Here is everything you need to know about the Dane County market in August.

What is happening with the Dane County market? Things are changing in our local real estate, and we have the latest data for you here today.

In our entire market, we’ve seen sales decrease for the seventh consecutive month by 6%. In Dane County specifically, we’re down by 7%. This has helped to stabilize prices in the county, which are holding steady at just below $400,000. That’s 12.6% higher than it was in 2021. Year to date, the average price is $428,488—an increase of 10.2%.

While these prices have been decreasing, inventory is still a pressure point. Over the last year, inventory has decreased. In Dane County alone, we’ve seen a decrease of 25% in new listings from August 2021 to now. From January 2021 through today, available inventory has decreased more than 11%. We’re seeing a low availability of only about a month of inventory across Dane County. In contrast, we’d expect to see about six months of available inventory in a balanced market. This implies that we are still in a great seller’s market.

“We’ve got the latest data for you here today.”

 

Interest rates have also been increasing.* Today, we’re sitting at 6.875% for a 30-year fixed mortgage—quite high compared to our previous rates of just under 3%. 

The average number of days on the market was about 15 instead of the 14 days in August 2021. We think this trend will continue, with properties staying on the market longer.

Thinking about buying or selling and need my help? Please don’t hesitate to give me a call or email. I’d be happy to answer any questions.

* Note: Interest rates have subsided to 6.5%. Interest rates are volatile and since shooting we have seen a slight decrease.

You have options to safeguard yourself from fluctuating rates.


The Federal Reserve has increased rates multiple times this year so far and will continue to do so throughout 2022. That means if you’re in the process of buying a home, the rate your lender quotes could increase sometime in the future. So what happens if interest rates increase after you’ve already gone under contract? Is there any way to protect yourself?

First of all, when we’re writing an offer with a financing contingency, we typically determine whether your rate is fixed or variable and what terms would allow you to cancel the contract. In a rising market like this, you should get a mortgage rate lock as soon as possible in the process to prevent your rate from increasing further. Some lenders have products that let you lock before your offer gets accepted, but you may have to pay a higher interest rate to do this.

 

“Float-down options typically come with an extra cost in exchange for a lower rate.” 

 

Second, ask your lender if they provide float-down options, which prevent your rate from rising but allow it to lower if market rates begin to fall again. Be advised, though, that float-down options typically come with an extra cost in exchange for a lower rate. 

If you have any questions or would like to learn more about mortgage rate locks and float-down options, don’t hesitate to give me a call or send an email. I’d be happy to help you.

An update on the Madison housing market and what it means for you.  

The national housing market is changing drastically—so what does that mean for local markets? Today I have an update on the market specifically in the Madison, Wisconsin, area. Overall, we have seen days on market, prices, and inventory increase, but the number of showings has decreased. 

One huge thing is that rising interest rates have put pressure on affordability. Every 1% increase in interest rates raises your monthly payment by about 10%. Plus, rising prices aren’t just affecting real estate; the cost of groceries and gas are climbing too. This means the cost of living is going up, which is putting a strain on many buyers’ affordability. 

Secondly, there are around three weeks of available inventory in our area, which is more than just a few months ago. However, even though inventory is rising, it’s still historically low—a balanced market has about six months of inventory. Between this and the rising costs, it is clear that we are still in a seller’s market. 

If you want more information about what the market is doing now, or if you’re thinking of buying or selling a home, please reach out to me by phone call or email. I’d love to chat with you and discuss the specifics of your situation! 

 

How the supply and demand situation is affecting the Madison market.

Today I’ll update you on the state of the real estate market in the Madison area. Things are moving very quickly in our market, and we have a very low supply of available houses. The south-central Wisconsin MLS has calculated that we have about 0.5 months of supply. A normal market has about six months of supply.

This market really favors sellers. Many of the listings out there have multiple offers coming in, and they often have very few if any contingencies. Many are also cash offers. Traditionally, spring is the best time to list your house because buyers are anxious to get out there once the weather gets nicer. This is going to cause demand to double in the near future. Now is a good time to list your house. 

 

“This market really favors sellers.”

 

In January, we saw about 11% fewer houses get listed than the previous January. We also saw about 10% fewer sales occur last January than we did in January 2021. This is partly due to there being fewer houses available to purchase. Lastly, interest rates are increasing and are currently almost at 4%. The Federal Reserve is talking about raising the discount rate by 25 to 50 basis points, which will put pressure on mortgage rates and home sales.

If you have any questions, reach out to me at (608) 212-5743. I look forward to hearing from you.

Looking to sell a Dane County home? Get a FREE home value report here

Today’s Madison market update is geared toward what sellers need to know.

Today I’m discussing what happened in our Madison area real estate market in 2021. I’ll also talk about how that affects our current market and what it will mean if you’re considering selling this year. Based on current conditions and what’s likely to come, now may be the best time to sell your house, and today I’ll explain why. 

Feel free to watch the full message above, or use these timestamps that will direct you to various points in the video:

0:00 — Introduction to today’s topic

0:58 — Number of homes on the market

2:05 — What prices are doing right now

2:35 — What interest rates are doing right now

3:03 — What to expect from the second-home market

3:58 — What all this means for you

4:34 — Wrapping up today’s topic

If you’re ready to get the selling process rolling or have any questions, give me a call or send an email. I would love to be your real estate resource.

Here’s a breakdown of the latest stats and trends in Madison real estate.

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Today I have a brief market update covering a few key stats and a few surprising trends.

Let’s start with inventory levels. We haven’t seen them this low in quite some time. At the end of October, we had fewer homes for sale than we’ve had in over a decade.

On our home search site, you can get stats for each market we cover from Middleton to Verona. For the purposes of this video, we’ll focus on the latest numbers for Madison.

The median days on market for sold homes is just six.

Currently, there are only 377 active listings, and 223 of them are pending. That means there are just 154 homes available for purchase right now, which equals 0.49 months of inventory. For reference, a balanced market has six months’ worth of inventory. The average days on market of 52 is slightly misleading because there are some properties on the market that are overpriced and causing that number to jump. The average days on market for sold properties in Madison is just 21, and the median days on market is just six.

As for home prices in Madison, the average sale price over the last 12 months is $356,000, and the median sale price is $330,000. With low inventory and strong demand, this is a great market to sell in. The low interest rates make buying a home a strong move as well.

If you have any questions about the market, these stats, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.  

Here is what’s going on in our local and national housing markets.

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The National Association of Realtors sees the surge in home prices that we’ve experienced over the last year as an anomaly that was driven by pent-up demand due to the pandemic and low interest rates. Now that things are starting to settle down again, we’re seeing last year’s trends ease as well. NAR chief economist Lawrence Yun said, “The housing sector is clearly settling down. Home sales are trying to return to a normal equilibrium after that big surge we saw last year.

Yun further explained, “Sales slipped a bit in August as prices rose nationwide. Potential buyers are out and about searching but much more measured about their financial limits and simply waiting for more inventory.” Newly constructed home sales are up 1.5% from August while existing home sales dropped by 2%. Both figures are still higher than their pre-pandemic counterparts.

The median price of a home nationally now sits right at $375,000. That’s an astounding appreciation of 15% from last year. The average days on market is 17 days. These quick sales are also due to the continued lack of inventory. A healthy market should have six months of inventory, but right now we have 2.6 months. That’s down 1.5% from July and 13.4% from this time last year.

Here in Dane County over the last 30 days, we’ve had a 16-day turnaround from when a home goes active on the market to when it goes under contract. The median price of $350,000 has remained pretty constant over the last few months.

Economists are hopeful that we’ll see more inventory reach the market soon.


BCA Research puts it like this:

“While we expect growth momentum to ease, temporary forces due to the Delta variant accentuated the moderation in activity between August and September. The reports note that health concerns are weighing on the service sector. Similarly, labor supply and material shortages are restraining manufacturing output and pushing up the backlog of work. Meanwhile, supply chain disruptions and rising transportation costs are raising price pressures. Higher input costs are being transferred to clients in the form of an increase in output prices.”

All of these factors are coming together to hurt affordability. Despite the market starting to cool off, the percentage of buyers who were buying for the first time dropped to 29%, a low we haven’t seen since January of 2019. However, economists are hopeful that we’ll see more inventory reach the market soon. The chief economist at Keller Williams, Ruben Gonzalez, said, “Overall, we think home sales will remain strong going into next year, but we should see inventory levels continue to slowly trend toward more normal levels and home price appreciation begin to slow over time.

If you’re thinking about selling your home, you haven’t missed your chance. This is still a seller’s market, and you can net a great profit from your house. 

Enter your address here to instantly calculate your home’s value.

If you’d like something a little more concrete flavored by local data and trends, or if you have any questions, feel free to reach out to me directly at (608) 212-5743.  

Here are the trends we’re seeing in our local and national housing markets.

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In today’s market update, we’ll be going over the changes we’ve seen recently in both our national and local markets.

Throughout the country, home prices have been accelerating due to the combination of fierce buyer competition and low home inventory. However, sales have declined somewhat over the past few months. Locally, we’ve seen a 2.2% year-to-year increase in sales in Dane County, with a 12.9% increase in median home prices. In other words, median home prices rose from $310,000 to $350,000 in a year.

Experts believe that price growth will slow down by the end of summer as more homes begin hitting the market.

There’s an affordability issue for many first-time homebuyers. Though our current low interest rates help keep things a little more affordable, the cost of buying a home is simply too much for many. Around half of the homes sold are still selling for more than their listing price—locally, they sell for around 102% of the list price. According to the National Association of Realtors, the median sales price for existing homes rose 23.4% from June 2020 to June 2021. 

Fortunately, experts believe that price growth will slow down by the end of summer as more homes begin hitting the market. However, a broad decline in prices is highly unlikely. This month, the total market supply has increased, and we’ve also seen a shift in listing activity. For the first time since January 2021, the number of sales is higher than the number of new listings. This may be an anomaly, but some believe it’s due to news of the COVID-19 delta variant. 

The national market is currently being driven by three key factors. First, millennials—the country’s largest generation—are enlarging their families and buying homes. Next, mortgage rates have been falling, and low rates drive home buying activity. Finally, the pandemic has caused many to move out of the city and into more suburban environments where they can work from home.

For the fifth consecutive week, 30-year fixed-rate mortgages have been below 3%. Meanwhile, 15-year rates have hit record lows. Home builders are capping sales to manage their costs and ensure they don’t promise more homes than they can actually build.

If you’re thinking about buying or selling a home and would like to learn more about our current market, feel free to reach out to me. I look forward to hearing from you soon.

Here’s why we’re not in a real estate bubble.

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Home prices across the U.S. are swelling, and many anxious buyers and sellers are worried about a market crash. Today’s market, however, bears little resemblance to the one that led to the crisis of 2008. 

Market watchers note that the median sale price was $313,000 in February, which was a 16% increase compared to the year before, but whatever happens at the end of this frenzy likely won’t simulate what happened during the last bubble. Nationwide, homes are selling in about 20 days on average. The average for 30-year fixed mortgages, meanwhile, is still near a record low. Things feel pretty hectic right now, but the market will adjust to a more natural ebb and flow we see in typical market cycles. 

Prices aren’t expected to fall anytime soon, and ever since the last market crash, we’ve seen years of continuous underbuilding as far as new construction goes. This is one of the main reasons the country is seeing a housing shortage. According to the National Association of Realtors, home supply is down 28% compared to a year ago. Growing demand and little supply make a perfect combination for rising prices. 

Whatever happens at the end of this frenzy likely won’t simulate what happened during the last bubble.

If you’re a seller and you price your home correctly, you’ll likely get a slew of offers. What do you do at that point, though? Hopefully you have a great agent to help you sort through the terms of each offer. Which are paying cash and which are using financing? What are the contingencies of each offer? Are any of them waiving the appraisal or inspection? How do you compare apples to apples and review everything?

There are plenty of great agents out there who can help you, myself included. If you give me a call, I’d be happy to show you what my team and I can do to help you sell your home on your terms and in the time frame you desire. 

Also, if you’re interested in entering a raffle to win a Menards gift card, all you have to do is reply to the email that led you to this blog and state your intentions. I’ll announce the winner on my next video, so stay tuned!

Here’s what else the latest market numbers show.

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The latest reports for our February real estate market are in, so today we’ll be going over what the numbers mean for buyers and sellers in Madison and Dane counties.

Compared to the previous year in Dane County, we saw a 4.6% increase in year-to-date sales through February. Over the same period, year-to-date prices have increased by 12.6%. Keep in mind that around this time last year, we were starting to move into the COVID-19 pandemic and saw the number of listings decrease. We’ve been at incredibly low inventory levels ever since.

Comparing this February to last February shows that Dane County prices are up 13.9%, but the number of sales has dropped by 1.8%. I predict we’ll see some interesting year-to-year numbers for March, as that’s when everyone pulled their house off the market last year. This year’s numbers will probably blow last year’s out of the water, at least initially.

We currently have 1,055 active listings in Dane County, but you may not be seeing the true inventory levels on aggregators like Zillow. Additionally, many of these homes already have accepted offers. So at the moment of this recording, there are really only 400 active listings in Dane County.

This year’s numbers will probably blow last year’s out of the water, at least initially.

There were 7,281 sales in the last year, and if we use the 1,055 number to calculate our supply, we see that we have 1.74 months’ worth of inventory. However, what’s truly available is much lower than that—in fact, it’s closer to 0.6 month’s worth.

In Madison County, there are 497 active listings; however, only 170 don’t have an accepted offer. Using the larger number gives us 1.45 months’ worth of inventory, but the smaller number puts us under a half-month of supply. You can see all these numbers with real-time updates using our online tool—just scroll down to the bottom and sign up to access the information.

If you have any questions or would like more information about buying or selling a home, feel free to reach out to me. I look forward to hearing from you soon.

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