WHAT TO EXPECT WHEN BUYING AND SELLING A HOME IN 2018
Whether you’re looking to buy or sell a home in and around Madison in 2018, or find the perfect rental, it helps to know what you’re up against. My belief is timing will be paramount for homebuyers around Madison, WI for the coming months. While sellers will likely have an easier time making a successful deal. Meanwhile, renters may find more amenities and negotiating power.
Here’s part one of what to expect for the remainder of Madison’s housing market in 2018.
BUYING AND SELLING
With tight seller’s markets being the leading narrative on home buying over the past few years, Madisonians are unsure about their ability to buy a home. Coming into the second halve of 2018, about 25 percent of my clients believed 2018 was to be a better time to buy a home than 2017.
These attitudes have been pervasive for years and are beginning to wane on homebuyer enthusiasm. Madison, WI has seen many new high rise apartments being constructed in downtown, campus, and along E. Washington. High rents hinder would-be first-time buyers’ ability to save, while interest rates are expected to rise and home prices continue to swell in midlevel housing throughout Dane County.
Many real estate consultants and agents like myself, expect the home ownership rate to continue on the slight upward trend into the third quarter this year. Interested buyers will want to remain diligent about their research and keep a close eye out for new properties coming on the market. It will also be imperative for buyers to have their financing in order to help make an appealing offer on a house, as there will likely be more than one offer on available homes in many markets. If you need help in this area, please reach out for a consultation here.
Affordable homes will still be found in the suburbs and outlying neighborhoods of Madison, WI. Millennials have been late to home buying due to higher growth of the appealing apartments than previous generations in Dane County, according to Jill Surek, real estate agent at Dane County Real Estate, a broker located in Middleon, WI. Along with the amenities that come with new apartments comes higher rents, that makes moving to a more affordable neighborhood key when looking to buy a new home in the second half of 2018. It’s unclear if millennials are slow to embrace the suburbs because they may like to the convenience of city living or they simply don’t feel confident enough to buy. “We haven’t seen a large shift to the suburbs from them yet,” Jill says. “The contention is maybe that won’t happen.” Many Dane County neighborhoods are continually looking at how to expand into condominium and townhouse developments to keep up with the downtown Madison growth of 2016-17.
For sellers, on the other hand, enthusiasm is up – likely because home prices have continued to climb in recent years. A high percentage of my clients believe 2018 will continue to be an even better year to sell than it was in 2017. Of course, this enthusiasm doesn’t translate to more options for buyers: Madisonians may feel it’s a great year to sell their home, but only a small percent of homeowners I’m working with now, currently plan to do so in 2018. The lack of new inventory spells opportunity for those who choose to sell, but will keep many would-be first-time buyers from jumping into home ownership due to stiff competition.
Richard Surek | Senior Mortgage Advisor | 608-960-4363 | firstname.lastname@example.org | richsurek.com