We are currently in Q1 of 2019 and still have a very favorable real estate market update here in the St. Croix Valley! I often hear that winter isn’t the best time to list, but on the contrary, it can give a seller an advantage in the market with less competition. We also see many corporate transfers happening during these months which bring new buyers into the market.
Here are my top 3 market updates to keep in mind as a seller or buyer right now:
It had been projected that the Fed was going to raise rates slowly throughout the year to try and curb inflation. Now, because we’re seeing a lot of disruption in the market and consumer confidence has gone down a little bit because of not being sure if they want to make a change or not, they have decided to stay put with rates. They might rise later in the year, but for now, rates are still very low.
We still have the tale of two markets right now. There’s the entry-level market that is still in high demand. It might not be moving as fast as it did last year, but last year was an insane year which brought many buyers struggles when trying to find a home and put in an offer in time. What we’re seeing this year is that there should be a nicer flow without it being as hectic and stressful for anything under $400,000.
Once we move into the upper-bracket market, we’re seeing a bit of a softening here. What that means to sellers is that you have to be really spot on with your pricing and you have to stay current with what’s going on with the other inventory because those are the homes that the appraiser is going to use to give your home value. You also want to see the other inventory as your competition and you want to move yourself up in that line.
We have a lot of new construction happening around us and part of it is the fact that Lake Elmo opened up so many new developments with new water and sewer along with the addition of the bridge between Minnesota and Wisconsin. This has created a gateway for a ton of new construction in Wisconsin, as well.
What I hope that sellers understand is that new construction is not going away. Also, if you buy a new home with the intention of selling it down the road, you will still be competing with new construction and new buyers at that time.
If you’re thinking about making a change in 2019, reach out to us and we would love to help you make sure you’re making smart real estate decisions.