Sales Climb Despite Less Inventory

Sales of single family residential properties were up 4.3 percent in May, despite a decrease of 15.8 percent in new listings, according to numbers released by the Ann Arbor Area Board of REALTORS®.

417 single family homes were sold in May, compared to 400 in May 2016. 538 new residential listings came on the market in May, compared to 639 in May a year ago.  

Sales of condos were also up, even with fewer coming onto the market. 111 condos sold in May, compared to 99 in May 2016, an increase of 12.1 percent. During that same time period, 128 new condos joined the market, a decrease of 4.5 percent from the 134 condos listed last May.

True to the principles of supply and demand, prices continue to rise due to lower inventory. The average listing price for May 2017 was $320,853, an
increase from last year of 7.2 percent. The average sale price for May 2017 was $320,360, an increase of 8.5 percent over May a year ago. 43 percent of properties sold over list price, while  15 percent of properties sold at list price.

Nationally, more homes are predicted to be sold this year than in more than a decade. In 2017, the number of existing-home sales is expected to
increase about 3.5 percent to 5.64 million. By 2018, existing-home sales will likely rise another 2.8 percent
to 5.8 million, according to forecasts by the National Association of Realtors. The rise in new jobs, pent-up household formation, and increasing consumer confidence are helping to propel the housing market forward, according to NAR.

To see more Ann Arbor Area housing statistics, view the May 2017 Housing Statistics Report.


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