What’s the latest news from our Dane County spring market?
As we've discussed previously, spring is always the hottest time for real estate, and this year is no different. We expect March, April, and May to be the three hottest months for real estate in terms of accepted offers. June will be the hottest month in terms of closed sales, but the accepted offers leading to those sales are occurring now.
Looking back on January, February, and March, our first quarter market was red-hot, and demand continues to outpace supply. At the end of the quarter, there were 13% fewer homes for sale compared to March 2017. Dane County and Madison as a whole both have an inventory level of about 1.2 months. If we narrow that down, the east side of Madison has just 81 houses available for sale right now, which equates to just 0.7 months of inventory. Remember—a healthy, balanced market has around six months of inventory.
The first quarter of 2018 saw the highest number of recorded sales in the history of Dane County, beating out the previous record set in 2006. The median home price also increased 6.3% compared to 2017. It’s not just Dane County that’s doing well in terms of its number of sales and home values, either. The rest of the country is doing well too, so I don’t see this trend changing anytime soon.
Inventory is down and demand is up in our market.
Yet another point to consider, and one we’ve discussed in previous videos, is the fact that mortgage rates have been increasing. Right now, they’re at 4.5% for a 30-year fixed rate. This is higher than they were before, but they’re still at historic lows.
What does all this mean for you, as a buyer and seller?
If you’re a seller, now’s the time to put your home on the market. In fact, I don’t think there’s ever been a better time to do so. Homes listed at the right price are selling quickly. If you have the right real estate team behind you, you’ll not only be able to sell for top dollar, but you’ll also be able to name the terms of your sale.
If you’re a buyer, because supply is so limited, you need to know what you want and be ready to act swiftly and decisively. As with sellers, you need to work with a real estate team that understands the realities of the market. As I said, interest rates are low, so now is not a bad time to buy either.
If you have any other questions about our current market or you’re thinking about buying or selling a home, don’t hesitate to reach out to us. We’d be happy to help you.