Low Demand, High Supply in Ann Arbor.
Ann Arbor, Michigan is seeing a supply/demand mismatch. New construction has put a "cap" on prices of existing homes. Meanwhile, demand is just low. Where are the animal spirits? I guess with the Michigan consumer confidence index being so low, people just don't feel like overspending on real estate. Again, interest rates are still very low. As interest rates rise, the supply/demand mismatch will only worsen, putting increasing pressure on SELLERS!