Although slow to arrive due to the long cold winter, the spring market is finally heating up. The total number of Washtenaw County sales through April continues to lag a bit from the same period in 2013, but the gap is closing and prices are up 10% year over year.
One of the biggest logs in the dam holding back a flood of new listings is the seller’s “Move Up Spiral.” With many homes selling quickly, some sellers are afraid to put their home on the market until they find one to buy. We have successfully used a variety of tactics in contract langue, and are using our knowledge of upcoming listing that haven’t specifically hit the market yet to help sellers solve this problem. In fact, Reinhart sales are up 5% through April, bucking the overall market statistic.
For sound advice and help getting past your personal real estate obstacles, contact us today.
Despite the winter weather, first quarter 2014 sales of houses and condominiums equaled the record pace of 2013.
Market activity remains very strong:
• Buyer demand is high.
• Mortgage rates remain low.
• Average sale prices grew by 18% in 2013.
• Sales rose in many Washtenaw County school districts and were down 2% in Ann Arbor.
• Reinhart maintained its dominant market position.
For sound advice and help creating your real estate plan, visit our website today.
Comparing our January/February 2014 to last year, we are dead even in the number of listings taken and +32 units (7.1%) on sales agreements signed.
Given that this has now officially been declared the most severe winter since 1950-51, I think this is a tremendous accomplishment. February showed a pattern of acceleration of both listings and sales as the month progressed, so we start March with strong momentum.
At the Leading Real Estate Companies of the World conference last week, one of the consistent messages we heard from brokers all over the county was the lack of listing inventory. Ann Arbor is among the lowest inventory location, but Reinhart is out-performing our competitors and I expect we will have great success on the listing side of our business in the next 90 days. That will certainly be our focus!
Start your real estate plan off right with a free consultation with aReinhart professional. We will arm you with all the knowledge you need to decide what is right for you.
The Ann Arbor regional real estate market continues to make strong price grains over the previous year in both median and average sale price through June (15% and 22% respectively).
The recovery is steady and broadening to include healthier activity in other hard-hit market segments, such as vacant land and new construction. While there was a buying frenzy this spring that produced double-digit numbers of offers on some listings, supply and demand is bringing back the balance.
It’s still a sellers’ market in popular areas and price ranges, but the crazy atmosphere of the spring has settled down. First-time home buyers and those who weren’t successful earlier in the year should find the late summer and fall an easier time to find the right home. New construction is again a legitimate option. Interest rates are rising and this may be a compelling reason to act now instead of waiting.
For sound advice and help creating your real estate plan, call a Reinhart Realtor today.
As the graph below indicates, 2012 was a very strong year at Reinhart. In fact, it was a record year for closed sales (2828), $ volume closed ($664 million) and for market share (45%+ in Ann Arbor and 36%+ for the entire Multiple Listing System).
Sales through the entire MLS rose 9.7% in 2012 and average residential sale prices grew by 8.4% v. 2011. Reinhart accounted for most of the industry increase as its sales rose 25.2% v. 2011. Sales improvement was broad based across the county. Each of the following school districts enjoyed improved sales: Ann Arbor, Ypsilanti, Saline, Dexter, Chelsea, Whitmore Lake and Milan.
We’re pleased with this success and excited about the strength of the real estate recovery in Washtenaw County and southeast Michigan. With interest rates still near record lows and the economy gaining momentum we’re witnessing record buyer demand in the marketplace.
January 2013 was the strongest on record for purchase agreements executed. This reality has left us with an actual shortage of homes for sale as we begin February. My, how things have changed in a few short years!
This imbalance in supply and demand is driving prices higher. There is certainly room for that, as Ann Arbor/Washtenaw County home prices are still 10-30% below the 2005-6 price peak. So it’s a wonderful time to be a seller of real estate, and extremely competitive if you are a buyer.
As the year begins, we’re focusing on getting better in the ways we serve all of our clients. One challenge has been mastering the new software package for the Ann Arbor Area Board of Realtors Multiple Listing Service. The new technology was clearly needed, but change is hard and the industry is scrambling to master the new tools. For Reinhart agents this has meant lots of special classes.
But, we will be ready for the heightened activity of the spring market. If you or your friends are ready for your next real estate action step, don’t hesitate; contact a Reinhart Realtor or me personally. And have a terrific 2013!
Reinhart, Ann Arbor’s locally owned real estate leader, increased its Ann Arbor market share in 2012 according to BrokerMetrics®, an independent tracking company.
*Based on information from BrokerMetrics® for the period of 1/1/2012 to 12/31/2012.
Ann Arbor is 2+ years into recovery from the recession. The excess supply of available homes has been completely absorbed, and prices are rising. In fact, many sellers are experiencing multiple offers during this “gap” period before the spring surge of listings arrives.
If you have been waiting to sell your home, consider acting now instead of waiting until spring. The balance has shifted and there are more buyers than sellers. Listing before the spring wave of homes hits the market can put your home in a more favorable competitive position and result in a higher price.
The market has stabilized and the days of uncertainty and long market times are behind us in most cases. Prices are rising in most areas. New construction is also rebounding and may be a viable option for your next home.
Start your 2013 real estate plan with a free consultation with a Reinhart professional. We will arm you with all the knowledge you need to decide what is right for you.
When I wrote in late summer I described how the Ann Arbor area was running ahead of the rest of the U.S. in terms of real estate recovery. It’s still true, but the good news is that the rest of the country is continuing to strengthen and that the predictions for 2013-14 are robust.
Realtors tend toward optimism so, let me state that all of these comments assume that we’re not going over the fiscal cliff! This week Lawrence Yun, chief economist for the National Association of Realtors, said:
Existing Home Sales will rise 9% this year, 8.7% in 2013, and approximately 5% in 2014.
Mortgage rates will rise gradually to 4% in 2013 and 4.6% in 2014.
The national median existing home price will increase 15% cumulatively in the 2012-14 period.
New home sales will rise more than 50% in 2013.
The local market momentum seems very likely to continue.
The Reinhart Company will finish 2012 in record territory both for number of sales and the dollar volume of those sales. I’ll provide final statistics in January. Right now we are all formulating 2013 plans and improvements. Our expectation is for a fast January start to 2013. We are still seeing strong buyer demand, as we get ready for the holidays.
Nationally, residential real estate sales and prices are moving solidly into recovery. Through July sales are up 10.4% versus 2011 and prices have risen 9.4%.* The National Association of Realtors predicts strong continued growth in 2013.
But real estate is local, and in Ann Arbor this is old news. Sales here began to improve in the second quarter of 2009 and have continued to gain strength. Ann Arbor is running well ahead of the national recovery and for many reasons, that will continue:
University of Michigan is hiring and populating the NCRC (the former Pfizer campus)
Tech and start-up firms are hiring
The auto industry is back from the brink and growing in Southeastern Michigan
Interest rates are near all-time low levels
The market has largely absorbed the inventory of distressed properties (foreclosures – short sales)
The rate of recovery in our market is slower the further out from Ann Arbor one looks, but every community is significantly healthier than it was 12-24 months ago!
At Reinhart, we have been fortunate to capture much of the increased sales activity. Our market share has never been higher (45%+ in the Ann Arbor School District and 37% of the entire Multiple Listing Service as of 8/31/2012**) and we now exceed the combined sales totals of our three closest competitors.
We appreciate the support and confidence that our communities and friends have extended us. We stand ready to help, whatever the real estate need. Have a great fall, 2012!
* Source: National Association of Realtors “Existing Home Sales Report” (7/31)
** Data from the Multiple Listing Service of the Ann Arbor Area Board of Realtors