I've had the distinct honor to serve this year as the president of the South Central Wisconsin Multiple Listing Service (SCWMLS) or the MLS for short. In that role we monitor the real estate market on a monthly basis to see if there are any trend lines that might be an indication of market shifts or adjustments. After the crash and recession of 2008-2012 as a real estate professional, I am very sensitive to the market so I can counsel my clients appropriately. Now I'll never profess to have a "crystal ball" and be able to predict the market, yet studying local market trends is quite often an indicator of what might be coming.
So how are we doing in Madison in 2016? Let's look at the first 6 months of this year vs. that same period last year.
In the city of Madison, there were 2144 active single family homes for sale in 2016. Of those, 1666 sold in the first 6 months of 2016 with an average days on market of 48 days. That's 77.71% of all homes for sale selling. Strong numbers for sure. In that same time in 2015 in the city of Madison, there were 2403 active single family homes for sale. Of those, 1710 sold in the first 6 months of 2015 with an average days on market of 54 days. That's a decline of 44 sales year over year or a 2.5% drop. Really nothing significant, yet an indicator that the market might be cooling off a bit.
What makes this hard to judge is the active listing inventory. For the past 3 years that has been the challenge for most Buyer's in the market. The number of homes being offered for sale is at an all time low. From any Econ 101 course we all learned that low supply and high demand should boost pricing. Has it done so in this case? Let's take a look. Of the 1710 single families sold in Madison in that time frame of 2015, the average price of those sold was $268,439 while the average price of the 1666 sold this year was $290,221. That an 8.1% rise in average sale price.
Bottom line, low inventory, low interest rates and high demand are pushing the average prices UP. I'm not sure how long this can sustained yet if you've ever thought of selling, this may be the time.
Author:Devery Cash Phone: 608-445-4141 Dated: August 5th 2016 Views: 869 About Devery: ...
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