When is the Best Time to Buy Real Estate in Wisconsin for the Best Deal?
The Secret Of Buying Real Estate In The Fall / Winter In Wisconsin is that you can save tens of thousands of dollars by purchasing now vs. in the spring or summer. This is historically consistent and history is likely to keep repeating itself.
Fall Discounts:
Historically in Wisconsin prices go up in the 1st half of the year and fall in the 2nd half of the year (see last 3 years chart below). You can actually purchase the median home right now for less than you could have 5 months ago.
If you had bought in December of 2022 you would have saved $57,000 on the median price of a home versus buying in June of 2023. Buying in December of 2023 would have saved you $60,000 versus buying in June of 2024.
2024 is proving to be similar where we see the seasonal fall / winter shift down. The median price is already down by $30,000 through September. Purchase by end of the year to lock in the seasonal discounts.
Less Demand:
There is historically less buyer demand in the fall and winter so you will have less competition. Not only does less competition mean you get a better price on the house, but you will likely get better terms too. During the spring buying frenzy you may not get your offer accepted with a bunch of contingencies such as appraisal, home inspection, sale of your own home, etc.
But in the fall, with less competition, those better buyer terms are more likely to be acceptable to a seller. The chart below shows the relationship between the average closed price and the seller asking price. In spring and summer buyers are having to pay well over asking price in order to win. In the winter, the sold price is at or even below the asking price. This illustration represents the amount of competition in the market.
If you are looking to purchase any time in the next 12 months, the best prices, best terms, and least amount of competition you are likely to see is over the next 75 days.
Jump online and search all homes currently available at www.TFRwi.com.
Election Year:
Yes, there are a fair number of people sitting on the sidelines until after the election. It happens every election. While there is traditionally less demand in the fall and winter as shown above, the 2024 election will likely slow that pace even further than normal creating more opportunities for active buyers.
Annual Appreciation:
And don’t wait long because even though we see a seasonal price reduction, year over year prices just keep climbing. The graph below shows home and condo values since 2009. Based on inventory and demand we expect prices to keep climbing. The longer you wait, the more expensive the property will likely be and in most cases wages are not keeping up with real estate appreciation.
Inventory / Days on Market:
When comparing the fall of 2023 vs. 2024, we are actually seeing slightly more inventory on the market this season. Over the last 3 years the # of days a home sits on the market in the winter is typically 2-3 times longer than that of the summer. These two factors mean buyers have a little more time to act, it supports the price reductions we see in the season, and provides winter buyers the opportunity to make a slower more informed decision.
Interest Rates:
Interest Rates are near their 2 year low (see below). This provides buyers with more buying power or more affordability at their price point. More great news is coming as the Feds have stated they plan for more rate cuts and top economists are predicting we will see rates fall well below 6% in the near future.
Why Now?
With interest rates projected to keep coming down, it’s expected to create another strong buyer opportunity where those waiting over the last 2 years now jump back into the market. Coupled with historically strong spring markets, and the election behind us, we are expecting a very busy, very competitive spring market.
The data makes a strong case to purchase now, lock in your price, grab the seasonal discounts, avoid the spring rush, and when rates drop further you can refinance and lock in greater affordability.
Feel free to reach out if you have any questions about this data, the market in general, or we can help you get ahead in the real estate market.
Disclaimer and credit: This data has been pulled from Paragon using Green Light Statistics.