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Ott Realty Group
Senior Real Estate Specialist SRES
Accredited Buyer's Representative ABR
Mobile: 414-405-5200 (Chris), Other: 262-894-0142 (Jean)
chrisottrealtor@gmail.com
https://chrisott.firstweber.com
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Greetings from your essential real estate advantage!
Sellers: if you missed the Spring market, it’s looking like now could be an even better time to list your property. Buyers: let’s find the right home for you while mortgage rates can still help offset higher listing prices. Let’s explore the advantages of buying or selling now, together. Contact Me today.
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WISCONSIN’S REAL ESTATE OUTLOOK
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PLEASE NOTE: Market conditions can change rapidly across the state. Contact Ott Realty Group for the latest updates.
Weak Supply Hurts Home Sales and Pushes Prices Up in First Half of 2019
SALES
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Sales of existing homes turned down sharply in June, which is traditionally the strongest month of the year for home sales.
June home sales fell 9.7 percent relative to June 2018. Comparing the first half of 2019 to that same period in 2018, sales dropped 5.1 percent, and the median price rose 7.7 percent to $195,000.
Since January 2016, the year over year sales growth has ranged between minus 12.2 percent in December 2018 and 23.3 percent in November 2016. In contrast, prices have increased at an annual pace ranging from 3.2 percent in May 2016 to a high of 10.3 percent in June of this year.
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INVENTORY
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Although inventories do tend to rise during the peak sales periods, Wisconsin’s seller’s market continued in June, with just five months of supply. This was only slightly lower than June 2018 when inventories stood at 5.1 months. Inventories were especially tight in the larger cities in the state. The small rural counties had the most supply at 8.6 months and would be considered a buyer’s market.
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AFFORDABILITY
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Prices continued to rise well above the rate of inflation in June. The median price rose 10.3 percent to $215,000 from June 2018 to June 2019. Price appreciation remains consistent.
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BUYERS: Even though home prices increased by double digit margins over the last year, mortgage rates dipped below 4 percent, so we only saw a minor drop in affordability.
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Michael Theo
WRA President & CEO
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SELLERS: Normally, a strong economy and low mortgage rates produce solid sales growth, but our persistent lack of homes for sale kept June sales below last year’s levels.
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Jean Stefaniak
WRA Chairman
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Source: Wisconsin REALTORS Association, July 2019 Home Sales Report, July 22, 2019
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LOOKING TO BUY YOUR FIRST HOME?
SETTLE THESE THINGS FIRST!
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Narrow Down
the location.
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After you’ve narrowed your search to a few specific neighborhoods, try to visit those areas during different times of the day. Also, speak with some of the homeowners and neighbors about the pros and cons of those areas.
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Get Pre-Approved
with a lender.
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Just about any lender that offers conventional mortgage services can pre-approve you for a mortgage loan. Once you’ve been approved, you’ll know exactly how much money you can offer, which price range you should be looking at, and, closing will take just a fraction of the time.
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Write Out a List
of necessities.
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Necessities should always come first when looking at homes. Some of the variables that you’ll need to look at include the location, the number of bedrooms, and the age of the appliances. Buying a home with older appliances might be cheaper initially, but you could end up spending thousands to replace them in the coming years.
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Establish
a moving plan.
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Every step of your move doesn’t need to be planned out before you make an offer, but you might want to consider taking a couple weeks off work while others prefer to hire professionals to do most of the hard labor. You must contact all of the utility companies, as well, to see if they offer any moving packages that allow you to quickly switch from one address to another.
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6 QUESTIONS TO ASK YOUR LENDER BEFORE GETTING A MORTGAGE
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Is there anything I can do to apply for a better rate?
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Do I need to buy points to get the advertised rate?
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Can I pick my own homeowners insurance?
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What is the rate lock and what happens if we haven’t closed by the time it runs out?
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How long should I expect to wait for the mortgage to close and when can I expect my letter of commitment?
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Can you give an estimate of the total closing costs?
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Source: RISMedia’s Housecall, Looking to Buy Your First Home? Settle These Things First, by Meghan Belnap, July 14, 2019.
Source: RISMedia’s Housecall, 6 Questions to Ask Your Lender Before Getting a Mortgage, by Miron Lulic, June 20, 2019.
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| NAR: HOMEOWNERS ARE RETHINKING STAYING PUT |
Photo Credit: RISMedia
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According to the National Association of REALTORS® quarterly report,
46 percent of homeowners are optimistic about selling, climbing from 37 percent in the first quarter of this year.
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| Appreciation is softening, and homeowners know it, explains Lawrence Yun, chief economist at NAR. |
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| According to NAR statistics, the median national price is up 3.6 percent year over year, a departure from 5.3 percent the prior year. Sixty three percent of homeowners believe home prices have risen, and 49 percent expect them to keep rising. |
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| On the buy side, confidence is strengthening as well. Sixty five percent of homebuyers are optimistic about purchasing, with 38 percent “strongly” believing now is an ideal time. |
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| According to the report, 55 percent believe the economy is improving, a belief common to $100,000 or more earners and residents in rural spots.
“Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters,” says Yun. |
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Source: RISMedia, Homeowners Are Rethinking Staying Put, by Suzanne De Vita, June 29, 2019.
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| 2019 KITCHEN DESIGN TRENDS THAT AREN’T GOING AWAY ANY TIME SOON |
Photo Credit: RISMedia
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AND, PREFERRED KITCHEN UPDATES TO HELP HOMES REACH THEIR MAXIMUM SELLING POTENTIAL
- COSMETIC KITCHEN REMODELS: recoup about 56% compared to partial remodels that recoup about 29%, and full remodels that recoup about 15%.
- KITCHEN CABINET MATERIAL: solid wood has universal appeal and recoups about 85%.
- KITCHEN COUNTERTOPS: both granite and quartz slab style counters take the lead as they can enhance the appearance of a kitchen, even one that may be slightly outdated in other ways.
- MOST POPULAR KITCHEN COLORS: multiple shades of gray were preferred by 53%, black and whites were preferred by 20%, neutrals were preferred by 12%, cool colors were preferred by 6%, wood tones were preferred by 6%, and white and light grays were preferred by 3%.
- MOST POPULAR KITCHEN LAYOUT: an island kitchen is preferred by 92%, a peninsula kitchen is preferred by 30%, a U kitchen is preferred by 27%, an L kitchen is preferred by 24%, a gallery kitchen is preferred by 16%, and a double island kitchen is preferred by 11%.
Credit: Fixr
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Source: RISMedia’s Housecall, 2019 Kitchen Design Trends That Add Value to Your Home, by Yuka Kato, June 28, 2019.
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3 WAYS TO SELL YOUR LISTING FAST
The Longer A Home Sits On The Market, The More Challenging It Can Be to Sell.
PRICING
Some markets are beginning to shift from a seller’s market. As inventories begin to rise, it’s important to target the right buyers from the beginning with a price that fits.
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PACKAGING
81 percent of buyers stated that staging allowed them to visualize the property as their future home. 68 percent of staged homes sold for 9 percent more than an un-staged neighbor’s home.
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POSITIONING
Sell a lifestyle, not just a property. Slightly vague descriptions of the home’s features can actually help create broader interest in the property.
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Source: RISMedia, 3 Ways to Sell Your Listings Fast, by Mark Mathis, July 12, 2019.
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