How’s the real estate market? Prices are up, demand is high, and mortgage rates remain low. Learn more about the housing market in January and what our predictions are for spring.
Each winter we get asked, “Should I wait til Spring to sell my home?”. During the winter months the market is slower, but the buyers tend to be more serious. We are still in a seller’s market in Dane County which means their are more buyers looking for homes than what is available. We have about 3.5 months of inventory currently available, compared to 2 1/2 years ago at this time we had 5.6 months inventory available. For a balanced market we should be around 6 months of supply (inventory). This winter we have seen the average price of homes increase 2.8%.
We are seeing mortgage rates start to inch up little by little. In January the average interest rate was 4.15% according to WRA President Michael Theo. Rates have increased since 2012 at this time when they were 3.35% Theo stated.
Moving Forward to Spring
The market is not slowing down anytime in the near future, as the inventory shortages are going to continue through the rest of the year and into 2019. With the prediction of the interest rates increasing to 5% in the 4th quarter of this year, we will see demand to buy homes increase in the 2nd and 3rd quarters as buyers try to avoid the higher rates. This increase will push inventory levels lower than where they currently are and homes prices will continue to rise.
Buyer what does an interest rate increase mean to you? An interest rate increase will affect what you can afford for a home. For instance, on a $300,000 home with an interest of 3.25% and a down payment of 5% on a 30 year mortgage your payment would be approximately $1241 according to BankRate.com. Take the same terms with a 5% interest and the same home will be $1530 per month. That is a difference of $289 per month. This can be scary, but interest rates are only going to keeping rising from here. How high and for how long? That is the uncertain, if we had to guess we would say for the next 5-7 years as long as the economy keeps doing well
If you are thinking about buying a home the steps you need to… Contact us. We will set up a first time meeting to go over the home buying process, learn what would like in a home, and areas you would like to live. We will also talk about different contingencies, financing, and establish a timeline to make sure you get the keys to your new home in time before your current home sells or your lease ends. You can contact us below or call 608-834-3341 to get started or e-mail us firstname.lastname@example.org
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If you are thinking about selling a home… Contact us for your free market analysis of your home. A market analysis will show you similar homes for sale, homes that have sold, and homes that did not sell (expired). When we present your market analysis we will do a walk through your home and give you staging tips/advice to make sure your home sells for top dollar. We will establish a timeline based on if you are relocating, moving to another home in the area, or building a home. When the time is right we will have our professional photographer come take photos and video your home and then start our pre-listing marketing plan! Our pre-listing plan is designed to get lots of excitement and get everyone talking about your home. We do this by social media blasts, post cards, door knocking, invitation only ‘viewing’ for neighbors, and cap off the week with the grand finale – a MEGA OPEN HOUSE!
Schedule your free market analysis by contacting us below or call 608-834-3341 to get started or e-mail email@example.com
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