SUPPLY CAN'T KEEP UP WITH DEMAND IN SOUTH CENTRAL WISCONSIN

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!