The following article comes from Rachel Massey of Massey & Associates Valuation Services. You can learn more about them here: www.annarborappraisals.com
Washtenaw County continues to see good market activity overall (remember this is entire school districts, not individual market areas), with almost all markets showing in seller’s market territory based on the number of listings under contract. There are some monthly changes, with Chelsea, Saline, Ypsilanti and Ann Arbor dropping slightly in absorption from the month prior, but still strong, to Manchester, Dexter, Whitmore Lake and Milan increasing in absorption slightly.
Supply has increased in every market but Lincoln schools since the previous month. Supply is still low however, with the greatest supply shown in Saline, but this has a lot to do with a larger inventory of “to be built” houses that are not truly available for immediate possession. In all cases, there is no area with more than a 5-month supply of inventory, with the lowest inventory currently in the Ypsilanti market, followed by Lincoln schools. Chelsea, Manchester, Dexter, Whitmore Lake and Ann Arbor are all in the 3-month range plus or minus a bit. This is still limited inventory, however what I see here is a larger increase in inventory from the previous month, meaning we are starting to see some building of inventory.
What does this mean when inventory builds? More options. Buyers need more options as it is critical for a well-functioning market; however, as inventory builds and more options are available, prices may adjust. Based on what I am observing as an appraiser, the market has continued problems in terms of inventory in the starter ranges, with builders simply not being able to meet these needs. Watch for Manufactured Housing “Next Generation” homes to possibly meet some of these needs as Fannie Mae and Freddie Mac roll out some programs designed to make financing of these new higher quality MH properties a viable alternative. Will be interesting to see if these take off in our market.