Lack of Supply Limits Number of Homes Sold

The lack of inventory of homes for sale is affecting the number of homes sold, according to the Ann Arbor Area Board of REALTORS®.

456 new single family residential listings hit the market in March, a decrease of 4.6 percent from the already low 478 posted in March 2016. Consequently, the number of sales were down 14.4 percent, from 299 a year ago to 256 closed sales reported in March 2017.

Due to the low inventory, the homes that do reach the market are selling 30 percent faster than a year ago, at an average of 40 days, versus 57 days last March. Multiple offers are common, with 23 percent of homes selling over list price and 28 percent selling at list price.

Condos are a bright spot, with 109 new condo listings entering the market in March, a 7 percent increase over the 102 posted in March 2016. March condo sales were up 11.6 percent, with 67 sales, compared to 60 sold in March a year ago.

Home prices continue to reach new heights, propelled by the lack of available housing. The average listing price for a single family residential property in March was $296,945, an increase of 3.9 percent over the average listing price in March 2016 of $285,798. The average sale price of $294,078 reflects a jump of 5.8 percent over last year's average price of $277,931.

The number of homes for sale is at the lowest level on record, according to the National Association of REALTORS®, who began tracking inventory 18 years ago. That means many home buyers likely will find fewer options this spring, and the homes that are being listed tend to sell fast and at a premium.

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

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