The national housing market is changing drastically—so what does that mean for local markets? Today I have an update on the market specifically in the Madison, Wisconsin, area. Overall, we have seen days on market, prices, and inventory increase, but the number of showings has decreased.
One huge thing is that rising interest rates have put pressure on affordability. Every 1% increase in interest rates raises your monthly payment by about 10%. Plus, rising prices aren’t just affecting real estate; the cost of groceries and gas are climbing too. This means the cost of living is going up, which is putting a strain on many buyers’ affordability.
Secondly, there are around three weeks of available inventory in our area, which is more than just a few months ago. However, even though inventory is rising, it’s still historically low—a balanced market has about six months of inventory. Between this and the rising costs, it is clear that we are still in a seller’s market.
If you want more information about what the market is doing now, or if you’re thinking of buying or selling a home, please reach out to me by phone call or email. I’d love to chat with you and discuss the specifics of your situation!