FROM THE DESK OF RON RESTAINO
February 1st, 2018
What Does A Record-Breaking 2017 Mean For The Future?
Back in December, we predicted Wisconsin could see a record year in home sales. Guess what? We were correct! In fact, 2017 was the third straight year of record-setting sales in the state. Despite a decline in December sales of 3.3 percent over 2016, the strong economy pushed 2017 annual sales up 1.4 percent past the previous year with more than 83,000 units sold with an average price of $174,000, up 5.5 percent from 2016.
These outstanding numbers seem almost impossible considering the continuing low inventory of properties for sale. The state’s low unemployment and mortgage rates coupled with steady job growth has fueled the housing demand. As we’ve stated before, there are no shortage of buyers ready to purchase. Just imagine how many units could have sold in 2017 if there was a substantial inventory to select from!
Of course, the robust economy paired with the low inventory of homes for sale means there is a very high demand for homes… and homes are selling at an extremely brisk pace. In December, most homes were on the market for 80 days. To put it in perspective, that’s down from 99 days a year prior. This has pushed the average home price up 5.5 percent from 2016.
Regarding supply, rising prices may incentivize current owners to sell their homes, especially Baby Boomers entering into their 70s. Eventually, their increased need to make health-driven decisions about where they reside may increase the supply of homes. These factors could lead to minor supply improvements in 2018.
Regardless as to how quickly all this will play out, know that you can count on Restaino & Associates to remain the area’s respected leader of comprehensive relocation assistance. Whether it is an individual or a corporation moving in or out of the greater Dane Co. area, we are able to customize services to cater to each client’s needs. If you have a client considering relocation, access our specialists at www.MadisonRelocation.com. They can navigate you through the entire process starting with a complimentary customized area orientation tour, employment guidance for partners with our network of HR/recruiters, rental research, home finding and much more.
Here’s to a productive February. Restaino & Associates offers our knowledge and expertise to clients and partners in order to make every move thoughtful and well-informed.