Ann Arbor Michigan Real Estate

2008 Annual Report

The “Big” House

Reasons for Optimism

U. of Michigan Purchase of Pfizer Facility

5,000 New Jobs in County in Next 2 Yrs.

Washtenaw Most Solid County in State, will be the First to Rebound.

Many Small and Growing Biotech, Healthcare, and Internet Firms.

Ann Arbor SFH Sales in Units -21.1% Since 2005

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500

1000

1500

2000

2500

3000

3500

4000

2004 2005 2006 2007 2008

SFH Average Sales Price (County) -19.7% Since 2005

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2004 2005 2006 2007 2008

Ann Arbor Area SFH Avg. Sales Price -15.4% Since 2005

$260,000

$270,000

$280,000

$290,000

$300,000

$310,000

$320,000

$330,000

$340,000

$350,000

2004 2005 2006 2007 2008

Washtenaw County Foreclosures

0

200

400

600

800

1000

1200

1400

1600

2002 2003 2004 2005 2006 2007 2008

Historic Home Sale Distribution

Traditional

Leases

Bank Owned

Short Sale

Traditional = 90.5%

Current Home Sale Distribution

Traditional

Leases

Bank Owned

Short Sale

Bank Owned, Lease & Short Sales = 84%

How This Impacts Your Homes Value

Bank Owners in “Fire Sale” Mode. Houses sell at below market value. Appraisers appraise based on sales

price, they no longer separate out foreclosure/ non-foreclosure sales.

Below market sales pulls down all values

What This Means for 2009

Your homes value is 20% less than it was 2 years ago.

There will be more foreclosures in your neighborhood.

If you don’t have to sell, don’t sell If you want to buy, buy.

Bundesen Team

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