So the title of this blog post may be a little sensational. Real estate markets may not shift overnight, but in a very short time, maybe 3 months, the Madison real estate market has undergone a tremendous shift. If buyers are coming into the market thinking this is the perfect time to grab some undervalued homes in any neighborhood like they could last year, they may be in for a surprise.

Because we have fewer homes on the market in general, and a very small number of homes and condos in key neighborhoods and buildings, experienced real estate agents can tell you that homes are selling faster and for more than asking price in many cases. Not being an economist, I can’t tell you all the macro and regional economic trends that might have brought about this new reality, but I can tell you two of the main reasons this trend is not likely to go away soon: low mortgage rates, fewer homes for sale.

Mortgage Rates Keep Buyers in the Game
Until we see a radical shift upward in the mortgage rates from lenders, we are going to see more people who realize that this is a tremendous time to purchase a home. People stand to save at least tens of thousands of dollars over the lifetime of their homes, if they buy now and monthly payments might never be lower. This long term and short term savings are key drivers in a family’s decision to buy a new home.

Fewer Homes, More Competition
We have never before seen fewer homes for sale in key desirable neighborhoods in the greater Madison area. This means when a new home is listed, buyers are pouncing on these listings. I can’t tell you how many people I have had to tell that certain homes are no longer available just a few days after they been on the market. If potential buyers are only using online resources and not hooked up with a real estate agent, they might be a step slow in getting to these new homes. A step slow means a lot in a market that is definitely favoring the seller. Even if you get to a showing on a home, we are starting to see more bids per home in certain neighborhoods, so competing offers are starting to drive prices above asking price. something we have not seem much in the previous 3 years.

What to do in this New Madison Real Estate Market
My two bits of advice for potential buyers boils down to this:

Don’t Go it Alone
Getting a feel for what you like with casual searches on the internet is great, but when you are serious about finding your home you might need some more help. That someone should be an agent with 24/7 access to the latest listings, and someone who can get you to a showing on the right homes quickly.

Be Prepared
The move from interested buyer to making an offer is happening so fast, that is extremely important to have pre-qualified loan amount when you are starting to look at homes. Other potential buyers might have it, and you will want to do everything you can to stand out as a serious buyer with the backing to close the deal. If you would like to know more about getting pre-approved and how to be in the best position to buy, contact me or Laurel at Forward Realty Group. 608.239.5593