market update

Real Estate Guy's Update

You've probably heard that the market is down and the press is predicting the doom and gloom of a bubble. Much of this is national talk. So how does this work locally?

Home Sale Statistics
East Madison Feb May Aug
Active homes 491 547 662
Sold homes 162 266 148

West Madison Feb May Aug
Active homes 690 820 961
Sold homes 253 385 177

Days on the market: Dane Co 67 99

As you can see from the data, there is an increasing amount of property on the market. However homes are still selling. They just need to be professionally prepared to show, marketed more thoroughly and priced competitively. All of which are good reasons to employ a seasoned professional.

At a recent company training I had the pleasure to see Jessie Jackson Jr. He was a surprise guest and gave us a 15 minute pep talk on home ownership. His most memorable theme was: Children of Renters, rent homes and Children of Homeowners, own homes. He put out a challenge for us to break the cycle and encourage renters to own homes.
A statistic I heard recently, that the average net worth of an American home owner was about $80,000. Where as the average of a renter was below $10,000.

This really plays into my core belief that I really do help people to improve their lot in life. I really believe that the only mistake one can make: to not buy a home and continue paying rent.

Home prices have appreciated 5% annually in Dane County like clockwork for 36 years. There were a few hiccups along the way, but the market has always stabilized at 5%. As I see it, our current market is a correction for our last 2 years of 8-10% increases. With interest rates still at 6.5% and not likely to go up anytime soon, how can we take advantage of this opportunity?
1) Buy - Buy on a down, sell on an up. I am convinced that the usual sellers market will return.
2) Trade up - It will actually cost you less to trade up in a slower market. The price drop on a smaller home will be less than a larger one so the price difference will be smaller.

Let me guide you through the process. From finding a lender, to an initial consultation, through the search process and selling your home. We can help you break the cycle.

Do you have a friend, relative or work colleague who is talking about moving. Put them in the hands of a Professional who cares to improve the peoples lives through Real Estate

Guy Lofts ABR, CRS, GRI
Real Estate Guy
Madison Wisconsin
www.RealEstateGuy.Net
608) 513-1123
Improving client's lives through real estate.