2019 has gotten off to an incredible start as far as our Madison real estate market is concerned.
There has been a surge of buyer demand from millennials entering our market nationwide, and this is great news for anyone thinking of selling this year.
In fact, according to Odeta Kushi, the senior economist for First American Financial Corporation, 2019 is set to be even more lucrative on this front than we’ve observed in the recent past.
That’s because the “largest cohort of millennials [will soon be] entering peak household formation and home-buying age,” says Kushi. This will have a massive impact on buyer demand across the nation.
Yet, despite all of this positive news, the rumors that we’re in a housing bubble aren’t without some truth.
I don’t want to alarm you, but I do want to make something clear: There is no time like the present.
The opportunity to earn the best possible deal for your home has not yet passed, but it will soon—possibly sooner than we think.
The SP CoreLogic Case-Shiller Home Price Indices shows that price growth (which has been monumentally strong for several years) is slowly but surely losing steam.
Don’t let recent talk of a market slowdown scare you off from seizing this opportunity. Experts like Nick Ron (CEO of Home Buyers of America) agree that selling this year will yield far better results than doing so in years to come.
Why? There are a couple of crucial reasons:
1. Rates are still historically low. This past Friday the 30 year fixed rate was sitting at 4.125% at both UW Credit Union and Summit Credit Union. These rates are still incredible when compared to what buyers could obtain in the past. It’s also worth noting that rates are forecast to rise. It seems most factors have been favorable for rates so far this year. But there is a good chance that rates could go up at any time. Rates seem to get favorable slowly and then all of a sudden, they zoom up quickly. The stock market is approaching all-time highs, unemployment is at or near 40-50 year lows, and inflation is low, yet rates and markets are set by looking to the future. A change in any of the previous factors could cause rates to soar. Another wildcard in a global economy is Brexit, which itself could impact rates.
Because of this, buyers are eager to lock in a low rate while they still can. This gives sellers an incredible amount of leverage.
2. Supply is down. After hearing rumors of a supposed market slowdown, many would-be sellers are choosing to hold off on pursuing their real estate goals.In the greater Madison area we have 1.2 months supply of available homes and condos listed for sale (without accepted offers). Dane county has slightly more supply at 1.5 months. These both mean a “Seller’s Market”.*
Yet for any sellers savvy enough to see the “bigger picture,” this means just one (very important) thing: less competition. It’s simple supply and demand—the fewer competing sellers there are in our market, the better chance you’ll have at selling quickly and for top dollar—Provided you set your price correctly.
Of course, these reasons only scratch the surface of what’s happening now.
What does this all mean for you?
It means now is the time to act if you’re thinking of selling. Delaying much longer could cost you dearly.
The good news, as I’ve already indicated, is that our market remains strong for now. If you get off the fence soon, you will still have the chance to sell quickly and for top dollar.
If you’re thinking of selling, I encourage you to take a look at what your home is currently worth by using this free home value calculator, which takes into account recent Madison sales:
This calculator will offer a decent estimate range of your home’s value, but if you’re serious about maximizing your results, don’t hesitate to reach out for an in-person consultation.
I’d love the opportunity to give you an even better idea of what you could earn for your home. I’m very familiar with our national and local market, and would be happy to help you make the most of this opportune moment in real estate.
If you’re ready to take advantage of current conditions while they last, please give me a call or shoot me an email.
Have a great day,