Today’s post continues our series examining the January 2011 South Central Wisconsin Real Estate Statistics and what they mean locally for our buyers and sellers.
The South Central Wisconsin Real Estate market has started off with a bang in January of 2011 – exceeding the past two January reports and matching January 2008 levels. This is a great news for our region and is indicator of a recovery to a more normalized housing market.
Source: South Central Wisconsin Multiple Listing Service
Keep in mind homes sales were artificially stimulated with the First Time Home Buyer’s Tax Credit in 2009 and 2010, especially where we see the high spikes in sales. Overall, January 2011 was a continuation of the rise of pending home sales we have experienced nationally since the second quarter of 2010, without outside intervention of the First Time Home Buyers Tax Credit.
Source: South Central Wisconsin Multiple Listing Service
As far as median sales price for single family home, in Dane county, the sales price was 4.8% above last January with a median price of $203,912. This matches the predictions made by 100’s of economic experts, that today through 2015 we will see a 12.31% increase in price nationally.
What does all of this information mean for buyers in the Madison and South Central Wisconsin area?
If you are waiting for a bargain, you may want to reconsider. When purchasing your home, there is a difference in price versus cost. The price of the home is influenced by market conditions however the cost is influenced by interest rates.
Take a look at the chart below. It doesn’t matter when you purchased your home, if the price is the same the cost is impacted by your interest rate. Because of the difference in interest rates, it is actually more affordable to own the same house today than it was in 2004.
As quoted in the Wall Street Journal “If prices come down another 10% but interest rates increase by one percentage point, that would mean the same monthly payment today versus waiting”. Don’t get caught in the waiting game. Interest rates have been on the rise since mid 2010, and as the January 2011 local statistics show home prices are on the rise as well. Waiting for a rock bottom bargain price could cost you more in the long run.
Not sure how to get started in the home buying process? Contact us today for your no-obligation consultation. Our team of real estate professionals have the knowledge and experience to make your home buying dream a reality.
You can also download the entire January 2011 South Central Wisconsin Real Estate market statistics in our free Market Update Report.
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