Current Inventory and Market Outlook
Current Inventory in Marathon County
180 Homes Total
Homes that have accepted offers: 102
Homes that are available (no offers): 78
Housing Market by Price Point
Under $200k: 56 homes, 14 available
$200k - $300k: 55 homes, 24 available
$300k - $400k: 26 homes, 13 available
$400k - $500k: 22 homes, 9 available
$500k+: 22 homes, 18 available
This year there was less inventory (in general) than in previous years. In the spring time, there were about 240 homes on the market, and throughout the year we stayed in that 250 - 350 range. Compare this to Fall of 2021, there were about 400 homes on the market with about 250 homes under contract. And summer of 2020, where you’d see consistently 450 - 550 homes on the market.
Throughout the spring and summer in 2022, the market was categorized by low inventory paired with high demand. Interest rates were still low, but began to rise and the trend of rising interest rates was well known / anticipated by buyers which pushed buyers to make a purchase quickly before the interest rates would likely go up. That was a large contributing factor to the intense market where bidding wars were "the norm".
Around September, the market began to ease up slightly from the intensity for buyers. Over the last few months, to now, the market has certainly shifted. What used to be "the norm" was multiple offers for sellers with a buyer needing to get very creative and aggressive to get an accepted offer. Today that has shifted as most homes are only getting one offer, in some instances are homes that are more desirable, are getting multiple offers, but the winning offers are not as much over the asking or as aggressive of an offer.
Throughout the year in order to get a desirable home, this was the winning formula: $10K-$30K over the asking price, no home inspection, and perhaps even some appraisal gap protection (covering the deficit between the appraisal price and purchase price - often out-of-pocket funds from the buyer).
Right now, the winning formula (most of the time) would be a full price offer with a home inspection and in a multiple offer situation, perhaps going $10K - $15K over may be enough to secure the home.
In my opinion, the reason for this shift in the market has to do with the number of buyers in the market and the buyer mentality. The amount of buyers has gone down as many of the buyers who were looking this year have now found a home, and with rising interest rates, the amount of buyers getting into the market has gone down. The buyer pool is much smaller now than earlier this year. The mentality of buyers has changed as well, most buyers feel the interest rates are already high. The market is softening a little and is likely going to continue to, so there isn’t as much urgency on the buyer end of things.
As agents, we are still seeing a fair amount of showings on homes, but only maybe 1-2 offers. Buyers seem to be a little more selective and picky, and are taking longer to make a decision than in past months.
The inventory; however, is so low that prices have still remained fairly stable. Back to the basics of supply and demand, although the demand for homes has gone down, the supply has dropped down substantially as well. So we have seen fewer buyers and sellers in the market, but prices have remained stable. Since there are still so few options for buyers in the market, and homes are still selling fairly quickly, prices have come down slightly from the lack of hype, but have not substantially dropped.
Advantages To Buying Now
- Less competition (Higher chance of getting a home you love) - There are less buyers in the marketplace that you are competing against, which may be helpful if you like to process decisions slower.
- Less risky offers / home inspections - There is a good chance you may be the only offer, or may be competing against one or two others. This may allow you to leverage more contingencies in your offer.
- Slower more enjoyable pace - For some buyers, it is more enjoyable to look at a few homes and have time to weigh your options and your pros vs cons lists, versus making a hasty decision.
- Potentially better price from a few months ago - Instead of bidding $10K - $30K over asking, you may be able to lock in a great home at the asking price or slightly under in some cases, depending on how long it's been on the market, the seller's motivation level, etc.
We hope this market update was helpful and informative. If you have questions about getting into the market as a buyer or seller. Drop us a memo below!