Ann Arbor Real Estate Market Trends: What Buyers and Sellers Should Know in 2025

Amelia Stevenson Howard
Jul 24
5 min read

The Ann Arbor real estate market continues to be dynamic and full of opportunities as we move through 2025. Whether you’re thinking about buying your first home, selling your property, or investing in Ann Arbor real estate, understanding the latest trends can help you make informed decisions. Here’s what buyers and sellers should know about the Ann Arbor market this year.

Steady Demand Amid Growing Interest

Ann Arbor remains one of Michigan’s most desirable cities to live in, thanks to its vibrant university presence, thriving local economy, and beautiful neighborhoods. In 2025, demand for homes continues to be strong, particularly in neighborhoods close to the University of Michigan, downtown Ann Arbor, and popular suburbs.

Buyers are actively looking for homes that offer modern amenities and easy access to parks, schools, and community hubs. At the same time, sellers are benefiting from a market where inventory remains somewhat limited, meaning well-priced homes often sell quickly.

Pricing Trends: What’s Happening?

Home prices in Ann Arbor have seen a moderate increase in 2025 compared to previous years. While the rapid price surges of the last decade have slowed slightly, home values remain strong. This is good news for sellers aiming to maximize their returns but requires buyers to be prepared with competitive offers.

The median home price in Ann Arbor is hovering around [insert current median price — you can research or estimate], reflecting steady appreciation without a drastic bubble. It’s important for buyers to work closely with realtors to identify fair market values and avoid overpaying in a competitive environment.

Mortgage Rates and Financing in 2025

Mortgage interest rates have fluctuated recently, influencing buyer behavior. In 2025, rates are slightly higher than the historic lows seen a few years ago, but still relatively reasonable. Buyers should shop around for the best rates and consider locking in mortgages early, especially in this competitive market.

Sellers can also benefit, as stable mortgage rates maintain a solid pool of qualified buyers.

Neighborhood Spotlight: Where to Buy and Sell in Ann Arbor

Old West Side and Burns Park remain popular for buyers who love historic charm combined with community atmosphere.
Downtown Ann Arbor offers excellent condos and townhomes, perfect for young professionals and university affiliates.
Suburbs like Pittsfield Township and Scio Township attract buyers looking for more space and affordability while staying close to the city.

Sellers in these areas are seeing strong interest, especially from families and professionals seeking lifestyle convenience.

What Sellers Need to Know

Staging and Presentation Matter More Than Ever: Buyers expect move-in-ready homes with modern features.
Pricing Strategically is Key: Overpricing can slow sales in this steady but competitive market.
Leverage Local Market Expertise: Working with an experienced Ann Arbor realtor can help you price your home right and market it effectively.

Tips for Buyers

Get Pre-Approved Early: This will make your offer more attractive.
Be Ready to Act Quickly: Popular homes get offers fast, so have your financing and inspections lined up.
Consider Future Growth: Look for neighborhoods with planned developments or good schools that will keep your investment strong.

Ann Arbor’s real estate market in 2025 remains vibrant and full of opportunity, but it’s also competitive and requires smart strategies from both buyers and sellers. Whether you’re entering the market or planning to sell your home, staying informed on trends and partnering with local experts can make all the difference.Ann Arbor Real Estate Market Trends: What Buyers and Sellers Should Know in 2025