April Showers Bring May Closings

This posts headline is a time honored saying forecasting the growth of plants in the springtime. And while this winter's brutal weather has given us all reason to look for hope in the spring thaw, the majority of questions  for me of late revolve around seasonal growth in real estate sales and how the market is faring right now.

With the first quarter of 2014 now in the books, overall Dane County residential sales volume, as reported to the MLS, is down around 5.5% year to date. My best estimation at this point is the dampened closing rate was fueled in large part by the extremely cold weather which kept people from venturing out to begin their search for a new home. With warmer weather now inching its way in our direction, I see the market picking up quickly at this point as buyers try to make up for lost time. As evidence, we can point to last Sunday's weather and the attendance reports submitted to our marketing team by agents in the field. With temperatures in the 60's for the first time this year, we saw open house traffic increase as much as 50% over the previous week. More lookers means more offers which means more sales and ultimately more closings. For those who spent the extra time inside or in their yards getting their homes ready for market, listing with soon will position you for the maximum number of showings to potential purchasers. I guess our time honored saying should be, "April Showings Bring May Closings!"

On the bright side of all this, despite the Federal Reserve stated intent to withdraw stimulus from the economy by reducing the amount of mortgage backed securities they purchase each month, interest rates have actually dropped approximately ¼% in the last 30 days. While it would be difficult for anyone to argue that the 4.5% – 4.75% rates we saw in February were usurious, a drop to 4.25% improves the overall housing affordability index and allows more buyers to qualify for better loans. It's a win/win situation for everyone provided they move quickly.

As always, let me know if I can be of any help!