Where Is Your Local Real Estate Market Headed?
There are still many conflicting reports out in the media on the future of the real estate market . Although, we are starting to hearing more positive stories on the national economic and real estate outlook. The question is, what is our local market doing? According to this chart based on statistics from the Wisconsin Realtors Association the lowest point of the past 4 years was November 2009. I posted near the end of March 2011 and said it felt like the market was improving. Looking at this chart it turns out we were just rounding the corner of a second dip at that time. We ended 2011 about 0.5% negative. Thankfully the Madison area was never hit as hard as most of the country. Where are we headed from here? If somebody forced me to predict the next couple of years in Dane County Wisconsin (Madison area) real estate, here’s what I would say:
- Median prices will be fairly level, but in the positive, a rise of 0.5%-2.5%.
- Sales volume up 4-8%
- We’ll continue to see foreclosures, but the number of them is likely to level out.
- We will start to approach a more typical market with prices up 2%-4%.
- Sales volume up an additional 4-8%
- A reduced number of foreclosures.
2014 and beyond
- We’ll be back in a typical market cycle and forgetting about the housing decline of 2007-2011.