Home of the University of Michigan, Ann Arbor boasts an active real estate market buoyed by low interest rates, and employment from medical and technical firms as well as the school, the city's largest employer.

"Ann Arbor is a community of 135,000 located 45 miles west of Detroit," says Realtor Roger Higgins. "The area attracts a wide variety of high-tech and research based companies of all sizes, the largest of which is Pfizer complex adjacent to the north campus of the university. Ann Arbor is a true blend of lifestyles and cultures; this very energetic and diverse community is a cultural center for Southeastern Michigan. Housing in Ann Arbor is a blend of the old and new, the large and small, and includes a variety of residential and condominium communities."

Higgins suggests, "Those relocating to Ann Arbor often describe housing in the area as expensive; the frustration of 'sticker shock' is common to many on their first area visit. Although area homes have high price tags, there is always demand for houses, whether they are the older homes on the Old West Side or in Burns Park, or in newer housing communities outside the city proper; there are occasional stories of 'multiple offers' in the most popular areas. The current market has a larger supply of homes than in recent years (both condominiums and single-family homes), but total sales activity increased in 2003 from 2002, and demand remains high for new and used homes and condominiums. Most new construction is outside the city limits; new homes start in the $350's and base prices for new condos are in the $160's. The average sale price for residential property was $333,000 in 2003; housing prices start in the $160-170,000 range. For condos, the average sale price was $201,000 in 2003."

Adds Realtor Mary Helen Gilbert, "The heart of Ann Arbor is more than the University of Michigan. A culturally, ethnically and politically diverse community with a rich history going back to the early 19th century welcomes you."

About the market Gilbert explains, "Year-to-date figures from the board of Realtors show that the number of listings is up and transactions are slightly down compared to last year. January showed fewer single family homes sold than January, 2003 and sales volume was down 13 percent compared to 2003. Condominiums continue to show strong gains in price and volume, up 12 percent in price and 16 percent in volume over January, 2003. Homes priced at under $300,000 that are in good condition are selling well. Homes priced over $450,000 are facing strong competition and are not selling quickly unless carefully priced."

"Tree-lined streets, a vibrant downtown, fantastic restaurants, whatever you're looking for is in Ann Arbor," says Realtor Jackie Wright. "Music, theater and art offerings are exemplary. There are some gorgeous new downtown condominiums - just like the 'Big Apple!'"

Wright advises, "Central Ann Arbor remains very strong with listings in the Old West Side, Burns Park, campus area selling quickly. This assumes that they're priced correctly. Overpriced listings, even in these "hot" areas, are waiting for suitors. Some of the new developments are selling like "hot cakes," if the price is below $500,000. Everyone wants new and glitzy and they're willing to pay for it. If a home doesn't compete with that, it's time to add granite countertops and hardwood floors. E-mail me for help on this issue. It's not difficult, not terribly expensive and makes a world of difference - you get to move! On the other hand, buyers can perhaps strike a very good deal for a home that needs only some pizzazz. Do you know how easy it is to add crown moldings and Gaggenau ranges? If you've ever thought of upgrading to a larger home, today's interest rates make it a very savvy move. The Ann Arbor area is experiencing growth and has for years provided sound real estate investment opportunities."

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Published: March 2, 2004

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