Low Inventory Drives Quick Sales and High Prices

Inventory of single family residential homes for sale lagged 14.8 percent behind last year, according to data released by the Ann Arbor Area Board of REALTORS®.

432 sellers of single family homes put their homes on the market in August, compared to 507 in August 2015.

Low levels of housing for sale also means the homes on the market tend to sell quickly. The average days on market has dropped from 42 days a year ago to 36 days in August 2016.

The good news for sellers is that low inventory continues to drive up prices. The average list price in August was $286,918, a 2.5 percent jump over the August 2015 list price of $280,045. The average sale price in August was up 2.4 percent at $283,171, compared to the average sale price in August 2015 of $276,505.

Sales of single family residential properties was similar to a year ago, however sales of condos were up 38.8 percent with 125 sales in August, compared with 90 condo sales in August 2015. Vacant land is in demand, with 24 parcels sold in August 2016, compared to 18 sold in August 2015, a jump of 33.3 percent.

National Association of REALTORS® Chief Economist Lawrence Yun noted, "More home shoppers having success is good news for the housing market heading into the fall, but buyers still have few choices and little time before deciding to make an offer on a home available for sale. There's little doubt there'd be more sales activity right now if there were more affordable listings on the market."

To see more Ann Arbor Area housing statistics, view the August 2016 Statistics Report.