There are a lot of opinions out there on what is happening with the current real estate market--it’s slowing down, foreclosures abound, it’s still a bidding war or there doesn’t seem to be an end in sight.
Here is what I am seeing and my thoughts on the near future of the real estate market in the Dane County area...
The summer market is in full swing, but what has not been normal from a real estate market perspective is that people are actually taking vacations this year. With travel at its highest it has been in the past couple of years from July through mid August, we are seeing a drop in activity. Not for market reasons, but the typical summer lull that hits us each year (pre-COVID). We have not seen it in a few years so it is taking everyone a moment to figure out what is happening.
Our Team has been through many different markets and it was easy for us to see that this is normal. The slow down is almost a desired time of the year for most. It is when most buyers are out of the market due to travel and family time. Sellers are wanting to sell but the buyer pool has shrunk. Knowing that, it is easy for us to discuss this with clients, to set the right tone and pricing strategy for placing a home on the market.
Looking ahead, we are coming into Labor Day weekend. We will see a slow down the week prior to that and not return until the week after school is back as everyone is getting settled in. The Fall market will then be in full swing until the end of November, most likely.
The Fed just locked in the fund rate at 0% until Q1 of 2022. That is a huge deal if you are a seller or a seller buyer. For buyers, that means historically low rates will most likely stay. Lock in that sub 3% rate for 30 years! For sellers, that means that buyers will still be looking for a home to upgrade or make a change to, just as they did in the Spring market.
Pricing and how a home is prepared are still critical to successfully listing your home for sale. Having an expert that knows the intricacies of the market, how to price it, and how to prepare and present your home, is still important to take advantage of the demand in the market.
In Dane County, houses priced under $400,000 are still hottest selling. It is softer in the $500,000 to $700,000 price range. The luxury market ($750,000+) is seeing a large year in sales, with not too much softening there either. It is important to make sure your agent knows where your home sits and how it will compete in the market. This doesn’t mean you can price it anywhere though. A majority of buyers look for 12-18 months on the market before they buy and 98% of them have an agent representing them. They will know if you are overvalued and will wait to see the house adjust before coming to see it.
If you ever have specific questions about an area or neighborhood, or want to know when to sell, we are happy to help and bring specific information to you. Email us at email@example.com anytime.