Madison Wisconsin Homes and Real Estate: Sentiment Trumps Interest Rates

Monday, February 27, 2012

Sentiment Trumps Interest Rates

University of Michigan Consumer Sentiment Report

The experts do the reporting and I'm sharing their work. The data supports the evidence---regardless of the interest rates or home prices, how people feel about the present and the future have a lot to do with committing to spending commitments.

HouseHunt.com For 53562

The Middleton Zip code sales data provided by HouseHunt.com shows the average price dropping last summer as consumer sentiment declined. It takes more buyers to move the average price up above the median. As buyers moved to the sideline, regardless of cheap money and glut of houses to choose from, the average price dipped. Then as the confidence improved, people came back and the averages went up.

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If Not Sold in the First 30 Days, Successful Sellers Conceded The Price

Through Mid-September, thirty seven percent (37%) of 126 home owners who sold in 2010 sold without making a single price concession. They typically attracted a buyer within 40 days of going on to the market. These successful owners conceded little on price as they sold for about 97%-98% of asking price.

Those who counted time on the market by months or even quarters eventually sold for an average of 91% of their initial asking price. Price reductions improved their success opportunity. Once their price was reduced to a price favorable to a buyer, the time on the market was short--about 34 days from last price change to accepted offer.

See September 20, Buyer Enticing Pricing

Disclosure

The source of data: South Central WI MLS Type of data: Single family homes and maybe condos and maybe other Areas: Madison and other areas such as McFarland, Shorewood Hills, Middleton, Maple Bluff, Oregon, DeForest, Cross Plains, Dane County, Fitchburg, Verona, did I say Middleton? Dates covered in these blog posts: January 2010 and continuing.

All comments are the relatively well thought out opinions of Tom Meyer. Those opinions are not necessarily shared by Restaino & Associates, other brokers, or the national, local, or state associations of Realtors... in fact, they may be significantly different.