This year has been the most competitive real estate market we've ever witnessed in Madison. Due to persistently low inventory, many buyers have missed out on their dream home and are still searching for the right property, in the right location, and at the right price.
Fortunately the upcoming holiday season offers a window of opportunity for buyers who stay engaged with their search. That's because the market slows noticeably during the holidays, as fewer offers are written in November and December than in any other month of the year. Over the years we've identified two other market trends which show the opportunities available during the holiday season. For more information, read on below...
1) Competing offers are less common during the holidays
The chart below shows the percent of listings that received multiple offers for each month of the 2017 calendar year. As you can see from the graph, competing offers and bidding wars are least common during the six month stretch that spans from July to December.
2) A higher percentage of listings are available for purchase during the holidays
This chart shows the percentage of Madison single family listings which were available for purchase throughout the calendar year. In other words, these numbers show the percent of listings by month which did not have an accepted offer. This is a typical pattern for our market, with more than 60% of all listings available for purchase during the holiday season. The percent available for purchase falls to 50% and less in the springtime and early summer. Put another way, if you're shopping for a home online in the springtime, only half of the listings you see are actually available for purchase. Later in the year the number grows to 60 percent and higher.
Seller psychology during the holiday season
Showing activity decreases noticeably during the holidays, and so for many Madison area sellers the holidays can be a time of high-anxiety. Many sellers, who earlier in the year were inflexible with pricing, become much more flexible at the end of the year. This is why the holiday season can be a great time to buy in Madison's low inventory market.
Are you thinking of buying a home in the Madison, Wisconsin area? Contact one of our full-service agents, and tell us more about your goals. We'll help you better understand your target market and put a good plan in place for your purchase.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred