If you are thinking about buying or selling in Ann Arbor this year, now is a great time to get familiar with how things are shaping up. The local market has its own rhythm, and while it does move with broader national trends, Ann Arbor’s demand, inventory, and pricing dynamics make it feel a bit different from other parts of the country. Let’s break down what you need to know.

Prices Are Still Holding Strong

Across Ann Arbor, home values continue to impress for a city this size. According to recent housing metrics, the average home value hovers around $500,000, with a modest year-over-year increase of roughly 3 percent. That reflects steady demand even as the pace of price growth slows compared to prior years.

Some local data also show that median sale prices dipped slightly year-over-year in late 2025, settling around the low-$400,000 range in certain measures. However, prices remain elevated compared to much of Michigan, and Ann Arbor still outpaces many nearby markets in overall value.

For sellers, that means you are likely still in a strong position if your home is priced right and shows well. For buyers, it means that while you may find some negotiating room, affordability is still a real consideration.

Inventory and Market Pace

One of the defining features of this market right now is moderate inventory with gradual improvements. The number of homes for sale is higher than just a couple of years ago, which gives buyers a few more options. But don’t expect a flood of choice just yet. Many homeowners are still holding off on listing until they feel confident about timing and pricing.

Homes are generally staying on the market a little longer than last year, suggesting a calmer pace. Buyers may find that they have more time to make decisions, and multiple offers are not as common as during the peak seller’s-market years.

What Buyers Should Expect

If you are in buyer mode this year, here’s what to keep in mind:

• Expect competition for move-in-ready homes. Well maintained properties in desirable neighborhoods still attract attention quickly.
• Mortgage rates remain a factor. While rates have eased slightly from earlier highs, affordability continues to shape search strategies for many buyers.
• More choices than recent years. With inventory slowly increasing, buyers may feel less pressure to waive inspections or rush offers.
• Renters and investors are watching. With median rents still strong, some investors see value in rental properties if that fits your plan.

Patience and a thoughtful approach to budgeting will go a long way.

What Sellers Should Expect

For homeowners thinking about selling, here’s how the market looks:

• Pricing still matters. Homes that are priced realistically relative to recent comps and market conditions tend to attract more interest.
• Showings and staging still work. Prepared homes draw better offers and often close more smoothly.
• Market timing is less frantic. You won’t see the blitz of offers in the first weekend that we did in 2021-2022, but you will most likely find buyers if your home checks the boxes buyers care about.
• Renters and investors are active. There are buyers out there who see value in Ann Arbor for both living and investment, especially if the property generates rental income.

Looking Ahead

Experts suggest that 2026 could bring slower, more sustainable price growth than we saw in recent years. Inventory is expected to remain tight overall, but not as constrained as in past cycles. Mortgage rates also may soften just enough to encourage new buyers off the sidelines.

In practical terms that means:

• Buyers might see affordability improve little by little.
• Sellers should plan their list prices with realism and an eye toward current comps.
• Both sides benefit from working with local professionals who understand Ann Arbor’s unique market patterns rather than relying on broad national headlines.

Final Thoughts

Ann Arbor’s housing market remains resilient, but it is gradually moving toward balance. Prices are stable, inventory is slowly improving, and both buyers and sellers can find opportunities if they are prepared and informed.

For buyers, preparation is key. Know your budget and priorities before you start. For sellers, thoughtful pricing and presentation matter more than ever.

If you want specific numbers for your neighborhood or home type, I can pull those market insights for you too. Just let me know!