Let’s take a look at the Ann Aror real estate market. Currently there are 41 sales pending in the Ann Arbor market overall, leaving 446 listings in Ann Arbor still for sale. The resulting pending ratio is 8.4% (41 divided by 487). So you
might be asking yourself, that’s great…but what exactly does it mean? I’m glad you asked!
The pending ratio indicates the supply & demand of the market. Specifically, a high ratio means that listings are in demand and quickly going to contract. Alternatively, a low ratio means there are not enough qualified buyers for the existing supply.
Taking a closer look, we notice that the $200K – $300K price range has a relatively large number of contracts pending sale in Ann Arbor.
We also notice that the $200K – $300K price range has a relatively large inventory of properties for sale at 112 listings. The median list price (or asking price) in Ann Arbor for all properties in this
market is $417,000.
A total of 800 contracts have closed in Ann Arbor the last 6 months with a median sold price of $344,500. Breaking it down, we notice that the $200K – $300K price range contains the highest number of sold listings.
Alternatively, a total of 50 listings have failed to sell in Ann Arbor in that same period of time. Listings may fail to sell for many reasons such as being priced too high, having been inadequately marketed, the property was in poor condition, or perhaps the owner had second thoughts about selling at this particular time. The $100K – $200K price range has the highest number of off-market listings at 10 properties.
Looking at the chart above, you might be wondering why average days on market (DOM) is important. This is a useful measurement because it can help us to determine whether we are in a buyer’s market (indicated by high DOM), or a seller’s market (indicated by low DOM). Active listings (properties for sale) have been on the market for a median time of 44 days.
Analysis of sold properties in Ann Arbor for the last six months reveals a median sold price of $344,500 and 8 days on market. Notice that properties in the $0K – $100K price range have sold quickest over the last six months.
The recent history of sales can be seen in the two charts below. The median sold price for the last 30 days was $342,830 with a DOM of 8 days.
Since the recent DOM in Ann Arbor is greater than the median DOM for the last 6 months, it is a negative indicator for demand. It is always important to realize that real estate markets can fluctuate due to many factors, including shifting interest rates, the economy, or seasonal changes.
Ratios are simple ways to express the difference between two values such as list price and sold price. In our case, we typically use the list-to-sale ratio to determine the percentage of the final list price that the buyer ultimately paid. It is a very common method to help buyers decide how much to offer on a property.
Analysis of the absorption rate in Ann Arbor indicates an inventory of 3.3 months based on the last 6 months of sales. This estimate is often used to determine how long it would take to sell off the current inventory of properties if all conditions remained the same. It is significant to mention that this estimate does not take into consideration any additional properties that will come onto the market in the future.