It seems the Madison housing market has hit a bit of a summer slump. It's unusual in July and early August to see such a slowdown. By mid-August, sure, as parents and kids depart this great city for last-minute summer vacations or attention is turned to getting ready for the start of school. But the slump I'm referring to began right before July 4th and continues to stagnate.
So what's up? Well, my experience and knowledge of the market tells me it's a multi-faceted issue:
- Early spring brought on a crazy market where we saw lots of buyers out, low inventory and multiple offers on properties. It was a seller's market.
- Interest rates remain at near-historic lows
- Those that tried to sell several years ago and couldn't instead refinanced with the intention of staying put for a while. They may have remodeled or added on to their house. The point is, they are no longer in the market to sell.
- Buyers that were out this spring and are still unable to find what they want have decided to wait. In their minds, the interest rates remain low and they haven't found what they want. Or worse, they found what they wanted and were in a multiple-offer situation and lost (ouch!).
My best educated guess is that this is a short-term phenomenon. Interest rates will eventually begin to creep up. When that happens, those that are on the fence will be jumping off in a hurry. I can't wait to find out what the next few months bring!
It seems the whole nation has been in mourning over the untimely and unfortunate passing of actor and comedian Robin Williams. I was one of them. It saddened me that someone who was so funny and entertaining to others, was truly hurting.