Sales Trends:
Post-pandemic sales in Washtenaw County peaked in 2021 but have since declined. Despite strong demand, inventory shortages, elevated interest rates, and a lack of move-in-ready listings have significantly limited sales over the past two years. Through October 31, year-to date sales of 2,174 are down 9% compared to last year and down 34% compared to the 2021 peak.
Values: Average Sale Price and Price Per Square Foot
The pandemic amplified the previous issue of high demand with low supply. Since 2020 average sale price and price per square foot have risen 40% and 43% respectively. In the past year, price increases slowed with average sale price up to 5% and price per square foot up 9%. Recent price increases have been fueled largely by the expansion of upper-end markets with the simultaneous shrinking of more affordable entry-level markets.
Listings Taken:
YTD listings peaked in 2020, with 4,200 compared to about 3,000 properties both last year and this year. The lack of fresh, quality inventory continues to restrict both sales and price growth.
Looking Ahead:
Through year-end and into 2025, demand will continue to exceed supply. Inventory shortages, interest rates and rising property taxes (due to increased values over the past few years) will continue to challenge first-time and entry level buyers. Upper-end markets will be more balanced. In the short run, expect the frequency of year-end price reductions to rise in an effort to move tired inventory. Average price will temporarily drop due to inventory quality, but will recover as fresh new listings arrive early in 2025. Market cycles will continue to create opportunities for those who understand and embrace them.
