It’s all about location, location, location, which is why Madison’s average single-family home value are currently at historic highs.
Experts say they haven’t seen the housing market this high in our area since the early 2000’s before the recession hit with single-family homes’ average value at $254,593 in Madison it’s a growing market that’s can be seen throughout Dane county.
“You need to literally have an offer written and ready to go so when you walk through the house, it’s time to make a decision, said Charlie Wills, First Weber Realtors.
A majority of the home-buying season occurs during March and continues through June. Wills says sellers in Dane County are benefiting for a number of reasons.
“The job market is really good, less than 4 percent unemployment, really good employers throughout the Dane County area. The supply is down 67 percent over the last two years and that, I think is the biggest driving force. There is less that is available, new homes can’t keep up, they can’t build fast enough to even get us a positive return on our supply,” said Wills.
It’s a reality Wills informs his clients of before taking them to home viewings. Wills compiles a checklist for clients that includes meeting with lenders, down payment and filing appropriate documentation.
“We want to see all of that money upfront ready to go so that when you say I’m ready you can literally blow everyone else out the water,” he said.
According to Wills, many houses are selling within days of being put on the market, increasing the competition for buyers. For clients like Clint Walkner who’s family is looking to buy and sell a home in the area, it’s a tricky market to navigate.
“We are going to be a buyer and a seller and the market right now being a buyer is really hard because there’s not a lot of inventory out there,” said Walkner.
“You’re selling your house in days, your able to negotiate terms that you want verses you use to have to accept whatever the buyer was going to give you,” said Wills.
Walkner and his family searched for a home unsuccessfully for months. With little inventory to choose from and competition to outbid other buyers increasing, his family decided to build instead of buy.
“It’s pretty hard to find what you’re looking for and we were eventually able to find what we wanted to and building was really one of our last options,” he said.
While buyers seem to be racing to close on homes in the area, Wills advises to make sure you are keeping your emotions out of buying decisions.
“We would never let our buyers get out of control. No house is worth going into higher debt where you are going to be uncomfortable,” he said.
If the economy holds, the housing market is expected to favor sellers until 2018.