Growing Inventory Despite Fewer New Listings

Washtenaw County inventory continues to rise, even as fewer new listings are coming to market. Active listings are up 8% compared to a year ago, increasing from 283 to 307.

At the same time, monthly new listings have declined year-over-year each month since October, including an 23% drop last month.

Inventory grows when more listings enter the market than leave it. Properties leave the market when they go under contract, expire, or are withdrawn. Over the past year, listings have generaly remained on the market longer, and fewer have expired or been withdrawn (down 35% /55 units). As a result, even with fewer new listings, inventory has continued to build.

Market times have increased. More notably, homes that sold last month averaged 50 days on market, while active listings are now averaging 92 days-highlighting a widening gap between homes that sell quickly and those that sit.

Move-in-ready homes continue to sell quickly, and 56% of last month’s sales were at or above asking price. In contrast, homes that are overpriced or need updates are sitting longer and increasingly requiring price reductions. Buyers are prioritizing convenience—many prefer to pay more upfront and avoid the time, cost, and uncertainty of post-purchase improvements.

As the year moves into the second half, the pace of new listings typically slows. Because the best homes sell quickly, the remaining inventory becomes increasingly weighted toward properties that require price

adjustments or updates. This contributes to longer market times and further inventory buildup which carries over into the new year.

Sellers with homes sitting on the market should recognize that either pricing or presentation is missing the mark. At the same time, the continued shortage of move in-ready homes presents an opportunity for well-prepared listings to stand out. With a large pool of buyers still waiting, there is a window of opportunity to bring new listings to market early. Buyers should be prepared to act quickly on desirable homes, but may also find opportunities among properties that have been on the market longer.

As seen in the new listing chart below, expect both the quantity and quality of inventory to increase over the next three months as this year’s spring listings come to market.