The real estate market in Wisconsin had a solid first quarter of the year. Compared to Q1 in 2019, statewide:
The graphs below give insight to how the local real estate market performed.
March racked up some impressive housing stats. Compared to the respective month last year, statewide:
Thanks to the severe shortage of homes for sale, last month was the first time the median home sales price in March exceeded $200,000 in WI. It’s important to keep in mind that closings that took place in March, likely had signed contracts a month prior, before the virus hit and the stay at home order was issued in Wisconsin.
Since real estate is classified as an essential service, real estate firms, banks, and title companies are able to continue operating. Fortunately, that means you will likely still be able to close on your home during this ambiguous period.
The shortage of homes for sale, seen pre-pandemic, has intensified as a result of a spike in withdrawn listings. Understandably, many sellers have chosen to wait to sell their homes until the stay at home order is over in their area.
Despite everything going on due to the outbreak of COVID-19, a strong seller’s market is anticipated to persist for the time being. It may be surprising, but we are still seeing competing offers on properties, even during a pandemic. The combination of pent up buyer demand, historically low mortgage rates, the shortage of homes on the market, and moving into the busy real estate season all point to the likelihood of sellers remaining in control when it comes to negotiating.
Home prices are expected to continue to rise, possibly at a slower rate, until inventory improves, as buyer demand remains strong.
Due to the conditions of the housing market over recent years, many home owners have been able to build home equity. Move-up buyers, those looking to sell their lower priced homes and buying a higher priced home, may find excellent opportunities to sell high, and negotiate a good deal when purchasing.
The bottom line is that there are still people that need to sell or buy a home. Temporary interruptions are expected, as some buyers and sellers decide to put their plans on hold. However, the housing market is expected to pick up where it left off, as things begin to normalize again.
The good news is that technology has offered ways to market or shop for homes virtually, establishing a safe way for buyers and sellers to remain engaged. The Covid-19 pandemic has also spurred new ways of selling or purchasing a home during this time.
Source for information and data: Wisconsin REALTORS® Association (WRA) March 2020 Home Sales Report.
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