A few days ago one of our buyer clients was elated to learn that her offer for a west side condo was accepted. This may seem hard to believe, but there were 8 other buyers who wrote an offer on the same property. You may be wondering, how is it possible that we're seeing so many competing offers at a time like this? It doesn't make sense that this would be happening during a pandemic.
The answer is, it's all about scarcity. Here's a quick look at how scarcity is shaping our market this Spring.
Scarcity in the Dane County condo market
There are fewer buyers participating in the market right now - and fewer sellers, too. Here are the trends we're observing in the Madison area condo market.
The under $250k condo market is highly competitive.
This snapshot from April 16th shows a very high percentage of the condos priced under $250,000 are under contract with an accepted offer. Competition for an affordably priced condo is especially strong right now. Many condo sellers are experiencing a successful sale, even though we're in the midst of a pandemic.
Buyer activity has been lower since the middle of March.
This graph shows buyer activity started trending lower about a month ago. As a result, we expect to see fewer closings in the months ahead.
New condo listings have also been decreasing.
Condo inventory was low before the pandemic began, and we expect it to stay that way for the foreseeable future. As you can see from the graph below, new listings have been trending much lower since the end of March. Even though there are fewer buyers participating in the market right now, a scarcity of listings is benefiting sellers in this year's spring market.
Scarcity in the Dane County single family home market
The trends in the single family home market are very similar to the condo trends highlighted above. Here's what's happening in the single family home market right now.
The under $350k market is extremely competitive.
This snapshot from April 16th shows a very high percentage of the listings priced under $350,000 are under contract and scheduled to close soon. Properties are moving very quickly in the under $350k market.
Accepted offers have been decreasing.
Buyer activity has been trending lower since the end of March, so we expect to see fewer closings in the months ahead.
New listings have been decreasing, too.
Even though buyer activity has been decreasing, many sellers are having success because fewer homes are being listed for sale. Scarcity is a seller's best friend in this year's spring market.
Keys to buying and selling in 2020
The Madison area real estate market is very fluid right now and can vary a lot by price range and location. So now, more than ever, it's important to hire a trusted agent - someone who can capably guide you to your end goal amidst all of the change and all of the uncertainty that's swirling around us. Our team is well-prepared to serve you and give you all of the expertise and attention you need during these uncertain times.
Even during this pandemic, we can help you buy your dream home and sell for top-dollar, and do so in a manner that addresses all of your unique needs and concerns. It all starts with a conversation, so please reach out to us and tell us about your goals. We'll help you plan your next steps and move forward confidently in a positive direction.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred