While March Madness is typically a basketball reference, the phrase holds meaning when looking at our local real estate market as well.
As we’ve started to settle into the spring housing market “madness” is quite possibly the best term to describe the current state of what we are seeing.
The combination of low inventory (the number of homes available for sale) and a strong economy have us firmly planted in a seller’s market in which the best homes are seeing fierce competition from interested homebuyers. (more…)
In the 1993 movie classic “Groundhog Day” we watched Bill Murray wake up at 6:00 AM every day only to find he was living the same day over and over again. As we turn the page on another year and look ahead at the 2018 real estate market I can’t help but feel a little bit like Murray.
It feels like we’ve been here before.
Heading into 2018 the big story is low inventory (the number of homes available for sale) followed up with low interest rates, lagging construction, rising prices, and a powerful economy. But we’ve seen this before. In fact, the only real difference between 2018 and each of the previous few years may be that our alarmingly low inventory is at it’s lowest point throughout this time period. (more…)
We’re sure you’ve heard the stories.
Ridiculous offers by desperate buyers competing over the one house that seems to be available in today’s market.
In talking to homeowners and interested homebuyers there seems to be a number of common misconceptions, half-truths, and myths about the state of our local housing market.
We’re here to address these misconceptions and add some clarity to the wild Dane County housing market of 2017:
Misconception #1: Everything is Selling Overnight and For Way Over Asking Price
After a rollercoaster year in 2016 in which we saw inventory levels hit rock bottom, interest rates stay low, and record sales in Dane County there are many questions as we being to tiptoe into 2017.
Stark Company President Dave Stark outlines a number of factors that will affect our 2017 market in the most recent edition of the company newsletter found here, starting with the fact that our inventory levels are 27% below where they were a year ago.
With so few options available, and rates still relatively low, basic economics come into play and we can see that demand heavily outweighs supply. In other words, we’re in a strong sellers market.
So if there aren’t many homes to choose from, when should you put your current house on the market?
Oregon’s Hot Market | Coming Soon Properties | We’re Hiring
It’s no secret that the biggest story in the housing industry since the election has been the rapid rise of interest rates.
As recent as late October getting a 30 year mortgage at 3.5% was a realistic option. Almost immediately following the November election we saw rates jump and quickly hit 4%. As of today (12/6/16) we are currently sitting around 4.125% as the common rate for a 30 year mortgage.
But what does that really mean? What effect can a small change in rates mean for today’s home buyer?
A few years ago I read the article “Where Even the Middle Class Can’t Live Anymore” by Emily Badger and grew curious about how local families were being affected by rising home prices.
I began to wonder, “Where Can Dane County’s Middle Class Afford to Live?”
Affordability takes into account a variety of factors so using the local median income of $83,900 with an online calculator to estimate home affordability I determined the maximum purchase price for the majority of Dane County residents to be around $375,000.
Keep in mind this is the maximum, not a recommendation, as this number was based around the assumptions of 20% down (not easy for many middle class families), 3.75% interest rate, $7500 annually in taxes, annual home insurance of $700, roughly $500 per month in additional debts, and no more than 30% of monthly income going towards housing costs. (more…)
As we head into what is typically considered the slow season in Dane County real estate, we may be left with more questions than answers when it comes to responding to the question of “How’s the market?”.
In our last quarterly market review Stark Company President, Dave Stark described the state of the market as “wild”. With the frantic pacing and unpredictable nature we saw through much of the spring, this was certainly a good term to characterize Dane County real estate in 2016. But where does that leave us heading into 2017?
Without a crystal ball we can’t speak in definite terms about what to expect, but we certainly know the following 3 factors will have a major impact on overall market health entering the new year.
“How’s the market?”
When you’re in real estate it seems every conversation starts with that question. The problem is, that it’s not exactly an easy question to answer. In fact, the best answer really is, “it depends”.
It depends. Are you buying or selling? What price range are you in? What’s the location? Depending on how you answer these questions will affect the answer you get.
Today’s market is up and down and all over the place depending on what you’re trying to accomplish. However, generally speaking we can define today’s market as quick, active, and in the words of Stark Company President Dave Stark “wild”.
Let’s look at a few factors that affect the current pace of today’s local market… (more…)
After spending much of the last 2 years looking at pace of sales and predicting whether or not we would break the previous record for sales set in 2005, this year’s story is much different.
In 2016 the market discussion is all about lack of inventory and how strongly we are currently tilted to favor sellers.
Here is your monthly market update for the Oregon area (53575 zipcode). For more information about market trends give us a call or sign up for monthly notification in your area HERE.
Oregon Market by Price Point
5 active homes (View Homes), 1 sold last month, 1.3 months of inventory. This market typically runs with 10+ active properties but the last 3 months have been in the single digits. This price point remains a great environment for sellers. (more…)
Don’t be fooled by the downward trend in homes sold. Dane County is a hot market today and strongly favoring home sellers. Seasonality will play a little with this months numbers, but available homes for sale dropped 5% despite a 25% increase in listed homes. We have a lot of homes out there today with accepted offers just waiting to close.
For more information about market trends give us a call or sign up for monthly notifications in your area HERE.
For access to all active listings start your search with us HERE. (more…)