Good News for Buyers & Sellers

Good News for Sellers: With interest rates on the decline, more buyers will qualify for mortgages. More buyers mean a faster sale. We all know that when it is time to move, every seller wants to get going now, not 3 or 4 months from now. Sellers will continue to enjoy strong sale prices providing more equity to make the move up to your next home. 

Good News for Buyers: Despite the rising prices, home affordability may actually improve. Lower interest rates mean lower monthly payments and, truth be told for all of us, price is only a component for reference. Affordable monthly payments are really what concerns every buyer. If your payment is more affordable, you are more comfortable and have more money left over at the end of each and every month. Selling price can actually become somewhat of a moot point.

Also Good News for Buyers: Another rarely mentioned component of lower interest rates is that your mortgage balance goes down faster in the early years. Building equity faster is important to all of us regardless of whether you are talking about a near term move up or a retirement decision. We can all win when interest rates are low.

Whether you are a buyer or a seller, I would like to help make your next move is Good News!!

More of the Same...Only Better!

As was widely predicted, the Federal Reserve announced on July 31 that they were cutting the Federal Funds rates by ¼ of one percent. The move, which has been widely anticipated for weeks, was described by Fed Chairman Jerome Powell as “an insurance policy against potential speed bumps for the economy, including rising trade tensions and a slowdown in global growth.” 

While cutting the Federal Funds rate doesn’t have a direct relationship to home mortgage rates, the “trickle down” effect of lowering borrowing rates for banks eventually lowers their overall cost of doing business which then hits the streets where we live in the form of lower-priced mortgages, auto loans and other lines of credit. And who doesn’t like a lower mortgage or car payment? 

Filtering this news into our local real estate market data we can reach a couple of well founded conclusions. Once again in 2019, inventory has again not kept up with demand. Dane County listings for June 2019 were down nearly 5% from the year prior. When listings are down, sales will understandably suffer a bit, as there are fewer homes for buyers to buy. And one doesn’t need to be a senior economist to know what happens when a large group of buyers go after a limited supply of any commodity: Prices Increase. Nothing new here, but what lies ahead for real estate is truly exciting!

Negotiating Feedback

I've been talking with several of my colleagues about the current Real Estate Market in Madison.   With interest rates at incredibly low levels, we are still seeing a robust market, but....

I have also seen more price reductions in the past month or two than I have in the last year.  And some listed properties are lingering on the market longer than they would have a year or two ago.  Is the market changing?  Perhaps.  There are rumors that buyer's are being more particular and are "hunkering down".  They are less likely to move ahead on a property that they like, but feel is overpriced for their budget.

But here's the thing, a seller cannot negotiate "feedback"!  The question my colleagues and I were discussing is "Why aren't Buyer's submitting even a low offer?"  If a buyer has any interest in a property, why not submit an offer and see what happens?  The worst that can happen is the Seller rejects the offer.   It might not go anywhere, but it might...

Just some things to consider if you are in the market to purchase a home!

May/June 2019 Home Sales

As we head into the dog days of summer and the days become warmer, the Real Estate market typically slows a bit.  Buyer's are busy with kid activities, vacations and just enjoying the summer days.  Wondering what that means for home sales?  Here's what sold in late May and early June 2019 on the near West Side of Madison.

Late May/Early June 2019 Home Sales

713 Chapman St Madison, WI

Sold: $385,000

3 Bed, 2 Bath	Built in 0
Sold On 06/11/19	1594 sqft
Price/sqft: $242

5517 Marsha Dr Madison, WI

Sold: $256,000

3 Bed, 3 Bath	Built in 0
Sold On 06/11/19	1248 sqft
Price/sqft: $205

4430 Waite Ln Madison, WI

Sold: $450,000

3 Bed, 3 Bath	Built in 1960
Sold On 06/11/19	2006 sqft
Price/sqft: $224

607 Eugenia Ave Madison, WI

Sold: $290,000

2 Bed, 1 Bath	Built in 1956
Sold On 06/11/19	900 sqft
Price/sqft: $322

1142 Waban Hl Madison, WI

Sold: $762,000

5 Bed, 3 Bath	Built in 1926
Sold On 06/07/19	3272 sqft
Price/sqft: $233

3402 Sunset Dr Madison, WI

Sold: $615,000

3 Bed, 2 Bath	Built in 0
Sold On 06/05/19	2134 sqft
Price/sqft: $288

418 Toepfer Ave Madison, WI

Sold: $425,000

3 Bed, 1 Bath	Built in 1937
Sold On 06/04/19	1323 sqft
Price/sqft: $321

158 Nautilus Dr Madison, WI

Sold: $385,000

4 Bed, 3 Bath	Built in 0
Sold On 06/03/19	2958 sqft
Price/sqft: $130

402 N Whitney Way Madison, WI

Sold: $406,000

3 Bed, 2 Bath	Built in 0
Sold On 06/03/19	1898 sqft
Price/sqft: $214

722 Western Ave Madison, WI

Sold: $395,000

3 Bed, 1 Bath	Built in 1936
Sold On 06/03/19	1791 sqft
Price/sqft: $221

2634 Park Pl Madison, WI

Sold: $580,000

3 Bed, 2 Bath	Built in 1932
Sold On 05/31/19	2060 sqft
Price/sqft: $282

5235 Harbor Ct Madison, WI

Sold: $1,000,000

3 Bed, 3 Bath	Built in 0
Sold On 05/30/19	2733 sqft
Price/sqft: $366

485 Hilltop Dr Madison, WI

Sold: $315,000

3 Bed, 1 Bath	Built in 0
Sold On 05/30/19	1492 sqft
Price/sqft: $211

311 N Hancock St Unit 234 Madison, WI

Sold: $293,500

1 Bed, 1 Bath	Built in 1987
Sold On 05/24/19	750 sqft
Price/sqft: $391

6 Rough Lee Ct Madison, WI

Sold: $0

3 Bed, 2 Bath	Built in 1986
Sold On 05/23/19	2156 sqft
Price/sqft: $0

205 N Whitney Way Madison, WI

Sold: $380,000

4 Bed, 3 Bath	Built in 1965
Sold On 05/22/19	2862 sqft
Price/sqft: $133

6109 Davenport Dr Madison, WI

Sold: $320,000

4 Bed, 3 Bath	Built in 0
Sold On 05/21/19	2873 sqft
Price/sqft: $111

4185 Nakoma Rd Madison, WI

Sold: $549,900

4 Bed, 4 Bath	Built in 1927
Sold On 05/21/19	3000 sqft
Price/sqft: $183

2717 Mason St Madison, WI

Sold: $480,000

3 Bed, 2 Bath	Built in 1941
Sold On 05/17/19	1640 sqft
Price/sqft: $293

2330 Rowley Ave Madison, WI

Sold: $0

4 Bed, 4 Bath	Built in 0
Sold On 05/17/19	3100 sqft
Price/sqft: $0

64 Craig Ave Madison, WI

Sold: $133,000

2 Bed, 1 Bath	Built in 0
Sold On 05/17/19	768 sqft
Price/sqft: $173

4133 Hillcrest Dr Madison, WI

Sold: $424,900

4 Bed, 1 Bath	Built in 0
Sold On 05/16/19	1319 sqft
Price/sqft: $322

5645 Lake Mendota Dr Madison, WI

Sold: $700,000

5 Bed, 5 Bath	Built in 1964
Sold On 05/16/19	4548 sqft
Price/sqft: $154

4214 Tokay Blvd Madison, WI

Sold: $435,000

4 Bed, 2 Bath	Built in 1949
Sold On 05/16/19	1801 sqft
Price/sqft: $242

5022 Flambeau Rd Madison, WI

Sold: $342,000

4 Bed, 2 Bath	Built in 1951
Sold On 05/16/19	2184 sqft
Price/sqft: $157