A healthy economy and low unemployment continues to boost home sales in Wisconsin, despite supply restraints.
The Wisconsin Realtors Association reported that home sales hit a record high between December and February — typically the slowest season in Wisconsin. Low inventories and slowly increasing mortgage rates — an attempt by the Federal Reserve to counter inflation caused by tight labor markets — have contributed to a jump in home prices and created a strong seller’s market.
The median sale price for a home in Dane County has increased from $216,250 in February 2015 to $269,900 in February 2018. While mortgage rates still remain historically low, they’ve increased approximately a half percent in the first two months of the year and that’s a trend that’s expected to continue throughout 2018.
In such a tight market, here are a few things buyers should keep in mind:
1. Get preapproved. You’ll have a firm understanding of your budget and sellers will take you more seriously.
2. Bid competitively. In a seller’s market, homebuyers should be prepared to make their best offer early.
3. Work with a Realtor. When inventory is limited, a good buyer’s agent is fast to alert house-hunters to prospective homes, can offer insight on what’s needed to close a deal and help quickly prepare a competitive offer.
I know buying a home in today’s market might seem overwhelming - it is for Buyer's Agents, too - but experienced agents can guide you through the entire process. I'm committed to making the journey to finding your next home a smooth and stress-free experience. As always, I'm here to help!