Market "Hyperactivity"

This spring has seen a kind of market “hyperactivity” we haven’t seen of late, including double digit sales increases and open house traffic increases of 5 to 10 fold. With April nearly behind us, the strength of the market continues to be apparent.  I have seen in certain markets and price ranges, increased incidents of multiple offers being submitted on the same property.

The message here is two fold: For sellers, this is the best time in the past 6 years to have your home on the market. For buyers: Don’t take a chance on missing out on your dream home by sticking to last year’s paradigm of a soft market and making an unreasonably low offer. With interest rates hovering at about 4% (about one half of the level they are in a typical market), you will more than make up for your purchase price increase through the interest saved by locking in today’s rates.

Interestingly, history has shown us that interest rates are held down during an election cycle, but after November, anything could happen. Its time to move to your next home now.

Remodeling ROI

Over the last few years, many homeowners disgruntled with the housing market have decided to remodel their current home rather than move to a new one.  Although interest rates continue to be be low and the housing market on the near West Side of Madison has improved substantially over the last year, some homeowners are still inclined to remodel.  Nothing wrong with that!  Before you decide to jump into a remodel, be sure you know what kind of return to expect.  Here are few things to think about.

1. The kitchen – The kitchen will give you the biggest bang for your buck.  Whether it’s a major remodel or a simple face lift, putting a fresh face on your kitchen is your best investment. If you are making changes to sell your home, don't go overboard, choose high end finishes and fixtures only if you plan to stay for a while.  Expect an 85 percent return on your investment.
2. The bathroom – An outdated bathroom can be a real downer. The large soaker tubs that were popular several years ago are being replaced with large walk-in showers.  A major renovation could cost less than $20,000, but it should yield an 80 percent return.
3. Decks/Patios – A new deck or patio can cost a few thousand to tens of thousands of dollars, depending on size and materials used.  Stone patios in lieu of the traditional deck is becoming more popular, but will also cost you more in materials and labor. If the deck/patio is well done and incorporates inside space with outside space, your return could be more than 80 percent.
4. Landscaping – With the warm months of spring and summer upon us, landscaping becomes more important.  Don't underestimate to value landscaping can add to the curb appeal of your home as well as the enjoyment of a beautiful yard and garden.  Professional landscaping can cost as much as $20,000, depend on the size and scope of the project.  But you can expect to reap 110 percent return on your investment.
5. Window replacement –  New windows offer energy efficiency as well as improve safety, in some cases.  The number of windows you replace and the type of window you choose will impact the cost, but you can expect a return of about 70 percent.

New West Side Habitat ReStore

Looking to replace the tile in your bathroom?  Check out the selection at the Habitat for Humanity ReStore.  Need a new vanity?  Light fixture? Kitchen cabinets? Front door, back door, storm door?  The Habitat ReStore sells new and used building materials to the public at discount prices. Inventory includes appliances, cabinets, flooring, hardware, windows, wood furniture, and more.  If you have visited the east side store, you know what a treat it is!

And If you are a treasure hunter like me, you'll be thrilled that Habitat for Humanity has plans to open a west side store in July. The new location, at 5906 Odana Rd., will begin taking donations on May 1 on Tuesdays through Thursdays from 9:00 a.m. - 5:00 p.m.

The Habitat ReStore estimates that 10,000 tons of building material have been reused and sold instead of going in the Dane County landfill. Proceeds from the store benefit Habitat for Humanity of Dane County. Currently, Habitat East helps build two to three homes a year. With both stores, proceeds will help Habitat build as many as five homes a year in the future.

So if you are thinking about a home improvement project, be sure to check out the new west side ReStore location.  You might find just the right treasure for your project and help a worthy cause at the same time!

Home Sellers in 2011

In my last post, I spoke about some statistics gleaned from the National Association of Realtors  2011 Profile of Home Buyers and Sellers Report.  In that report, the demographics of the buyer changed in 2011.  Similarly, the demographics of sellers changed in 2011, as well.

Here's what sellers looked like in 2011:

Characteristics of Home Sellers

• The typical age of home sellers has jumped to 53 from 49 in 2010 and 46 in 2009.
• The share of married couples selling their home also grew to the highest level ever at 77%. From 2004 to 2010 the share of married couples ranged from 71% to 75%. Single females selling accounted for 13% of households, and single males for 6%.
• 66% of home sellers remain in the same state when they purchase their next home. In fact, home sellers tended to stay relatively close when purchasing a home, only moving 18 miles away!
• 46% of recent sellers purchased a home that was larger than the home they just sold, 31% purchased a home that was about the same size, and 23% traded down to a smaller home. 60% of sellers purchased a newer home than the home they recently sold, 20% purchased an older home and 20% purchased a home that was about the same age.

Home Buyers in 2011

The National Association of Realtors recently released it's 2011 Profile of Buyers and Sellers Report.  As expected, there is some very interesting statistics.  A few of the figures about buyers indicate the the age of buyers has changed a little over the past year.    For instance, the report says the typical buyer was 45 years-old in 2011, a jump from 39 years old in 2010. 

In my dealings with clients and open house traffic, I would have to agree.  In the last few months I have seen more older couples looking to down size.  These buyers are also looking for one-level living such as a ranch or raised ranch.  Mid-century modern homes also seem to be popular with this group of buyers.

Here are few other statistics from the report:

Characteristics of Home Buyers

• 37% of recent home buyers were first-time buyers, a drop from 50% in 2010.
• The typical buyer was 45-years-old, a jump from 39-years-old in 2010.
• 64% of recent home buyers were married couples - the highest share since 2001.
• 18% of recent home buyers were single females - the lowest share since 2004.

Characteristics of Home Search Process

• For 35% of home buyers, the first step in the home buying process was looking online for properties.
• The use of the Internet in the home search dipped slightly to 88% from a high of 90% in 2009 as the demographics of home buyers shifted to slightly older repeat buyers from younger first-time buyers.
• Real estate agents were viewed as a useful information source by 98% of buyers who used an agent while searching for a home.
• The typical home buyers searched for 12 weeks and viewed 12 homes.

More information on sellers next time!

First Quarter Home Sales

The first quarter housing market on the near West Side of Madison has been brisk.  In the last three months, 16 homes have sold in the Westmorland, Sunset Village and Dudgeon-Monroe neighborhoods.  That figure may seem low, but last year at this time, only three homes sold during the 1st quarter.  Homes sales have tripled over a year ago at this time.

Price continues to be a driving force.  In a few cases when the price has been dropped, the selling price is actually higher than the list price, which may mean the lower price incited a bidding war!

Here's another interesting fact, homes that are on the market now are selling quickly.  There are several homes on the near West Side that have accepted offers after only days on the market.  The sellers are putting their best foot forward, the buyers are out and willing to negotiate and the interest rates continue to remain fairly steady.

A few other facts:

• 131 - Homes currently on the market on the near West Side
• 28 - Homes currently on the market with accepted offers (nearly 25% of homes listed have an offer)
• 84 - Average days on the market before an accepted offer
• 14 - Number of homes that had an offer in 30 days or less

Here's what sold on the near West Side during the first quarter of 2012:

Sunset Village - 1st Quarter Home Sales-2012

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
3553 Heather Crest	$183,000	$149,900	$153,000	84%	102%	323	23
4330 Bagley Pky	$239,900	$169,500	$165,000	69%	97%	243	14
306 N. Owen	$189,900	$179,900	$170,000	89%	94%	103	56
510 N. Meadow	$198,750	$191,000	$190,000	95%	99%	209	17
330 Westmorland	$225,000	$199,900	$193,000	85%	96%	172	60
Average Total	$207,310	$178,040	$174,200	84%	84%	210	34

Westmorland - 1st Quarter Home Sales - 2012

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
4018 Tokay	$181,900	$181,900	$175,000	96%	97%	69	69
3825 Paunack	$248,500	$231,000	$217,500	87%	94%	95	2
522 Holly	$249,900	$244,900	$233,000	93%	95%	166	2
2 Birch Cir	$300,000	$275,000	$280,000	93%	101%	167	46
457 S. Owen	$339,000	$299,900	$286,000	84%	95%	54	18
564 Toepfer	$297,000	$297,000	$287,500	96%	96%	97	97
Average Total	$269,383	$254,950	$246,500	91%	91%	91	39

Dudgeon-Monroe-1st Quarter Homes Sales - 2012

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
616 Pickford	$225,000	$225,000	$205,000	91%	91%	7	7
224 Virginia Terr	$299,900	$299,900	$253,000	84%	84%	19	19
502 Edgewood	$329,900	$294,900	$276,750	83%	93%	218	30
1931 Rowley	$399,900	$374,900	$353,200	88%	94%	164	45
2111 Commonwealth	$569,900	$569,900	$542,000	95%	95%	16	16
Average Total	$364,920	$352,920	$325,990	89%	92%	84	23