most exposure for your home, you need your agent to have an enhanced web presence like the shot below from a Dexter home seller.

As an agent you need to provide the showcase, a tour and as many photos as possible.

As a home owner, you need to request to see how many visits your agent draws so you can find out if your home will get the best exposure. The report below shows my realtor.com site generates about 20,000 visits per week. My other sites generate sizable traffic, but more importantly they generate inquiries or leads for my sellers. Other sites include:

Finally, I provide other data so the Ann Arbor Area Real Estate seller knows and I know how many eyeballs have looked at the tours like below. It shows 1515 visits in April 2009 for this home.

If you think this is interesting, let me know. We have other reports we share with our Washtenaw County real estate clients. Keeping our Ann Arbor Real Estate sellers informed on market activity is critical in the changing market.

Click here to search all listings in Michigan with pictures and tours - FREE!

Click here to search all Ann Arbor area Michigan homes
and condos with pictures and tours - FREE!

Kathy Toth and Team

www.KathyToth.com

Keller Williams Realty

The Ann Arbor Real Estate Market as of the end of April 09 is following the seasonal trend you would expect.  However, the inventory was stabilizing, actually down slightly as shown in the graph below.  But sales are down as well.  Refer to chart below.

In April 08 units for sale were 871 vs. 813 in April 09.  Units sold were in April 08 73 vs. 62 in April 09.  See chart below.

The key to the market is in this next graph.  The median price for sale is about the same, but sold  median price is down 27 percent in the last year.

Market dynamics continue to unfold this year.  We all hope to see the bottom soon.  The Ann Arbor Board of Realtors reported declines for Washtenaw County in table below.

Ann Arbor Board or Realtors year to date prices went from $217,631 in 08 down to $151,111 in 09.  This price pressure is coming from continued foreclosure and short sale deals.

The Michigan Association of Realtors reported a decline for the state in prices of 27% year to date in 09 vs. 08. For a look at the Michigan Association of Realtors statistics for April 2009 click here.

Saline actually saw some price increases recently.  There are some hopeful stats nationally being reported by the National Association of Realtors, with increased pending sales too.

Click here to search all listings in Michigan with pictures and tours - FREE!

Click here to search all Ann Arbor area Michigan homes
and condos with pictures and tours - FREE!

Kathy Toth and Team

www.KathyToth.com

Keller Williams Realty

Average Sold Price in Chelsea, Michigan Declined

Currently there are 160 homes for sale ranging in price from $1,125,000 to $40,000.  There are 10 homes listed over $500,000 for the luxury Chelsea homes and Chelsea Real Estate market, up from 9 last month. On the other end there are 4 homes listed under $100,000.  For any information on these active homes, be sure to ask us. 

The Average sold price in Chelsea declined last month. Chelsea sold homes data is as follows:

Month    Units     Ave Sold Price       Ave Price/SqFt            DOM*

Jan          108           $130,875                      $73.83                     45

Feb             8           $177,688                       $83.19                     19

Mar            7            $185,512                     $90.11                      88

April           8            $137,375                     $87.58                      45

The average list price to sale price for April was 86.33 percent without concessions. Total concessions for this month were $18,000.  The median sold price for April was $124,000.

When the gap between the list prices and the sold prices narrows, (supply and demand) the market will be more stable.  Our buyer agents have several Chelsea homes under contract, awaiting closing.  We have several more buyers looking for Chelsea homes right now.  The $8,000 first time home buyer tax credit is allowing more buyers to enter in the market.  We are seeing multiple offers on properties.

Regarding absorption, see chart below:

We have gone from one year supply of homes in Jan 09′ to over 1.5 years of supply.  If no other homes came on the market, it would take 19.52 months to sell all of the homes; this is the current absorption rate.  Compare this to an absorption rate of 9.8 months in Ann Arbor, MI.

For more information on what is happening with Washteanw County homes for sale or sold in Chelsea, MI. please call us 734-426-6669. 

*Days on market may be understated because it starts at day zero when it is listed as a new listing with new agent. The Ann Arbor Area Board Sales price does not consider concessions.

Click here to search all Ann Arbor area Michigan homes
and condos with pictures and tours - FREE!

Kathy Toth and Team

www.KathyToth.com

Keller Williams Realty

Ann Arbor Real Estate really is weathering the storm much better than many other parts of the country and offers many buyers a great opportunity to pick up a great home at a fabulous price.

In Burns Park, an affluent suburb of Ann Arbor where many of the University of Michigan’s teaching staff live has some exciting real estate data hot off the press provided by the Affinity Valuation Group; according to them, the average sold price per square foot has gone from $220.00 to  only $202.00, showing this neighborhood is holding it own in terms of pricing, showing much stability. The suburb has often been seen as one of the areas most desirable neighborhoods offering walking or cycling distance to the University Campus as well as containing spacious homes, a great elementary school and of course, a park where it draws its name.

Here is a graphical view of the current price per square foot data trend.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

The Ann Arbor Real Estate Market statistics for March 2009 are in! The news is great.

For Real Estate in Ann Arbor in Michigan through to Los Angeles California pending home sales are up!

The National Association of Realtors Pending Home Sales Index increased 3.2% to 84.6 from a level of 82.0 in February, and is 1.1% higher than March 2008 when it was 83.7. This is the second consecutive month with an increase.

This increase is partially due to affordability being at near record levels coupled with historically low mortgage rates as well as financing starting to become more and more available. Also, lets not forget the $8000 tax credit for first time homebuyers.

In fact, affordability is so high that the National Association of Realtors Housing Affordability Index was at 166.7 in March – down from an upwardly revised record of 174.4 in February due to higher home prices in March 2009. This shows that housing is in line for a steady recovery. For buyers this means that the opportunity of purchasing a great home at a great price is going to fade as the market recovers and more price rises are seen.

Watch this space for more. The next issue of the pending home sales index will come out June 2nd. Be assured we will report on it!

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Click here to search Ann Arbor Real Estate using our complimentary MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Recently the Ann Arbor News summarized the stats prepared by the Ann Arbor Board of Realtors®.  Further detail is explored in the link to the table below with the last 12 months for residential properties.

Ann Arbor Real Estate Statistics

So what this indicates is that we still have a buyer’s market since the supply is greater than 6 months and overall, Ann Arbor is faring the best with 8.2 months supply, Dexter at 14.5 months supply, Saline at 14.6 months and Chelsea trailing with 16 months supply.  I explain it like this.  If you fill up a bathtub with water and add no more drips from the faucet, it will take 8.2 months for the water to drain out.  If no more houses are put up for sale, then it will take 8.2 months for all those Ann Arbor homes to sell.

Statistics change quickly and differ in price categories, so be sure to check with your Ann Arbor Real Estate experts for details on your home.  We are here to help.