What a crazy
winter we've
had! A full week
of 60- degree
days in the
middle of
February
including record
highs over 70
degrees at one
point! That's
utterly unheard
of. Most of us
enjoyed the
reprieve from
the typical
frigid
temperatures
that
Wisconsinites
are used to
enduring around
Valentine's Day.
That said, while
many were
enjoying the
heat, others who
enjoy the cold
and snow missed
outdoor
activities like
snowmobiling and
skiing. What is
great for some
can concurrently
be disappointing
to others.The same can be said of South Central Wisconsin's housing market. The South Central Wisconsin MLS reported 256 Dane County homes sold and closed in January of 2017 at an average price of $291,166. The number of reported sales are down from January 2016, during which time 292 homes were sold, however average sale prices increased by nearly 4% to $280,666. As these numbers illustrate, while home sellers are thrilled, buyers might instead be experiencing a certain sense of frustration. Inventory is down, sales are happening fast, and with Seller's currently in control, Buyers have to act extremely quickly. In many situations, Buyers find themselves in competition with numerous other offers on a listing that has only been on the market for a few hours.
As we've all noted for some time now, home inventory is down. Recently released MLS statistics show the lowest inventory levels in Dane County since those records began being kept with prospects for a shift in the supply/demand imbalance not appearing to be in the foreseeable future. A jump in new home construction starts would help ease the problem however, this appears unlikely due to a shortage of both construction workers and lots prepped for development. Additionally, new homes tend to be on the high end of the price spectrum while the highest demand for homes is at the entry level for first-time buyers.
Low home inventory will remain a concern for a while yet, as even more buyers enter the market as spring appoaches. Especially when one factors in the Federal Reserve’s stated intent of raising interest rates several times this year. Telegraphing that type of adjustment will only heighten buyer's desire to purchase quickly and close before higher rates price them out of the market.
2017 will be a great year for home sellers, however extra care, attention and compassion will be the order of the day for buyers. As always, I am here to assist you on any and every level. Happy spring!
