When interest rates started rising last year, we knew that higher rates would result in fewer people choosing to buy a home or condo. What we didn't expect, is the profound impact that higher rates would have on the number of people choosing to sell. The chart below makes this relationship perfectly clear. MLS listings dropped noticeably last summer and have been trending lower ever since.
Who's selling and who's not?
Right now most of our clients who are selling are selling due to major life changes. Changes like death, divorce, downsizing, and relocation. What we aren't seeing so much are the people who are choosing to sell in order to "move up" to a larger home. The prospect of higher rates (and a higher monthly payment) is causing this group of people to pause and put their plans on hold. And so we continue to have more buyers than sellers in the Madison area, with prices continuing to rise.
For a deeper dive into the market
Check out our May home and condo reports, which we'll be publishing real soon. In the meantime here are our 9 reasons why we expect prices to keep rising in Dane County. We think you'll find our article has some good insight to offer.
This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
1619 Monroe Street #1, Madison, WI, 53711
