If you’re planning to move, it’s always good to keep up with what’s happening in the real estate market. Home prices are still high in most areas across the country, but they are beginning to fall in a few areas that were heavily affected by the pandemic market boom. Even if we’re still unsure of what this might bring, moving now rather than later could be safer. There are three points about the housing market here in the Madison, Wisconsin, area that I want to share to help you plan your summer move.
1. Severe lack of inventory. Housing inventory is low both nationally and in the Madison area. We currently have around 0.91 months of inventory without an accepted offer. There are currently 370 active properties, 180 of which have offers, leaving 190 homes and condos for sale.
People are hesitant to sell their homes since they are locked into low interest rates with their present mortgages. The decision between an extra garage stall, an extra bedroom, or a bigger backyard requires consideration against their current interest rate of approximately 2.75% to 3%, as opposed to current rates of around 7%. It’s painful to see that there is a 10% additional charge for each percentage point rise, which is very expensive.
“You can still get a good deal this summer, but there’s no telling for sure in the coming months.”
2. Buyers are very motivated. I see serious homebuyers all around the country right now, despite high interest rates, because property prices haven’t dropped to compensate. If someone is considering buying a property right now, it is because they need to relocate. This means you won’t have to deal with window shoppers or do as many showings before finding someone ready to offer you an attractive price on the terms you like.
3. Pricing and condition. Just because buyers are motivated now does not mean they will tolerate overpriced or low-quality homes. Though they may be prepared to pay a premium for a well-maintained property. It is best to work with your agent and make minor repairs before listing your home for sale. Work together to determine a price that is appropriate for your local market—one that is neither too high nor too low. The most important thing is to get the price right.
You can still get a good deal this summer, but there’s no telling for sure in the coming months. If you have questions about where our market is headed or are interested in selling your home, call me at (600) 821-2574 or send me an email at ShawnKriewaldt@KW.com. I’d love to hear from you.