July Housing Market Update for Washtenaw County

 Hi Everybody!

Today I'm going to go over some stats on what the housing market did in the month of July throughout Washtenaw County as well as a couple of trends that we are seeing a lot these days. 

The Trend:

Right now, the biggest trend that we as Realtors are seeing is that, thanks to HGTV, home buyers are looking more and more for houses that have high quality updates like the ones they see on tv. Buyers expect to have a home with beautiful kitchens and baths, awesome flooring, and great light fixtures. They want their home to be the place that they go to have fun and relax. This is one of the main reasons that new construction is so popular these days!

The Problem:

The problem is that neither buyers nor sellers want to do the work to have these high quality updates in their houses. People these days are busier than ever! When they come home after a long day at work, they don't want to work on doing updates to their home. There is a massive shortage of high quality move-in ready homes! Everyone wants a beautiful home, but no one is willing to do the work whether that is due to a lack of time or a lack of finances. Most of the houses on the market need work. During the recession, people didn't have the money to update their homes. Therefore, homes that were in need of updating 15 years ago still haven't been updated. Many roofs, windows, and furnaces hit their expiration date years ago. Sellers don't want to invest a lot of money into their property just to sell it, and many buyers don't have the financing or desire to fix someone else's problems. Another problem is that outdated houses are not being priced accordingly. People are pricing outdated houses with a similar price per square foot as nicer, newer homes. Buyers can't, and won't, pay full price for houses that need $40,000+ put in them. That is just a bad investment and buyers know it.

The Result:

So what does this trend mean for the housing market?

1. The homes that do have the high quality updates are selling quickly and for top dollar.

2. The homes that do not have the high quality updates are sitting around a lot longer because buyers are willing to wait for nice home. 

3. This is a great opportunity for people who are willing to flip houses. Assuming they can get a house for a reasonable price. 

So how does this play out in the stats we saw for the month of June? Well, certain areas have been effected more than others. The general economy of our country has helped the housing market continue to grow and thrive, but we are seeing changes over the last couple of years. Homes are selling and prices are going up, but at a much more stable level. The stats below make that point well. 

Washtenaw County Stats Overall 

Number of Listings

June 2019: 857        June 2018: 666

Number of Pending Listings

June 2019: 406        May 2019: 305

Number of Sold Listings 

Through June of 2018: 1266   YTD 2019: 1240

Average Sales Price 

Through June of 2018: $330k      YTD 2019: $345k

Ann Arbor June Stats

Number of Listings

June 2019: 431  ↓ 18% From June 2018 and ↓ 7% from May 2019

Median List Price 

June 2019: $490k    June 2018: $464k    May 2019: $490k

Average Days on the Market

June 2019: 29       June 2018: 25

Median Sale Price

June 2019: $395k    June 2018: $365k    May 2019: $385k

Number of Sold Listings

June 2019: 196   June 2018: 186  May 2019: 188

Ann Arbor as always, is a hot market and a trendy place to live.  Homes are selling quickly and prices are rising steadily. As with the other markets throughout Michigan we are seeing a big difference in the sale price vs. list price because of more homes being sold in the entry level to mid level price ranges while the upper price level homes are sitting a bit longer.

Ypsilanti June Stats

Number of Listings

June 2019: 91  ↓ 34% From June 2018 and ↓ 30% from May 2019

Median List Price 

June 2019: $245k    June 2018: $218k    May 2019: $245k

Average Days on the Market

June 2019: 24       June 2018: 15

Median Sale Price

June 2019: $222k    June 2018: $209k    May 2019: $214k

Number of Sold Listings

June 2019: 79   June 2018: 97  May 2019: 94

Saline/Milan June Stats

Number of Listings

June 2019: 153  ↓ 10% From June 2018 and ↓ 12% from May 2019

Median List Price 

June 2019: $400k    June 2018: $395k    May 2019: $399k

Average Days on the Market

June 2019: 66       June 2018: 44

Median Sale Price

June 2019: $290k    June 2018: $317k    May 2019: $296k

Number of Sold Listings

June 2019: 51   June 2018: 49  May 2019: 39

One other trend that we are seeing is that homes priced in the entry and mid level price ranges are selling much quicker than homes in the upper level price range. This is great news for anyone who is wtanting to sell their mid level priced home and move to an upper level priced house. If their house is a quality move-in ready house, it should sell quickly and then they will have a good chance of getting a deal on their new house since houses are moving slower and sellers may be more desperate.

In short, the housing market is stable and increasing and buyers are willing to pay top dollar for great houses. These are all good things for the longevity of the market. If you are planning on selling your home, do yourself a favor and make sure it is up to date and has quality finishes. You're bottom line will thank you.

Happy House Hunting!