Two months into the new year, the inventory of single family residential homes for sale is lower than last year and is selling faster.
290 new single family residential listings were posted in February, compared to 337 in February 2016, a decrease of 14 percent. Despite the lower inventory, sales are up. There were 190 closed sales of residential properties in February 2017, an increase of 3.8 percent over 183 properties sold in February a year ago. Properties sold in 2017 sold 15 percent faster than last year, with an average of 58 days on the market versus 68 days in February 2016.
Due to the lack of inventory and strong demand, prices continue to rise. The average listing price in February was $283,648, an increase of 3.3 percent compared to the February 2016 average listing price of $274,409. The average sale price for single family residential properties was $276,845 in February 2017, an increase of 4.2 percent from the February 2016 average sale price of $265,746.
Buyer demand is expected to stay strong due to continued job growth and more millennials and baby boomers entering the market. The key challenges will be continuing low levels of available homes for sale, combined with navigating marginally higher mortgage rates.
To see more Ann Arbor Area housing statistics, view the February 2017 Housing Statistics Report.