Last year we predicted 2018 would be a clear seller's market in Madison and Dane County. This year we're predicting 2019 to be a more balanced market, characterized by rising inventory and moderate price growth. You can get all of the details by viewing our 10 predictions for the 2019 market below.
Our 2019 Madison Real Estate Predictions
#1: Foreclosures will rise.
Foreclosures have been quietly rising in 2018, and we expect more of the same in 2019. This means more distressed properties will become available for sale in the coming year, but not enough to appreciably impact inventory in the Madison area.
#2: New home and condo construction will plateau.
Madison area housing starts have been flat in 2018, and this trend will continue throughout the coming year. A shortage of lots and labor, and rising material costs, will limit new construction in 2019.
#3: Mortgage rates will rise above 5%.
Mortage rates have risen slightly in 2018, and Freddie Mac expects rates for 30 year loans to rise above 5% in 2019. Even so, rates in 2019 will remain low when viewed from an historical perspective.
#4: Home and condo sales will decrease 5 to 10 percent.
The increase in mortgage rates will impact home and condo sales in 2019, but sales will remain strong compared to many other years in the recent past. Dane County has a strong economy and a growing population, which means the demand for housing will be solid in the year ahead.
#5: Housing inventory will rise.
The decrease in sales will lead to an increase in inventory, which will prove to be a positive development for the market. Housing supply has been too low for too long, and rising supply will bring more balance into the market.
#6: Home and condo prices will rise 2 to 3 percent.
Price growth will moderate as the market becomes more balanced. This will be another positive development for the market, as prices have been rising at an unsustainable pace over the last 3 years.
#7: Competing offers will decrease.
Many buyers will find the market a little easier to navigate in the coming year. Still, buyers will need to be persistent, patient, and engaged with their search in order to succeed in 2019.
#8: Days on market will increase.
The amount of time it takes to sell a home will bottom out in 2018 and will begin to rise in 2019.
#9: Expired listings will increase.
Expired listings will increase in the Madison area as some sellers will fail to adjust their expectations for a more balanced market. REALTORs will need to stay on top of the market and keep their clients up-to-date with changing market conditions in 2019.
#10: More sellers will seek out the "real estate consultant".
As more listings expire, more sellers will turn away from FSBO and limited service providers, and turn to real estate consultants for guidance. The most highly-skilled agents in the Madison area will have many opportunities to demonstrate their value in 2019.
Recommendations for 2019 sellers
Right now is the ideal time to prepare for your sale in 2019. Contact us to discuss a good marketing plan, staging plan and list price for your home. For more selling tips, check out our Madison seller's blog.
Recommendations for 2019 buyers
The market will be a little less intense for buyers in the coming year, but it will still be highly competitive. If you're serious about buying in 2019, we recommend you begin your search right now. Remember, if you wait until the springtime to begin your search, you'll be choosing to buy during the most competitive time of the year.
Contact us anytime with your buying and selling questions. We're here to help you accomplish all of your real estate goals in 2019.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred