Oregon, WI Housing Market Update - April 2022

April 2022 Housing Market - Oregon, WI

Hey there, Oregon. Jeff Minter here, team lead for the Minter Team at Realty Executives Cooper Spransy and fellow Oregonian, Oregonite; I should really know that. Anyway, let's get diving into the numbers and see what's going on in our local real estate market.

I've been doing this in town for 10 years now. And quite frankly, this market has been about as wild as we have seen. And I could have said that last year or the year before, and maybe even the year before that. I know it sounds like a broken record, but we really, truly are at a unique spot in our market's history.

To see what's going on, let's take a look at some of the numbers that we've hit so far this year. While numbers are still trickling in, here's where we're sitting today.

Through March in Oregon, we've only seen 33 houses come on the market. That is the lowest number we've had in at least the last five years and it is a 30% decrease from last year's low of 47. This has been our biggest issue driving today's market trends - there's simply not a large enough supply of homes available. On the opposite side (demand), we've had 41 houses sell so far this year. That's a 24% increase and the highest total over the last five years. 

So when we look at this year, we are at our lowest point with new houses coming on the market, and our highest point with houses going off the market over the last five years. As of today (when filming this), we currently only have eight houses available on the market without accepted offers - only two of those are under $400,000. So with this madness, how do you win in today's market?

The reality is, buyers can still win with a long term vision in mind. Remember, mortgages stay steady and predictable, unlike the rental market. And that long term stability can be beneficial. I hear a lot of people concerned about entering the market as buyers, because of the competition and the concern that there's going to be a crash. The reality is, most home buyers today are not getting in with low down payment amounts or risky loans, which is very, very different than what happened prior to the last crash.

Today, buyers are winning with more money down - higher down payments - which means more built-in equity. We will need to see a drop in home values unlike anything we have ever seen around here for most people to end up underwater, or owing more on their house than what it's worth, like we did in the last crash.

Buyers competing need to be aggressive, fast and prepared. You need to make sure you have a realtor on board with you to get you moving right away, and your lending has to be totally locked up with a local reputable lender. Make sure you're working with both a realtor and a lender that other people want to work with. That name on the offer and that name on the preapproval can be the difference between you getting the house or losing out to another home buyer. It's a huge deal.

And buyers should not be negotiating like their parents did 30 or 40 years ago. That's never going to fly. Instead, focus on the big picture. You've fallen in love with this house. Think about what it is that you're willing to do to make it happen. Remember, the asking price is just that, it's an ask, it is not the value of the home. So don't be afraid to stretch a little bit, and go over if that's what it's going to take to get you to where you want to be.

Your alternative is simple, continue paying rent, and five years from now, end up with no more equity or built in value than you have today. I expect to see home prices continue to rise for the next few years. Our largest generation of home buyers are just entering the stage where they're going to be buying houses. Our demand's not going to change. So as we continue to see prices go up, waiting for next year, or the following year, or the following year, is just going to increase your monthly payment.

Sellers, huge information for you right here. Listen, Oregon operates differently. We are not Madison. Yes, like the rest of Dane County, Oregon is in a seller's market. And yes, a properly priced home should get a lot of traffic and competitive offers. But your best bet as a home seller is to still hire somebody to help you sell your home that understands the local market and the little nuances that affect things around you.

When I look at the agents who live in town and have the biggest impact on our local real estate market, versus the rest of the agents out there, I find some really interesting information. Oregon agents sell houses twice as fast, Oregon agents are more likely to get you competitive offers, and Oregon agents sell houses for twice as much over asking price as the rest of the agents combined. In other words, using somebody who's dialed into the Oregon market, who understands the differences in our neighborhoods and our local trends, and isn't trying to compare it to what's going on on the west side of Madison, because they know it's different, those agents are going to help you sell faster, with more competition and for more money.

Our team would love to help you. We think we'd do a great job, but I want to acknowledge the fact that we have some great people in town that do great work, and we're all operating differently, which means no matter what you're looking for in a realtor, there's somebody local who understands the market, who's going to be able to do a bang up job for you and fit your goals, your needs, your personality, and everything else you're looking for. Shop local. Remember local agents are spending that money in Oregon all the time. We're supporting our local businesses, supporting our local nonprofits, supporting kids activities. So not only is a local agent going to help you sell faster and for more money, but a local agent is going to do better for the community, because of that. 

The other thing sellers really need to know is: don't let the market do the work. The sellers that are really hitting the jackpot and taking advantage of today's market dynamics are making sure that they are putting in the work - their house looks fantastic and their realtor is marketing it the way it deserves to be marketed, to get the most eyes on the property. They're not just putting it on the MLS so that it trickles out to Zillow to be stumbled upon; they are putting it out there so people can find it beforehand, before it even hits the market, and getting thousands of views on your house. 

Thanks for checking in! To stay on top of other local trends, make sure you follow us on Facebook. If you have questions about your journey, my team would love to help. I will make sure you're taken care of. Let's talk soon.