I'm always trying to stay on top of this ever evolving market, so any time I see a social media or news outlet posting about the market, I read it. This recent article caught my eye. Zillow was interviewed in this article, so assume what you want about that, but the cost of waiting numbers hold true in Dane County thus far.
When I look at Single Family homes in Dane County that closed between 02/01/2022 and 03/01/2022 the average list price was $369,500 and average sold was $384,500.
When looking at homes that closed between 04/01/2022 and 05/01/2022 the average list price was $395K and the average sold was $432K. That's a $47,500 jump in the sold price since March (*Closings are still being processed from closing this past week, but you get the idea).
So, if you are hanging up your home buying hat hoping to "wait out this market" over these next few months, your buying power may continue to dwindle with the increasing interest rates and home prices.
"We get this market sucks for buyers. Enough already!"
These statistics and constant bombardment of rising costs can seem overwhelming for homebuyers. It is not meant to scare you into making a rash decision. It is meant to set expectations and educate you. I like to prepare my buyers for best and worst case scenarios each and every time we plan to enter the housing market. The market last year looks different than this year. Heck, these numbers are proof that even the market 2 months ago looks different than this market today!
Waiting and hoping things will change (in my opinion) only leads to further uncertainty and regret. I've had buyers who hung up their hat last year very much regretting waiting for things to change as their income and down-payment has not changed, but the home prices and interest rates have drastically.
Will home prices go down this year? Not likely. Could the competition slow down later this year? Maybe. Will interest rates continue to go up? Likely. Lots of unknowns, and my crystal ball is getting a bit worn out as I constantly try to make predictions!
Moral of the story
If you are interested and ready both financially and mentally to buy a home, then let's hit the ground running with clear expectations and a plan A, B, and C.
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