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From the Desk of Ron Restaino, Broker/Owner


This is why we are Bullish on the Market !

A brief history and quick look at the numbers relating to Dane County real estate sales is all you need to know why we at Restaino & Associates are so proud to call Dane County: "Home."

Dane County 2015 – In 2015, Dane County reeled from the announcement that Kraft General Foods would be permanently laying off 1000 employees and permanently closing the Madison manufacturing plant originally known as Oscar Mayer. Shortly thereafter, the pendulum swung the other direction as we saw a proposal from Exact Sciences for a $200,000,000.00 downtown development for which Exact Sciences and their Cologuard unit would be the main tenant. Shortly after approval by the City Council however, the pendulum once again swayed the other direction and Exact Sciences had to scrap their plans. The development and all the supporting employment projections out the window.

Through it all, the Dane County real estate market, typically more stable than most due to high concentrations of City, State, University and County employment, remained not only steady but grew in line with, or faster than, many other metropolitan areas of similar size. The number of single family homes sold in 2015 rose a whopping 16% over 2014 numbers, with average sale prices climbing almost 5%.

Dane County 2016 brought fewer major local impact stories, however national and international developments with local implications were many: Britain voted to leave the European Union, casting concerns over the Euro as currency and creating short lived stock market selloffs worldwide. Acts of terrorism, both at home and abroad, seemed to be becoming a regular story on the news, and oh yes…there was a new President elected in the United States. Once again, the Dane County real estate market remained strong. While the number of unit sales stayed almost identical (6288 vs. 6275 the year before), we saw the beginning of the supply and demand imbalance take effect as the average sale price rose another 5% from $284,614 in 2015 to $299,136 in 2016. Days on market fell as home buyers worked harder and faster to grab a piece of the shrinking inventory.

Dane County 2017 Here we are at the beginning of July 2017. The Federal Reserve has raised interest rates already and looks to be planning for more increases later on in the year. This specter, combined with ever shrinking inventory, has forced buyers to act even more aggressively in their pursuits. Acceleration offers (where the buyer states they will pay $X amount more than any other offer) and homes receiving ten or more offers in a week or less, have become more the norm than the exception. All combined, these external pressures have played a big role in triggering some staggering price spikes. The reduced inventory has resulted in the number of single family homes in Dane County which have sold and closed through June of this year to drop to 3026 units compared to 3186 units during the same period in 2016. A decrease of nearly 5%. During the same year over year period, the area's typical, almost predictable, annual 5% rise in single family home prices has already been surpassed with the average single family home price in Dane County rising 6% (to $317,041.00) in just the first six months of 2017. Not surprising for any market or commodity when an increasing number of consumers chase a shrinking market of supply.

Dane County Beyond: Looking forward? Well, as the great prognosticator Yogi Berra once said, "Predictions are easy as long as they don't have to do with the future!" Everyone had to love Yogi.

While we expect no major changes to the level of government employment in the area, it is wise to remember the words of the Greek philosopher Heraclitus who once said, "The only thing constant in life is change." Those words, spoken around the year 500 B.C., are still not to be taken lightly some 2500 years later.

Continued interest rate increases by the Federal Reserve will at some point take their toll on real estate and financial markets. When, is anyone's guess. Major international events can also have effects on markets. Even if not in a direct numerical sense, in a manner which affects the confidence of the consumer when choosing whether or not to move forward on major purchases such as housing or other durable goods.

As time continues to unwind, we expect the Dane County real estate market to fare better than most metropolitan areas of comparable size, and to remain more resilient in the face of external pressures. Supporting our theory: We all watched sadly as, after 98 years, the last meats were sliced and packaged at the Oscar Mayer Kraft plant in Madison on June 29, 2017. Less than one week later however, news agencies reported a major redevelopment plan in the works near West Towne Mall which could bring 1000 new jobs to Madison. Also, in that same week Exact Sciences confirmed that they were back in the market and again considering a move to Madison, which could include acquiring the Spectrum Brands facility on Madison's west side (former headquarters of Ray-O-Vac batteries). A move which, if brought to fruition, could bring hundreds of additional high paying jobs to the area.

The strength and resiliency of the Dane County real estate market has proven itself time and again ever since the Restaino era in real estate began back in the mid 1970's. We do not expect any significant deviations moving through the balance of 2017 and beyond. As always, we want to thank you for considering us your Realtor of choice for the past 4 decades. We look forward to continuing our service to you in the future.

Ron Restaino

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Madison Nite
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From A Lender's Perspective...

U.S. Housing Starts and Building Permits — May
Mother Nature + Hiring + Higher Input Costs = Another Drop in Starts
Jennifer Lee, Senior Economist • jennifer.lee@bmo.com • 416-359-4092

It has not been a very uplifting week for U.S. economic data....softer inflation readings, weaker retail sales, drop in manufacturing production, and now, an unexpected decline in housing starts…..all in the same week that the Federal Reserve raised rates.

U.S. housing starts unexpectedly fell 5.5% in May, the third decline in a row, to 1.09 mln units annualized, the lowest level since September. The last time there were three consecutive declines was in October 2009. And, the pullback was spread out between both singles and multis. This was unexpected, as a like-sized rebound was expected from a month that saw the most rain in about 60 years. There could be some impact from the deadly tornadoes and floods in the South and the Midwest at the start of the month. All of the decrease was in the Midwest and the South; starts excluding those two regions were actually up 1.0%. The May 2017 Beige Book, using information collected up to May 23rd, cited "unusually wet weather" negatively affecting some regions.

So, Mother Nature likely played a role. But it shouldn't impact permits, and they were also unexpectedly lower. Building permits fell 4.9% in May, the 2nd tumble in a row, to 1.168 mln units a.r., the lowest since April 2016. Again, fewer permits were issued for single-family as well as multifamily homes, and everywhere except for the Northeast. But alas, this is where factors such as input prices (think wood/lumber and steel) and labor (think of the difficulties hiring qualified workers in various industries, and the high quits rate in the construction industry) kick in. Those two big factors could hold back more activity. Something to ponder.....

The Bottom Line: There are a number of factors that likely played a role in slower construction activity. But this is yet another indicator that has disappointed and will weigh on 2nd quarter growth. No changes to our real GDP forecast....still expecting a rebound from that sluggish-seasonal factor- impacted-Q1. But downside risks are evident.

Your BMO Harris Bank Mortgage and Premier Services team:

Mike Farber
Officer
Mortgage Banker
7447 University Avenue, Middleton, WI 53562
Michael.Farber@bmo.com
M 608-316-0339
F 855-887-0444
NMLS#: 1081253

Michelle Acker
Officer
Senior Premier Banker
401 N. Segoe Road
Madison, WI 53705
Michelle.Acker@bmo.com
T 608-231-5519
F 608-231-5549
NMLS#: 608746



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Restaino Relocation Team

Pictured left to right:
Nadya Nahirniak-Hansen, Relocation Director
Miki Smith, Relocation Consultant
Gail Johnson, Corporate Relocation Manager

800-637-1178
608-395-3103

A Leading Global Relocation Division Assisting Candidates,
Transferees and Families Moving In and Out of the Madison Area

Restaino & Associates Relocation Division is a vital resource for your recruitment and relocation needs. Our dedicated team prides itself on assisting your recruitment efforts to acquire world class talent to grow your company.


Recently, Nadya Nahirniak-Hansen and Gail Johnson attended the 11th Annual GMA SHRM Human Capital Conference hosted by the Greater Madison Area Society for Human Resource Management on May 3rd at the Alliant Energy Center.

Relo Event Photo
Pictured L to R: Gail Johnson, Cy Hakeman, Key Note Speaker, Nadya Nahirniak-Hansen

The conference held record number of attendees that had a day filled with two key-note presentations, break-out sessions on multiple HR topics, and ended with a well-attended networking reception.

Restaino & Associates relocation division was the keynote lunch speaker sponsor.



What's Happening



Madison is one of the top cities for bicycling in America!
Visit Website

Concert on the Square on selected Wednesdays in July at 7pm
Bring a blanket and immerse yourself into the music on the Capitol Square
Visit Website

Olbrich Botanical Gardens
Stroll 16 acres of outdoor gardens and stunning landscapes.
Summer concerts in the gardens, Tuesdays, 7pm
Blooming Butterflies- Thursday, July 20 – Sunday, Aug.13 from 10am-4pm daily
Visit Website

Dane County Fair- July 19-23
Free Daily Entertainment, Food vendors, Kiddie Farm, Carnival specials, Youth Exhibitors and more!
Alliant Energy Center
Visit Website

Maxwell Street Days- July 14-16
Sidewalk sales & fabulous food on State Street
Visit Website

Opera in the Park- Saturday, July 22 ( rain date July 23) at 8pm
Garner Park, free admission
Visit Website

Isthmus Paddle & Portage
Saturday, July 29th at the James Madison Park starting at 7am ending at Olbrich Park
Visit Website

Henry Vilas Zoo
28-acre, free admission, 9:30am-5:00pm daily
Ride the train and carousel
Visit Website

Goodman Pool
Large pool with 2 water slides, diving boards, lap lanes and shallow toddler area.
Municipal swimming pool
Visit Website

Devil's Lake State Park
WI's largest State Park, open year round, 8am-11pm daily
Hiking, camping, canoe, concessions and rental equipment.
Visit Website

Save the Date: Wisconsin State Fair
August 3-13, 2017
Headliners: John Mellencamp, Kip Moore with Maggie Rose, The Beach Boys with the Temptations
Food, strolling street entertainers, parade, live music, exhibitors and entries.
Visit Website

Save the Date: Middleton Good Neighbor Festival Friday, Aug. 25-Sunday, August 27
5k Run/Walk is family friendly event on Saturday, Aug 26 at 9 am. Kids 6-12 years can participate in the 1k race. Each participant will get a completion ribbon/medal or prize. Craft fair, Parade on Sunday, food stands, live music, raffle and more!
Visit Website

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Thompson kane

Cabinet City






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Restaino InBusiness Winner 2016






Restaino & Associates Relocation Division, 26 Schroeder Court, Madison, WI 53711 608-395-3103
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