Everyone loves to talk about real estate. Recently my real estate partner, Jason Kratochwill, put together this synopsis of the area real estate market:
First, we all read the media and while most articles are focusing on how bad things are, there are some good stories out there – interest rates are low, the inventory of unsold properties has been steadily declining, and sales prices in the Midwest, and importantly in South Central Wisconsin are battling and holding their own.
We will admit it is tough to keep the chin up when you struggle with a tougher market and put so much time, money, and emotion into the sale of your clients’ homes and then read the daily barrage of negativity about the market. But, admittedly, it is tough for anyone…yes, including the media…to get a handle on the “market” because there are so many ways to look at it and sources and all information is subject to interpretation.
Recently someone said…”it isn’t a bad market, it is what it is.” And so what is it? A little bit of everything right now.
While the total number of home sales is down from 2006, we are outpacing the nation and Midwest. For instance, the U.S. is down about 10.8% and the Midwest about 8.4%. Many figures show South Central WI down just 5.8% in total sales.
Looking back and comparing 2006 to 2007 through three quarters in the South Central MLS, we find sort of a mixed bag. Inventory is dropping (good thing), 19,703 homes went on the market in 2006 vs. 18,948 in 2007. And, during those same time periods the average sales price in 2006 was $199,556 and in 2007 it is $201,160 – a modest increase. Days on the market has increased about 2 weeks longer to 86 days (much better than the U.S.).
Now the 3rd Quarter is really mixed! On the plus side of things, the inventory is dropping steadily and there were just 5400 homes listed in 2007 compared to 6442 in 2006 and the average sales price is up from $202,122 to $209,405 (a 3.5% increase from 2006) and days on market is flattening a little to just 10 days more or 81 days. However, the number of homes sold declined quite a bit from 3592 in 2006 to just 2761 in 2007. Also, 46.91% of homes listed expired during the 3rd quarter.
So, the market is what it is….there are great buying opportunities out there right now and if you are selling, be patient and realistic in your price and you will be fine.
~ Jason Kratochwill, Broker Associate, Keller Williams Realty
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Quick Market Update* (January 1 – Sept 10, 2007) # Homes Sold Avg Sale Price City 2006 2007 (+/-) 2006 2007 (+/-)
*Source: South Central Wisconsin MLS |
