Ann Arbor Real Estate Market Report

Executive Summary

The Ann Arbor real estate market continues to demonstrate strength heading into 2026, with inventory tightening, prices holding steady, and homes selling quickly. December 2025 data reveals a market that favors sellers while remaining accessible to qualified buyers. For prospective agents considering a career in real estate, this market presents significant opportunity.

Key Takeaway: Ann Arbor's market fundamentals remain healthy, with median home prices at $473,990 (sold) and $549,000 (active listings), down slightly from summer peaks but stable year-over-year.

Market Overview: A Seller's Market with Balanced Conditions

The Ann Arbor real estate market is currently positioned as a seller's market, though trending toward balanced conditions. This classification reflects the relationship between supply and demand, with fewer homes available than motivated buyers seeking to purchase.

Key Market Indicators (December 2025)

What This Means: With only 1.78 months of inventory, homes are selling faster than new listings are coming to market. Sellers are achieving 98.8% of their asking price—a strong indicator of market demand. The median time on market of 27 days suggests homes are moving quickly for qualified sellers.

Inventory Dynamics: Tight Supply Driving Opportunity

One of the most significant trends in the Ann Arbor market is the declining inventory level. December's 1.78 months of inventory represents a 28.51% month-over-month decrease, indicating that homes are selling faster than new properties are being listed.

To understand what this means: A healthy real estate market typically maintains 4-6 months of inventory. At 1.78 months, Ann Arbor is experiencing a supply-constrained market where competition among buyers is elevated, and sellers have significant negotiating power.

For Sellers

The current market conditions are favorable for sellers. With inventory tight and buyer demand steady, homes priced correctly and marketed effectively sell quickly at strong prices. The 98.8% sell-to-list price ratio indicates that sellers who price realistically are achieving their asking price.

For Buyers

While inventory is tight, the market remains accessible for qualified buyers. The 27-day average time on market suggests that homes do become available regularly, and patient buyers with financing in place can find opportunities.

For Real Estate Agents

The Ann Arbor market presents significant opportunity for agents. With inventory tight and sales activity steady, there is consistent demand for professional representation. Agents who understand the market, have strong marketing skills, and can help sellers price correctly will thrive.

Looking Ahead: 2026 Market Outlook

Based on current trends, the Ann Arbor real estate market is expected to remain strong in 2026. Several factors support this outlook: Continued population growth in the Ann Arbor area, strong University of Michigan enrollment, tech industry presence, and limited new housing supply all support continued demand.

Bottom Line: Ann Arbor's real estate market is well-positioned for 2026. Sellers should take advantage of current favorable conditions, while buyers should remain patient and prepared to act when opportunities arise.

Your Next Steps

Whether you're considering selling your Ann Arbor home, looking to purchase, or exploring a career in real estate, understanding market conditions is essential to making informed decisions.