When you think about it, these numbers from the Mortgage Bankers Association are pretty shocking. Right now, applications for purchase loans (excluding refi's) are running 44 percent below the levels from a year ago and at the slowest pace in 28 years.
And yet, prices keep rising. How can this be?
Well, one thing we keep learning, based on our daily work in the field, is that we have a significant amount of pent up demand in the Madison area. And although we have no way of measuring it, there's no doubt in our minds that we have tens of thousands of residents here in Dane County who would love to buy a home if there was enough inventory to accommodate.
The other elephant in the room is that new listings continue to enter the market at the slowest pace in over 20 years. And so we end up with buyers competing and prices rising.
Stay tuned for our February price updates, which we'll be releasing real soon.
We also invite you to check out our 2023 predictions, which provide some good insight into the long-term trends that are shaping the Madison area real estate market. And of course you can also reach out to our realtor team whenever you have any type of real estate question. We are here to be a resource for you whenever you need a little insight and need a little help.
This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
1619 Monroe Street #1, Madison, WI, 53711
