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Liz Tobolt
#1 Sales Associate Lake Country Office 2016, Senior Executive Associate
Mobile: (414) 881-0738, Direct: (262) 337-9211
ltobolt@firstweber.com
2750A Golf Rd, Delafield, WI 53018
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Happy Holidays!
Whether you are celebrating the holidays at home or away, I would like to extend my very best wishes for a happy and joy-filled season. As always, I'll be at your service with expert advice and information whenever you have a real estate need.
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WISCONSIN’S REAL ESTATE OUTLOOK
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PLEASE NOTE: Market conditions can change rapidly across the state. Contact Liz Tobolt for the latest updates.
Home Sales and Price Trends Continue into the Fourth Quarter
SALES
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October existing home sales fell 2.2 percent compared to last October, and the median selling price rose 5.1 percent to $182,500. Through the first 10 months of the year, home sales also fell 2.2 percent compared to that same period last year, and median prices were up 6.4 percent to $184,000.
Home prices do follow the same general pattern as sales, ramping up in the spring and summer, then falling to relatively lower levels during the winter months. Sales last winter were fairly strong, suggesting a lot of buyers took advantage of price opportunities during that time of the year.
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INVENTORY
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Inventories remain very tight statewide, and it's still a strong seller's market in most regions of the state. The only area in the state that is considered a buyer's market is the North region.
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AFFORDABILITY
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The strong economy has kept affordability from dropping further. Median family income in the state is estimated to have increased just over 5 percent since October of last year. The flip side to a strong national economy is that the Fed will likely continue to hike interest rates translating into higher mortgage rates over the next year.
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BUYERS: Buyers who have been unsuccessful during the summer may want to consider the winter home markets. Sellers this time of year are frequently very motivated.
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Jean Stefaniak
WRA Board Chairman
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SELLERS: Rising prices and rising mortgage rates will continue to put pressure on affordability. Selling this winter could turn out to be a good decision in the long run.
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Michael Theo
WRA President & CEO
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Source: Wisconsin REALTORS Association, October 2018 Home Sales Report, November 19, 2018
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SHOULD YOU SELL NOW, OR WAIT UNTIL SPRING?
A Winter Sale Could be the Best Answer for You for Many Reasons.
Selling During The Winter Months Is Often Less Stressful For All Parties Involved
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Buyers Can Enjoy Long-Term Savings While Mortgage Rates Are Still Relatively Low
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REASONS TO SELL NOW:
- Less Competition: the fewer number of comparable homes on the market, the greater the probability that a buyer will look at your home.
- Serious buyers continue to look at homes no matter what time of year it is.
- With the still low mortgage rates, buyers are able to afford more home for their money.
- If mortgage rates rise in the spring, it could cost sellers thousands of dollars.
- There are fewer real estate transactions in the winter months which leads to quicker transactions and closings for all parties involved.
Source: RISMedia's Housecall, Should I Sell My Home Now or Wait Until the Spring? by Kyle Hiscock, September 25, 2018
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BUYERS: WHAT YOU SHOULDN'T DO IF IT'S A TIGHT SELLER'S MARKET
When you find the house you want, making a bid quickly can be the difference between buying it and missing out.
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Not Getting Pre-Approved for a Loan
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Stalling on an Offer or Making an Offer Below Asking Price
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Seeking too Many Contingencies
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Sources: RISMedia, 7 Benefits of a Federal Reserve Interest Rate Hike, by Mark Hamrick, and ©2018 Bankrate.com Distributed by Tribune Content Agency, LLC, September 19, 2018. RISMedia, rismedia.com, 4 Things You Shouldn't Do in A Seller's Market.
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HOUSING MARKET ON NORMALIZING TRACK
SIGNS OF STABILIZING
The most recent signs of stabilizing include:
- The recent cool-off in home prices and rents.
- Annual appreciation nationwide slowed this Fall.
- There was a 1.9 percent deficit in inventory year-over-year which was the smallest since 2015.
"With slowing rents and home value growth, searching for a new home should be somewhat less competitive than it was a year ago, giving renters and buyers a bit of breathing room," says Aaron Terrazas, senior economist at Zillow.
READ MORE
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Source: RISMedia, Housing on Normalizing Track: Zillow, by Suzanne De Vita, October 20, 2018
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APPRECIATION DIPS BELOW 6 PERCENT
FOR FIRST TIME IN A YEAR
Annual appreciation has ducked under 6 percent for the first time in a year, according to the latest S&P CoreLogic/Case-Shiller Indices. As of September, there have been six consecutive months of downhill existing-home sales, and new-home sales are also sliding.
"Following reports that home sales are flat to down, price gains are beginning to moderate," says David M. Blitzer, chairman and managing director of the Index Committee at S&P Dow Jones Indices. The seasonally adjusted monthly data shows that 10 cities experienced declining prices. "Other housing data tell a similar story: Prices and sales of new, single-family homes are weakening, housing starts are mixed and residential fixed investment is down in the last three quarters," Blitzer says. "Rising prices may be pricing some potential homebuyers out of the market, especially when combined with mortgage rates approaching 5 percent for 30-year fixed rate loans."
READ MORE
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Source: RISMedia eNews, Daily Regional and U.S. Real Estate Industry News, Case-Shiller: Appreciation Dips Below 6 Percent for First Time in a Year, by Suzanne De Vita, October 31, 2018
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GRANNY PODS: Caring for Aging Relatives in Your Own Backyard
12 x 24-Foot Pre-Fabricated Mobile Home Pods that Sit Conveniently in One's Backyard
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Photos Credit: facebook.com/MEDCottage
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MedCottages encapsulate all the functions of a proper nursing home while providing freedom and privacy.
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For homeowners who are responsible for their own families and their aging parents, what to do with grandma and grandpa can be a stressful question to answer. While nursing homes may feel wrong or unnecessary, and having the elderly family member move into your family's home may have its own inherent difficulties, the Granny Pod provides a nice middle ground option.
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Granny Pods, aka MedCottages are structures that hook up to existing plumbing and electrical systems and allow both the caregiver and senior citizen to have their own space while still being available and connected. The pods are quickly growing in popularity and are a win-win for both parties: the aging family member has his or her own space, while the caregiver doesn't have far to travel to be of assistance.
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These mobile homes are built with safety in mind and include many of the basic amenities any adult would need. They include a small kitchen, a bedroom and a bathroom all designed in a small scale space with easy access in mind. The bathrooms are handicap accessible with safety features and the floors are padded. They are tech-savvy, too!
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If you are interested in a MedCottage, be sure to check your local community zoning restrictions first.
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Source: RISMedia's Housecall, Granny Pods: Caring for Aging Relatives in Your Own Backyard, by Nick Caruso, August 16, 2018
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