February 2023 Ann Arbor Area Housing Market Update

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Welcome to the Studio Cast’s monthly housing update for Washnaw County. I’m Todd Waller and here is the market update from the Ann Arbor Area Board of Realtors.

In its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter percentage point to 4.50 to 4.75 percent, its eighth rate hike since March of last year when the interest rate was nearly zero. Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month to month as of last measure, but affordability constraints continue to limit home buyer activity overall, with existing home sales declining for the 12th consecutive month according to the National Association of Realtors.

New listings in Washtenaw County decreased 21.4% for single-family homes and 10.8% for townhouse and condo homes. Pending sales increased 15.9% for single-family homes and 19.7% for townhouse and condo homes. decrease 20.4% for single-family homes and 27.8% for townhouse and condo homes.

Median sales price in Washtenaw County decreased 1.7% to 375,000 for single-family homes and 0.3% to $297,450 for townhouse and condo homes. Average days on market increased 20.6% for single-family homes and 66.7% for townhouse and condo homes. Both supply of inventory decreased 8.3% for single family homes and 12.5% for townhouse and condo homes.

With buyer demand down from peak levels, home price growth has continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines, but with rates ticking back up again in recent weeks, buyers are once again pulling back, causing sales activity to remain down heading into the spring.

Thanks so much for stopping by and listening to this monthly update of the Washtenaw County Real Estate Marketplace. This is Studio 48 saying we’re here to recreate real estate.

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