What To Expect This Spring Market

Spring is here! What does that mean for our local real estate market?

In Central Wisconsin, our real estate market follows trends of peaks and troughs that often correspond with the seasons. The late fall and winter tend to be "slower" as many buyers and sellers do not want to move during the colder months of the year. 

This year, we've had an early spring seasonally, and the market has likewise adjusted to that pace, picking up sooner than it has in years past.

For Sellers: this year is predicted to remain a strong sellers market as our local inventory levels remain historically low. Appropriate home pricing and effective marketing is still important to procure the best buyer with attractive offer terms, or in an ideal circumstance - multiple offers to choose from. Remember, pricing is still important. Not only do the majority of homebuyers have financing and appraisal conditions; but overpriced homes may sit on the market longer, and additional days on the market often negatively affect the homes final sale price. 

For Buyers: this year is predicted to remain competitive. Depending on the price-point, most buyers can expect to compete against multiple offers during their home buying process. The buyer demand and consumer-spending confidence remains relatively high, even with the interest rates climbing into the 6%'s - 7%'s. There is still an imbalance in the inventory levels (supply / demand model), which is driving the prices up and creating a competitive environment.

How can a homebuyer prepare for this market? 

That is a great question! We recommend connecting with an agent early on in your search process. Your agent will guide you through the home buying process, talk about your local market conditions in more details (depending on your specific search criteria - price, location, etc.) and offer strategies to help educate you before you even start touring homes. Being educated and having proper expectations can help buyers navigate the market with confidence. Although it may be stressful at times, you're not alone, but understanding the process can help before jumping in.

Additionally connecting with a lender early on can help you prepare your finances, so when the right home comes along, you're confident financially for the purchase. In multiple offer situations, putting your best foot forward is often recommended, so talking to a lender can help you understand different payment scenarios before you're under contract.

Where is the market headed the rest of this year?

No one has a crystal ball and can say with 100% certainty where the market is going; however, experts predict the remainder of 2024 will remain a seller's market. Until inventory levels increase, the demand will remain strong and competitive for buyers. Interest rates do play a factor in buyers purchasing power; however, most buyers that are financially strong can afford a higher interest rate / monthly payment temporarily, knowing they'll likely refinance in the years ahead when the rates adjust.

If you're thinking about buying or selling in 2024, it's a great time to get into the market. Reach out to our team. We'd be happy to connect and help!

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