January is Our Spring

I grew up in north-central Wisconsin where winter lingers longer and spring lasts until the week after the 4th of July. In Dane County the real estate market springs into action on the first business day after New Years. People who want to sell in the spring will set their plans in motion starting Monday January 4th. Home buyers will get to the bank for loan pre-approval as soon as the Christmas gift boxes are broken down and put out to be recycled.

My advice for home owners who want to move in the first or second quarter is to get your home in tip top shape in January--put in the new floor, remove wall paper, select paint with a professional stager, and get the house pre-inspected. Defects you discover can be repaired for 1/3 or better of the cost a buyer will extract from you to stay in the contract.

House shoppers, my opinion has not changed. Find the neighborhood you want and look for the best location in that neighborhood, and a house that fits your budget and life. You won't necessarily get the "best deal" but in the long run you will likely be more happy with a home that works for all of your lifestyle. Eventually you'll be selling and the return from a premier location in any neighborhood is more money and an easier time selling.

Even though the temperature outside says winter, the interest in buying and selling homes is heating up. Expect interest rates to remain low with some upward movement through May, and home prices to remain unchanged. Sales in upper price ranges lagged over the last 3 months and those limited sales will be the price setters for the first quarter. As long as appraisals are part of the financing equation, we will not see upward spikes in values.