DANE COUNTY MARKET
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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.
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.
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!
Here are the top three remodeling projects in terms of return on cost.
When it comes to remodeling your home, which projects stand the best chance of getting your money back when you sell? Sellers often ask about home upgrades, so today I’ll talk about the three that will get you the biggest bang for your buck according to data from Remodeling Magazine. You can look over their Remodeling 2021 Cost vs. Value Report for 2022 here. These are the top three according to the report:
1. Garage door replacement. According to Remodeling Magazine, replacing your garage door has the No.1 return on cost, with a national average of 93.3%. It’s definitely a good way to increase your home’s curb appeal.
2. Installing manufactured stone veneer. Putting stone veneer on the outside of your home will spiff up your curb appeal, too. On average, you’ll recoup 91.4% from the project.
3. Minor kitchen remodel. On a full kitchen remodel, you’ll get about 50% of your money back when you sell. A minor kitchen remodel, however, will bring you a 71.2% return.
If you’re thinking about doing any remodeling, I encourage you to talk to your Realtor and get some estimates on the projects you had in mind. If you’d like my advice or have any questions, don’t hesitate to give me a call or send me an email. I’d love to help you.
© 2021 Zonda Media, a Delaware Corporation. Complete data from the Remodeling 2021 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
Here are a few of the many ways to sell your home based on your situation.
It’s no secret that this is a tough market. People looking to buy and sell a home at the same time are in a tricky spot. Sure, you can sell your old house easily, but how can you buy a new one without going homeless?
In a balanced market, it isn’t too difficult to line up your home sale with your purchase, but we are far from a balanced market. There are many ways to accomplish this goal, but I can only share a couple in this short video. Please reach out to me to go through your specific situation.
In a hot seller’s market like ours, you have two main options:
If you have questions about which option is right for you, please give me a call or shoot me an email. I’d love to talk with you about your options and your specific circumstances.
Here are a few myths about the market that you shouldn’t believe.
If you’ve been entertaining the idea of a home sale, there are five myths that you might be hearing, and I’m here today to share the truths behind them:
Myth No. 1: You can overprice your house, and it will still sell. This is simply not true. We have a very limited supply of homes, but consumers are educated. When you overprice, they know it – they may even skip over your home entirely.
Myth No. 2: You can sell your house as is. Technically you can do this, but if you do, you’re telling consumers that something is wrong with the home. You should be willing to negotiate repairs as a home seller.
“If you don’t make repairs, it will be reflected in your offers.”
Myth No. 3: My house will sell in just a few days. While there are certainly cases of homes selling the day they’re listed, it takes around 20 days to get an accepted offer. Accepting the first offer you receive isn’t always wise. You want to expose your house to the most number of buyers before you take it off the market.
Myth No. 4: I don’t need to do any repairs or upgrades before showings. There are some simple, cost-effective things you can do to maintain or even increase your sale price. If you don’t do them, it will be reflected in the lower offers you receive.
Myth No. 5: I can sell without a Realtor. This sounds a little self-serving, but it’s the truth. There’s no way you’re going to market and sell your home effectively on your own unless you are a full-time agent yourself. The contracts are complicated, and having a Realtor on your side ensures you have an expert negotiating in your best interest.
If you have any questions for me about selling a home or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
Here’s why the winter is a fantastic time to sell your home.
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As we get into winter, many people are asking whether it’s a good time to sell their houses. Most people think it isn’t, but is that true?
“There are typically fewer buyers, but they’re genuine.”
In my last video, I talked about how inventory levels are very low. At the beginning of November, we hadn’t seen inventory levels that low in over a decade. However, houses are still selling, and as we head into winter, it’s an excellent time to put your house on the market.
We didn’t see much of a slowdown last year, even though the real estate market usually slows a bit in the autumn and winter. We had a slew of pent-up demand, and we’re continuing to see that. In the winter, we also have more serious buyers; would you schlepp through the snow and ice just to look at houses for fun? No, but if you need a house, you can find one. There are typically fewer buyers, but they’re genuine.
If you have questions about selling your home in the winter or anything else, give me a call or send an email. I’ve had friends and past clients say they didn’t want to bother me with something, but you’re not bothering me! I would love to help you. Also, let me know if you have a topic you’d like me to cover in a future video.
Contact us for more details: 608.729.7351, DaneCountyMarket@gmail.com
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