[John Deininger, of the REALTORS Association of South Central Wisconsin) The January, 2008 statistics are now available, and should surprise no one. In a winter of record snowfalls, where we could reach nearly three times the “average” snowfall; and icy roads, where just venturing out is an adventure; one might assume that numbers would be down. The idea of purchasing a home when you can’t look at the roof, (since it’s covered with a foot of snow); or admiring the landscape, (since it’s covered with two feet of snow), can be a real challenge. Unless there is a strong motivation or need to move, most people are holding on until Mother Nature cooperates a little more.
Historically, January sales drop from December amounts. Dane County residential sales over the last two years showed drops of 21% and 26% from the prior month, and when you compare those results with the 38% drop this year, you can see how the weather has affected the market. When you look at the entire reporting area for the South Central Wisconsin MLS, the residential market looks very balanced. During January, there were 86 reported sales of properties under $100,000; there were 99 reported sales of properties between $100,000 and $139,999; there were 103 reported sales of properties between $140,000 and $179,000; there were 100 reported sales of properties between $180,000 and $249,000; and 100 reported sales over $250,000. Although the market has slowed, there is activity at all price points.
As anticipated, new listings have increased after the first of the year, with some areas doubling the number of new listings boarded in December. While the high inventories create a challenge for sellers, the market remains very attractive for buyers. First time buyers need confidence in the market, and to understand the opportunities that currently exist. People are used to and accept stock market fluctuations that can vary widely, but simply aren’t used to a housing market that does anything but boom. The goal is to educate the public, that although housing is cyclical, they are purchasing a tangible asset that provides shelter and tax advantages. Any investment advisor will tell you not to try to “time” the market, and the same holds true for real estate. The time to buy is now.
Real estate sales data from South Central Wisconsin Multiple Listing Service for August 2009 in Dane County