HALFTIME REPORT 📈
Welcome home, sports fans! ⚽️ 🏀 🎽
Can you believe that 2024 is already past the halfway point??
Here are the 6 questions I’ve heard most in the first 6 months of the year.
1 - Will there be any Bandit races this year?
I know this questions has nothing to do with our local real estate market, but it’s one I get at least 10 times per week.
After a wild 2023 that nearly got me arrested multiple times, I am taking the year off from hosting any public races.
However, I am personally committed to giving back to the community that has given me so much since moving here 11 years ago.
Over the course of 11 years living in Ann Arbor, I’ve made more lasting memories on the B2B than anywhere else. The B2B is where I hosted my first race (Gallup Gallop, 2018), have walked my dog for a decade, and have forged some of the most important friendships of my life.
The B2B has brought me and this entire community so much joy. This is one small way to give something back, and donate to the organization responsible for developing it.
In 2024, I sponsored The Huron 100 mile footrace, which raised money for The Huron Watershed Council. Additionally, Bandit Racing Team members logged over 200 combined hours of course marking, aid station volunteering, and livestream broadcasting.
I will also be sponsoring The Watermoo, a gravel race hosted by Ann Arbor Velo Club
All that being said… check out banditracingteam.com and you might stumble upon some true bandit-style races this Fall 🦝 🎽 🔥
2 - I hear the market is tough…how’s your year going?
Despite a 27% dip in inventory since 2022, my clients are finding ways to win in this market
So far I’ve sold 16 homes in 2024 - three more than I did in all of 2023.
What’s the secret?
Strategic offers, working together, and discovering hidden gems.
My goal is to hit 24 by the end of year 🤞🏻
For all you Strava-truthers out there, check out this heat map to see where my clients are buying / selling.
3 - How is the local real estate market?
A quick aside: yes, that is a real photo of my dozing off during a sales seminar in 2022. Look, I need to get something off my chest - I’ve never had much use for “learning scripts.” In my travels, I’ve found that studying the market and asking the right questions is a much better use of time for my clients.
OK, back to the question…there’s a strong chance that people are just being polite and making conversation when this comes up 5-10 times per day. However, I usually respond with as much precision as I can without putting someone to sleep (see photo above).
In short, the three I’s continue to dominate the conversation: Inventory, Interest rates, and Inflation.
Inventory is down 27% for single family homes in our market since 2022. What’s driving this?
Interest rates continue to hover around 7%, keeping sellers on the sidelines who are locked into sweetheart rates circa 2020 / 2021.
And why did interest rates go up so much since 2020?
Inflation. Fortunately, the key economic indicators are looking more stable than they have all year. All signs point to rates coming down in 2024. Before you get too excited, be aware that the Federal Reserve may not do anything until after the Presidential election in November.
4 - Are bidding wars still common for hot properties?
The list / sell % dropped considerably in Q2 of 2024.
Translation: homes are selling for closer to their asking price than in previous cycles. Here’s what’s going on - sellers / listing agents have more comps data and inventory scarcity to justify a higher asking price.
To use another economics term, the market is now testing the elasticity of buyer demand. In plain English, sellers are pushing the envelope with their opening listing price.
Here are some numbers to back up my theory.
Single family homes under $1M in Ann Arbor:
2022 Q2
379 - homes sold
$304 - avg $ per sq ft
5.54% - avg % above listing price
2023 Q2
331 - homes sold
$310 - avg $ per sq ft
4.29% - avg % above listing price
2024 Q2
215 - homes sold
$335 - avg $ per sq ft
2.19% - avg % above listing price
What does this mean for buyers / sellers?
Buyers: rely on recent comps to help determine fair market value before offering above the asking price. And don’t be afraid to submit a bid at exactly asking price or just slightly above asking in the first weekend - you might be the only offer.
Sellers: be realistic about how your home stacks up against the one that sold down the street. You might end up with more leverage on the backend of the transaction if you go with a less steep asking price and attract multiple bidders. It’s important to have safeguards in place to ensure a smooth inspection, and appraisal process.
5 - What new development are you most excited about in the area?
Progress on the B2B trail system over the last two years has been phenomenal, with the most exciting segments coming in late 2024 / 2025.
In particular, the Barton Bandemer Tunnel, which will pass under the railroad line connecting Bandemer Park to Huron River Drive along the B2B Trail.
A bulk of the project funding has come from Huron Waterloo Pathway Initiative, a nonprofit dedicated to the development of the B2B.
As for the myriad of high-rise developments set to erect downtown, I agree with M-Live’s Ryan Stanton that trying to keep track of them all is a challenge. Here’s his latest piece about the last twelve projects in the works.
6 - Wait, did you switch brokerages?
Yes! I’m thrilled to announce that I joined Berkshire Hathaway Homeservices this summer. After nearly two years of working as a team agent for The Bouma Group, it was the right time to take the next step in my career as a independent agent.
This also reunites me with my former showing partner, Trevor McIlwaine, who is now the sales manager for BHHS. Trevor taught me everything I know about houses, negotiating deals, and how to be a good realtor.
So, what does this mean for clients?
As you might expect from the name of the brokerage, the resources and tools provided by Berkshire Hathaway Homeservices are truly unmatched. The move to BHHS puts my client in a stronger position to win in the market.
You’ve now reached the end of this very lengthy Halftime Report.
What did you think? All feedback is welcome.
