Fun, pricey by Lisa S. at InsiderPages
Kerrytown has a great college town atmosphere and is truly a pleasure to peruse on a lazy afternoon.
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It is very gay-friendly, and has a variety of eccentric gift vendors, food vendors (during the farmers' market), and other related sorts of things.
Unfortunately, it's pricey even for a pricey town like Ann Arbor. Either be prepared to come away empty-handed, or spend a lot of money to come away with something to show for it.