Real Estate Market Hot in Madison

Market Update for Dane County and First Weber

The past few years in almost every market in the United States has been anything from slow to depressing for all real estate sales.  With the market improving and the local area seeing a lot of job growth, higher rents and an unprecedented start to the first 5 months of real estate sales, the market is starting to gain momentum.

Here are statistics( stats from SCWMLS service) that show the true picture of the market.

South Central Five months Year to Date:

• Units closed are up 17.5% over last year for single family and condo.
• Average sale price is almost even at $168,207 this year vs. $169,386 last year.
• List to sale ratio is 94.66% up from 93.84% last year in the same period.

First Weber South Central Five months Year to Date:

• We are up 25% in closings.
• Our average sale price is up by 1%.
• Our market share has gone up from 16.64% to 18.03%

Dane County Five months Year to Date:

• Sales are up 16.6%.
• Average sale price is down 3.6%.
• List to sale ratio is 96.07% up from 95.71%  

First Weber Dane County Five months Year to Date:

• We are up 24% in closings.
• Our market share has jumped from 18.82% to nearly 20%.

We have experienced month over month sales increases for 11 months in a row in Wisconsin.  Sellers are more realistic and better at getting their homes priced right and having their homes decluttered and staged. 

Buyers have more confidence and are acting with less resistance than we have observed in the last few years.  This is evidenced by the fact that they are looking less and buying more and that the offers are much more likely to stay together once accepted.  

With interest rates where they currently sit, 3.875% for a 30 year mortgage, it is one of the best opportunities for buyers to buyer and sellers to sell their home.

Spring has Sprung

Spring is HERE!  The weather has completely changed when 30 days ago we had a large winter storm and now it is consistently 60-70 degrees outside.  Our allergies are early, flowers are blooming and trees are sprouting with new life.  I have even witnessed several diligent home owners cutting their lawns!!!

With this new season coming sooner than expected, the activity in real estate in Dane County has bloomed as well, especially in Madison and surrounding areas.  Sales are up over 15% while median prices remain slightly below January and February sales were in 2011.  Inventories all over the county for Single Family homes are down over 8% from last year.  With the increased demand starting earlier than normal, inventories decreasing and rates around 4%, this is turning out to be a hot start to Spring in 2012!

For a good read and full statistics please read: http://scwmls.com/public/stats/stat_search/monthly_composites/2012/monthly_stats_february_2012.pdf

I don't want to have any misconceptions to the last paragraph.  Please don't  believe it is turning into a sellers market, as we are a long way from this point.  Currently most price ranges are sitting with 11-30 months of absorption.  This means that if we added no more listings to the pool of homes available, at the current pace homes are selling, it would take 11-30 months to sell all of the homes.  The range of 11-30 months is coming from a price range of $100,000 to $1,000,000+ single family homes and condos.  A "normal" real estate market is 8-10 months of inventory.  This is close in only one price range: $100,000-$149,900 homes and condos.

It is still a buyer's market as a whole, but some pockets in the Madison Metro have felt like a seller's market with multiple offers, higher than asking price bids and quick sales!  Make sure you talk with a professional Realtor about the market in your area, so you can get a clear picture of the market, and how your home fits in that market.  We all want the most money out of our homes when we sell it, the best way to understand it is to educate yourself on the market around you and lean on a professional to help you through the pool of information and endless possibilities.

Have a great Spring!

My First Weber: 10 Tools to Help You Find the Perfect Home

My First Weber

With so many options to choose from in the real estate world.  You want to know that the information you are looking at is up to date and accurate, plus like most of us want to know that you can view the sold information.

This is all possible with a free My First Weber account on www.firstweber.com!

Once you have signed up you can set up your own search areas, see sold properties for the past 6 months.  Beyond the basics, when homes in your searches are going to have an open house or have a price adjustment, you get an automatic email.

The local knowledge and local attention to the market is what makes First Weber Group and their applications the best in the business.  Zillow and Trulia have their place but true local knowledge should come from a trusted local source.

If you have an Android or iPhone/iPad, then you can take advantage of the amazing First Weber App.  Just download the free app, login with your My First Weber account information and shazzam...you are now synced with your online account.

One advantage of the apps is that you can draw your own search areas and get instant data on the market, active and sold!

There are a lot of features in your free My First Weber account.  To register for your My First Weber account, click Here.  Check out this blog for more information: First Weber Blog

Happy Searching!

Historic Loraine Hotel Condo In the Heart of Madison

123 W. Washington Ave #505, Madison, WI

It is extremely fun to list homes and condos.  Especially historic properties like the Loraine Condo.  

The condo has almost 1300 sq. feet of living space, open and spacious floor plan has maple hardwood floors & cabinets throughout. Large kitchen with granite counter tops, breakfast bar & ample counter space for food preparation. Open concept living w/ dining, living & kitchen open to each other is made for entertaining. Fireplace in the living room. Master suite has 3 closets with one of them a walk-in. Dual vanity sink, linen storage, shower & soaking tub. Workout facility, common areas and open air terrace to share and use anytime.

www.firstweber.com/1644683

The Loraine was originally conceived in 1922 by Milwaukee hotelier Walter Schroeder as a 250 room hotel. Architect Herbert Tullgren designed the Tudor Revival structure and construction was completed by June, 1924. Hotel Loraine (named after a niece of Mr. Schroeder who died during the course of construction) was so popular that a 100 room addition was completed one year later in 1925.

Hotel Loraine was the largest and arguably the most prestigious hotel in Madison. At an initial cost of $1,100,000, Hotel Loraine was the most expensive commercial building in Madison. Its prominent location on the site of Henry Proudfit's home provided a seamless link between the affairs of Wisconsin's government at the State Capitol and the academia at the University of Wisconsin.

Hotel Loraine was renowned for its grand lobby, exquisite dining, and the fabulous Crystal Ballroom; site of many debutante balls, wedding receptions, and Madison's largest social functions.

Hotel Loraine hosted numerous notables during its history including Ethel Barrymore, Gloria Swanson, Mae West, Harry Truman, and John F. Kennedy.

The Schroeder family operated Hotel Loraine until 1968 when the structure was converted into office space for the State of Wisconsin.

The Department of Justice most recently occupied The Loraine Building until its new building was completed in October 2001.

The new millennium has brought new life to The Loraine. The City of Madison designated the building a national landmark due to its history, location and architectural significance. Furthermore, this gem of a building has been carefully restored and masterfully renovated back to residential use as luxury condominiums.

Office/Den or Ample space for a guest suite

Office/Den or Ample space for a guest suite

Full Bathroom with Shower Stall

Maple Hardwood, Tray Ceiling and Fireplace

Stackable Laundry

Granite and Stainless Steel Appliances

Master Suite leading to Closets( 3) and Master Bathroom

Shared Outside Patio

Common Area Terrace-Open Air with Grilling Station

Common Gathering Room

Lobby Entrance

Mail and Lobby 

Is Getting A Loan Difficult In This Market?

Looking at KCM Blog today, it tosses out the topic that many buyers don't believe is something that affects them....Not being able to get a loan!

This doesn't state that money isn't available, it states the pitfalls and items that can affect them in this lending environment.

There can be a lot of issues if you don't prepare for getting a loan and buying a home.  This is why it is so important to meet with a local Realtor and get their advice on what to do to prepare for getting a loan for purchasing a home.

Read more about all ten factors to understand when getting a loan: http://www.kcmblog.com/2012/01/23/10-surprising-reasons-you-cant-get-a-home/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28The+KCM+Blog%29

New Seller Vacant Land Real Estate Condition Report-Mandatory

2011 Wisconsin Act 107
Vacant Land Condition Report

On December 7, 2011, Gov. Scott Walker signed legislation into law that requires sellers of vacant land to complete a vacant land condition report (VLCR) at the time of the sale. The new law, 2011 Wisconsin Act 107, requires all sellers of vacant land to complete the VLCR, except for persons who are exempt under current law, which are personal representatives, trustees, conservators and fiduciaries appointed by the court. The new law will go into effect July 1, 2012, and it received overwhelming bipartisan support in the legislature.

Read more about this new law here:  www.wra.org/2011VacantLand_Memo

Updated First Weber app for iPhone, iPad, iTouch and all Android devices

New First Weber App on iOS and Android

With all of the tools out there to help you see the homes that you want, when you want, you need to check out the updated First Weber app on the app store.  The Android version will be available by the end of December for release.  

I am going to go over the new features and new tools to help you understand the market and get tons of details on any home that is listed on the MLS.

First Weber app allows for the following inside the app:

• Automatic location based search: your location is immediately found when the application is opened and all of the properties around that location are shown.  You can filter the search by different criteria.  Use the + sign to select different criteria, map style or life style points of interest.

 

• At the bottom, the circle is the ability to draw an object to save an area. It will show you the active and sold properties located in the area that was drawn, show you stats and allow you to save it if you want to see it anytime in real time!  All of this can be synced with your My First Weber account that is free on www.firstweber.com

 

•  If you find a property that you like, click on it and find out the details.  You can share the listing, save it as a favorite( syncs with your My First Weber account), request a showing and even call, text or email the listing agent about this property. 
• You can view the details fully by clicking on details.  
• Get directions on your phone to get to the property that you like.
• If you turn the phone or tablet sideways, you will see the photos in landscape view.

 

 

 

• As a  note, if you are working under Buyer Agency with any company, please contact your agent about wanting more information or a showing on any property. 
• The next area that you can click on is the First Weber logo in the bottom right hand corner.  
• There you can start a new map search to search any where in the entire state of Wisconsin!
• Go to your saved map searches 
• View your favorites
• See the homes that you have recently viewed
• Sign into your My First Weber account to sync all of your information
• or Find an agent in the directory

Another reason that First Weber is your source for buying and selling real estate.  We are committed to the latest tools and technology to help you in your real estate goals.

Happy Searching! 

The Return Of Real Estate In Madison, WI

As I am sitting in the waiting room of my financial advisor at Merrill Lynch, I always like reading the latest news and articles of the Wall Street Journal, Harvard Business Review and Fortune Magazine.  This month I chose Fortune.  The headline of the entire magazine is where I got the title for this article.  Shawn Tully writes a very good article talking about all aspects of real estate from mortgage lending, new construction and foreclosures and what all of these pieces not only mean to us as Realtors but what they mean to this market.

Tully starts off talking with a rancher from Texas he knows.  The rancher and home builder, Mike Castleman, states “the talking heads of the world that are down on real estate will hate to hear this, but America needs to build a lot more homes.”  Castleman is the CEO and founder of Metrostudy.  His company analyzes real estate data and new home inventory over the past 30 years.  The key figures he collects are the number of homes that are vacant and for sale in each city and the number of months it takes to sell all of them.  With all of this information, his company can then tell if there is a shortage or surplus of new housing.

In the 41 cities he studies, 78,000 homes are now either vacant and for sale or under construction.   This is ¼ the number of 343,000 homes that were on the market at the peak in 2006.  If market conditions change and normal consumer spending resumes, we will have a shortage.  Castleman believes this is where we are headed and soon.

Consumers are confused due to the over whelming amount of ever contradicting news.  One day it is the best time to purchase real estate and the rates are at historic lows.  The next day, you hear that the market went down 500 points and real estate prices are falling.  What do you believe?  All of it has truth and relevance.  The market, depending on where you live, is the best time to buy to higher inventory levels and historically low prices.  Plus with the mortgage rates as low as they are now, it is cheaper to own than rent!  Karl Case from Case-Shiller Price indices agrees that the housing market is recovering and is in his words “the little engine that could.” 

To truly see where prices and real estate are headed is looking at key fundamentals.  The basic forces that govern the market are the cost of renting versus owning and the level of new construction.  With this view we are heading back to a new market view of an improving market.  Prices have come down 30% nation wide and harder hit areas saw 55% decrease in values.  The American dream declined and possibly was forgotten for many years since the 2006 bubble burst.  A return of that dream will start to decrease inventory, start new home construction and see a rise in pricing.

Mortgage money is available and credit standards are at historic levels as well.  Affordability is also a large piece of the market and confidence returning.  Mark Zandi, chief economist at Moody’s Analytics, has found that homeowners now pay 9.8% of their income in after-tax, tax and insurance payments toward the mortgage each month.  That is down from the 17.2% it was in 2007.  This is so low that he looked and found that this is as low as 1999.

Another factor to look at is renting versus owning.  In 28 of the 54 markets studied, it is now cheaper to own then rent.  Every market is different and that is why Realtors are so important to help their buyers and sellers understand what market they live in and what to expect in the current climate.  Add job growth to this equation and then confidence will start to gain.  If renting is more expensive than owning, the market will start to creep up every so slowly.  Some markets will start to see them move faster due to the shortage of existing homes and new construction.

To wrap this up, there will be return to the market and we are seeing those signs in areas around South Central WI.  Once demand starts to increase, then other sectors will need to ramp up to keep up with demand.  This will naturally drive pricing up.  In order to get a good price on a home, Castleman’s advice is to “Beat the Crowd!”

The real estate consumer is not always right?

In today's market whether you are a buyer or seller, the market is ever changing. Whether you are selling your home and the agent you hired didn't give you the actual market value but instead took the price that you want to ask for the home or you are a buyer looking for a deal in this market, hire an agent that is going to not only help you every step of the way, but who will truthfully state the market value and what your options are in this market.

Every market is different and sales can vary from city to city and even neighborhood to neighborhood. Real estate professionals know this best and deal with the market everyday. In Teresa Boardman's article: " The real estate consumer is not always right", she states that "when we go along with what the customer or client wants, we are not acting in the client's best interests, or even in our own. And that rule applies to matters other than price, too."

Buyers and seller's have access to an enormous amount of information and TV shows that cover all facets of real estate. Whether it is someones first home or a renovation over haul show, most consumers take what happens on these shows as the truth in their area.

A Realtor has access to and works in the field every day and can provide you with correct data about your home or a home you are looking to purchase. The market may not be for everyone right now but you have to assess your situation and your personal economy to determine what is best for you.

I would personally enjoy working with someone who tells me what I need to hear rather than what I want to hear. It may be scary or hard to listen too, but it is more respectful if I get the truth.

What type of Realtor would you rather work with? I would love to know your thoughts!

VA Loans and Tax Credit Extension

Recently the office of Veteran's Affairs announced a few updates to the VA loan program and now an extension of the tax credit is still available for active members of the armed service. This is very difficult information to find and I wanted to post this out there for all of the men and women that serve our country. They deserve our thanks and help in manners like this that can benefit them to own a home.

Here are some of the details that I was able to find:

• Tax credit is good until April 30, 2011. This means an accepted offer has to close by this time.
• $8,000
• No repayment penalty of the tax credit
• You don't have to live in the home for 3 years. This can be due to a variety of different reasons( reassignment, etc)

VA Loans are still available and are the only loans that are offering 100% financing. !00% financing still means that the veteran can have closing costs, escrow of taxes, and many other costs that will need to be brought to the closing table. A great way for these to be covered entirely or partially is asking the seller to pay up to 3% of the purchase price in closing costs and prepaid. A great resource is http://www.benefits.va.gov/homeloans/docs/2010_county_loan_limits.pdf for loan limits. Here are some other guidelines with a VA Loan:

• Loan limit of $417,000 unless you live in any of the other high cost counties see the pdf above.
• No private mortgage insurance
• 100% Financing
• No Mortgage Insurance
• No Minimum Investment or Down Payment needed from the buyer
• Lenders are limited to only charging 1% Origination Fees
• Seller must pay the entire escrow fee (Lender pays this if it’s a refinance)
• If the property does not appraiser for the sales price, the Veteran’s earnest money is protected
• No Credit Report or Appraisal needed for VA Interest Rate Reduction Refinance Loan (A VA-to-VA refinance with no cash-out. Often called VA Streamline refinances).
• Low rates
• No limit in seller’s concessions used to pay Veteran’s closing costs
• 4% Seller’s concessions for non-VA costs as well as Veteran’s debt (That’s right, the seller can pay off some of the veteran’s debt in the transaction).
• Can be used for a Stick Built House, Manufactured home (must be on land), Condo, Townhouse, and multi-family from 2-4 units
• No Funding Fee for disabled Veterans (It doesn’t matter if the veteran is 10% disbaled or 100% disabled, they won’t be charged a Funding Fee).

Here are some basic guidelines for a VA loan( check with a VA lender to get all of them):

• Most lenders will want the Veteran to have at least a 620 credit score
• You must be 3 years separated from a foreclosure
• You must be 2 years separated from a Bankruptcy
• The Veteran should have at least 3 tradelines on credit to review.
• Nobody can be on the VA Loan with the Veteran other than a Spouse
• Surviving Spouses of deceased Veterans with VA Benefits can also use a VA Loan
• VA Loans are assumable, which means you can sell the house and pass the loan to another Veteran as long as they can cover the difference between the sales price and the existing loan.
• VA Funding Fees, which is a fee that goes directly to the Department of Veterans Affairs, varies depending on whether the Veteran was full-active duty or reserve, how much the Veteran puts down, the type of transaction (Purchase, Streamline refinance or Cash-out Refinance) or if the Veteran is disabled.

Whether you are looking for a home, condo or income property, finding a local lender and local Realtor will help you in the process. Please feel free to pass this along. It is really important that veterans understand all of the benefits available to them.

You Are Not A Lead

More than ever more buyers and sellers of real estate feel like a lead. I have read a lot of articles and watched videos all over the internet where they feel like a lead.

This is disappointing! Having a connection to your clients and providing them what they are interested in is our job as their Realtor. They look to us to provide them with more than just the average agent. They want our knowledge, professionalism, negotiating skills, and marketing! This is why they pay us to help them sell a home or help them buy a home.

Separate yourself from the mass of other agents. Provide service above and beyond their expectations! Make the experience more than they could have imagined and connect with them. Having a client for life is priceless and what a better ad or marketing piece than a past buyer or seller who talks about their experience with you to others.

People talk about real estate and the economy. Know what is happening in your local area. Know the average days on market to sell a home as a whole and the area in which you either have a niche or were your clients are located. Understanding prices and market list price to sale price.

In Madison and the surrounding communities( Fitchburg, Verona, Monona, McFarland, Stoughton, Sun Prairie, Middleton, and Waunakee) the area is healthy and jobs are available. The housing market does have some REO and shortsale transactions, but the majority of sales are traditional sales between a buyer and seller.

Each market is different and each neighborhood is different but the reason we are here is to provide this to our clients and to new customers that are looking for the same level of service, knowledge and professionalism.

Make your clients feel like you are there for them and they are not just a lead! They are with you because of who you are and what you make them feel like and what you proved them. Respect them and in turn you will be successful in the long run.

Is It An Excellent Time To Buy?

Why Own?
There are many great reasons to consider owning a home:
You'll have a place that is yours! You'll own it, have a place to raise your children and become a part of your community. You can pass your home down to your children, and their children, creating security for generations to come.

You may pay less to own a home than you would to rent – and it's yours at the end! Homeownership can reduce the federal income taxes you pay. You can deduct the interest on your home mortgage and property taxes you pay on your home on the tax returns you file each year. These tax savings partially reduce, or offset somewhat, the actual cost of owning your home.

Your monthly payments won't ever go up if you choose a fixed-rate mortgage! If you choose a mortgage with a fixed-interest rate (one that stays the same for the life of the loan, say 30 years), you'll pay the same mortgage payment each month for the entire 30 years of the loan (if your taxes go up, your escrow will go up – increasing your monthly payment).

You'll build a good nest egg!Owning a home and building equity is the single greatest source of financial security and independence for the majority of people who've taken this step.

With the current inventories of homes and condominiums and historic low interest rates, it is a great time to be in the market to buy.

Wisconsin Economies: Are We Affected by Mortgage Problems

In the January addition of Wisconsin Real Estate magazine there is a great article showing how localized real estate really is. A new report issued by the U.S. Conference of Mayors states that the "fallout from the mortgage crisis will be minimal in Wisconsin compared to much of the rest of the country". Even though the economy is declining, the decline is not coming from Wisconsin. Most of the major metropolitian areas in Wiscosin are projected to have product growth. They are Appleton (2.7%), Eau Claire (2.8%), Fond du Lac (3.1%), Green Bay (2.9%), La Crosse (3.1%), Madison (3.4%), and Milwaukee (2.5%). They also believe that west central and northern Wisconsin are not expected to lose any ground due to the mortgage crisis.

Wisconsin's, especially Madison's, economy is diversified and continues to grow at a steady pace. Our economy has historically been very even. This keeps Wisconsin from booming in a really good market and a bubble from bursting in a bad market. As projected by the Wisconsin Department of Revenue the"higher growth rates in Madison, Appleton, Green Bay and La Crosse metro areas" will offset any slower growth in other regions like Milwaukee and Racine.

Facts:

• Wisconsin's foreclosure rate is half the national average.
• Wisconsin consumers have an above average credit score and lower debt levels.
• Wisconsin technology, and other business sectors, are expanding and creating wealth.
• Export sales are up 50% from 2006 numbers.

Overall, the economy will be strong and with interest rates at near historic lows, the real estate market is projected to be a good year. What a great Buyer's market in 2008!