Inventory issues still plague Washtenaw County housing market
Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last measure, according to the National Association of REALTORS® (NAR). Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on home builders, causing new-home sales and construction to slow.
New Listings in Washtenaw County decreased 14.9 percent for Single Family homes and 26.8 percent for Townhouse/Condo homes. Pending Sales increased 9.9 percent for Single Family homes but decreased 2.5 percent for Townhouse/Condo homes. Inventory decreased 30.5 percent for Single Family homes and 43 percent for Townhouse/Condo homes. Median Sales Price in Washtenaw County increased 18.6 percent to $403,250 for Single Family homes and 11.6 percent to $280,000 for Townhouse/Condo homes.
Days on Market decreased 20.0 percent for Single Family homes but increased 7.4 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 22.7 percent for Single Family homes and 38.5 percent for Townhouse/Condo homes. Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.
Courtesy of the Ann Arbor Area Board of REALTORS
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