Everyone wants to know what’s going on in the real estate market. Here’s a recap and insight on what how buyers and sellers can take advantage of it.
In 2012 sales were up 20 to 25% from 2011. They are up again in the first quarter in the greater metro Milwaukee area by 11.5%, which is good news. The number of listings over the last five years has been larger than ever with times when the inventory was as high as 14 to 16 months. (This means that if another home did not come on the market, it would take 14 to 16 months to sell the available inventory.) Now listings are down in the greater metro area by 18.3%, so there are fewer homes on the market. The average list-to-sales price ratio on average is now 96% of the asking price.
What does this mean for sellers? If you’ve thought of selling your home, the time is now. Since there are fewer homes on the market, there’s more competition for available homes. Low inventory often translates into multiple bids, high list-to-sale price ratios and being able to negotiate better terms. It’s a great time for sellers.
If you’re in the market to buy a home, be aggressive. When a home that you’re interested in hits the market, plan to see it as soon as possible and make the best possible offer that’s at an appropriate price point for the seller. Remember, inventory is low. If you hesitate, the property could be gone because others will be making offers.
Keep in mind that mortgage loan rates are still fantastic, which makes buying a home more affordable than ever. A 30-year fixed-rate mortgage hovered at record-low rates during 2012 and is still low into 2013, but the rates won’t last forever. Interest rates are still below 4% with some as low as 3% with a 15- or 20-year fixed-rate mortgage. If you wait and interest rates rise, you could get locked into spending a few hundred extra dollars a month on your payment.
Give us a call so we can tell you where to be positioned and how to be successful in this market. Please contact us at (262) 797-7453. We’d be happy to assist you.