We recently blogged about the shifting summer real estate market, and how buyers and sellers should adjust their expectations accordingly. This confuses some people, because media headlines can lead us to believe the market is always in a crazy, hyperactive state. The truth is the market is constantly changing throughout the year.
Another thing to keep in mind about real estate headlines is most of the time they're based on old data. For example, very soon we'll be reading about the latest market data for closings that occurred in the month of June. The important thing to remember about the June data is it's based on offers that were written in the months of April and May. By default, most of the headlines we read are the result of market dynamics from 2 to 3 months in the past.
A More Current View of the Madison Real Estate Market
There is one statistic that gives us a much more timely view of the Madison real estate market. Each month, we take a snapshot of the percentage of listings under contract with an accepted offer. A high number represents a hot seller's market. A lower number represents a market more conducive to buyers.
Our most recent data comes from our snapshot taken on July 13th. For the first time in 6 months this statistic has dipped below 50%.
The Summer Market is a More Balanced Market
The data above shows the market has transitioned from "crazy" to "balanced". As a general rule, offers written in the summertime involve fewer competing offers and fewer bidding wars than offers written in the spring market.
Of course, there are exceptions. If you have a nice home to sell for under $350,000, there are a ton of buyers out there looking for a home in your price point. If your house is located on either the near west side or near east side of town, there are even more buyers who would love to compete for your listing.
A Balanced Market is Better for "Move Up" Buyers
The summertime is a great time for buyers to move up from a starter home to a higher priced property - for two main reasons. First, it's easier to write an offer with a home sale contingency and get it accepted in July and August. That's because there are fewer competing buyers for higher priced properties in the summer market. Second, selling a starter home in the summertime is a very reasonable goal due to the ongoing shortage of affordable housing in Dane County.
The above is just one small example of how buyers and sellers can play the changing market to their advantage. To discuss your individual needs and goals, reach out to us here. We'll schedule a short consultation and help you put a good plan into action.
