Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory. Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply.
In Washtenaw County, New Listings decreased 17.4 percent for Single Family homes and 4.1 percent for Townhouse/Condo homes. Pending Sales increased 14.2 percent for Single Family homes and 35.0 percent for Townhouse/Condo homes. Inventory decreased 51.9 percent for Single Family homes and 51.6 percent for Townhouse/Condo homes. Median Sales Prices for Washtenaw County increased 3.6 percent to $364,500 for Single Family homes and 2.5 percent to $285,000 for Townhouse/Condo homes. Days on Market decreased 13.8 percent for Single Family homes and 48.9 percent for Townhouse/Condo homes.
Months Supply of Inventory decreased 53.3 percent for Single Family homes and 60.0 percent for Townhouse/Condo homes. Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low.
Courtesy of the Ann Arbor Area Board of REALTORS