The real estate markets in Ann Arbor and Dexter continue to thrive as we head into February 2025. Both cities are benefiting from strong demand, limited inventory, and shifting buyer preferences, making them standout destinations for homebuyers and investors alike. Here’s a detailed look at the key factors shaping these markets.
Market Overview
Ann Arbor Real Estate Trends
- Rising Home Prices
- The median home price in Ann Arbor has reached approximately $443,000, reflecting a 9.4% year-over-year increase.
- Homes in central neighborhoods like Burns Park and Water Hill are commanding premium prices due to their proximity to downtown amenities.
- Competitive Market
- Homes are selling in an average of 44 days, with multiple offers being a common scenario.
- Buyers are prioritizing move-in-ready properties, especially those with energy-efficient features.
- Limited Inventory
- Inventory remains tight, with the number of homes on the market down 12% compared to February 2024.
- This scarcity has driven demand for new construction in areas like northeast Ann Arbor.
Dexter Real Estate Trends
- High Demand for Suburban Living
- The median home price in Dexter has reached $469,000, up 8% from last year.
- Dexter appeals to families and professionals seeking a quieter, small-town atmosphere with access to top-rated schools and outdoor activities.
- Growth in Luxury Properties
- Larger homes with premium finishes and spacious lots are increasingly in demand.
- New developments are catering to buyers seeking modern amenities with a rural feel.
- Steady Market Activity
- Homes in Dexter typically sell in under 30 days, with high demand for properties near the Huron River and downtown Dexter.
Key Factors Driving the Market
- Job Growth
- Ann Arbor’s economy remains strong, driven by the University of Michigan, healthcare systems, and a growing tech sector.
- Dexter benefits from its proximity to Ann Arbor, attracting professionals seeking more affordable housing options.
- Interest Rates
- While mortgage rates have stabilized around 6%, they remain higher than historic lows.
- This has made affordability a challenge for some buyers, but demand remains steady due to strong local economies.
- Lifestyle Shifts
- Buyers are prioritizing homes with home offices, larger yards, and outdoor living spaces as hybrid work models continue.
- Energy-efficient and eco-friendly homes are also gaining popularity, especially in Ann Arbor.
- New Construction
- Developments in northeast Ann Arbor and Dexter are helping to meet demand, particularly for single-family homes and townhouses.
- Builders are focusing on modern designs with sustainability features.
- Seasonal Trends
- February typically marks the beginning of the spring buying season, with increased activity expected as more homes hit the market in March and April.
Neighborhood Spotlights
- In Ann Arbor:
- Kerrytown: Known for its walkability and historic charm, this neighborhood is a favorite for buyers seeking downtown access.
- Ann Arbor Hills: Offers spacious homes and upscale living near the University of Michigan.
- Water Hill: Popular with families for its community feel and proximity to parks.
- In Dexter:
- Downtown Dexter: Combines small-town charm with walkability and access to local shops and restaurants.
- Huron Farms: A sought-after subdivision with family-friendly amenities.
- Webster Township: Perfect for buyers looking for larger lots and a rural atmosphere.
Tips for Buyers and Sellers in February 2025
For Buyers:
- Be Prepared: Get pre-approved for a mortgage to strengthen your offer in a competitive market.
- Act Quickly: Homes in both Ann Arbor and Dexter are selling fast, so be ready to make decisions.
- Consider New Construction: If inventory is tight, explore options in new developments.
For Sellers:
- Price Strategically: Work with a real estate agent to price your home competitively based on recent market trends.
- Highlight Features: Energy efficiency, updated kitchens, and outdoor living spaces are top priorities for buyers.
- Stage Your Home: Present your property in its best light to attract multiple offers.
Looking Ahead
The real estate markets in Ann Arbor and Dexter are expected to remain strong throughout 2025, driven by high demand, limited inventory, and desirable lifestyles. Whether you’re buying, selling, or investing, now is the time to take advantage of these thriving markets.
Ready to explore your options? Let’s connect today to make the most of Ann Arbor and Dexter’s real estate opportunities.