Although appraisers do not run search parameters for their comparable sales by price range, occasionally running market information by price can help isolate where the shortages and excesses are. Take for example, this information from 9/18/18, run between 8 – 8:30 PM through the Ann Arbor Area Board of Realtors.
This is a very quick snapshot of how many sales occurred in each price bracket shown within the Ann Arbor school district compared to what was available for sale, and those that were already reported under contract (P&C). The CTLR column refers to the contract-to-listing ratio, simply put the number of properties under contract compared to the total number listed for sale at any given time. The last column relates to how many months supply there is based on the last 12-months sales in that price bracket.
Not unsurprisingly, the lowest priced houses showed the greatest absorption into the market and the lowest supply. Up to $500,000 the market showed good absorption with over 37% of the houses on the market under contract and less than a three month supply, and over $500,000 the absorption rate drops (other than the anomaly of the $801,000-$900,000 range) and months of inventory increases.
This is good information to consider, as the narrative in the news may be that we are experiencing a severe housing shortage, but if it is broken down into a price range, what shows is a housing shortage under a certain price point, and excess inventory over that price point.