Posted on 06/23/2021 2:22:29 PM PDT by Diana in Wisconsin
MADISON, WI — The American Dream feels more and more like just that– something people can only dream about.
According to the Realtors Association of South Central Wisconsin, the average price of a home in Dane County right now is $345,000. Those who work in the housing market industry don’t expect prices to go down anytime soon.
John Thompson, President of Thompson Kane & Company, Inc., said on every home that goes up for sale, “We see multiple offers. Twenty, thirty offers per house.”
Thompson said one of the most extreme measures he’s seen a home buyer take recently was a case in Deforest where people paid close to $400,000 over the asking price without ever entering the home.
“I’ve never seen anything like it,” Thompson said. “I don’t think anybody alive today really has either.”
President of Stark Company Realtors David Stark said, “People are resorting to a lot of interesting techniques to be the winner in a bidding war.”
Stark said home buyers typically pay anywhere from 3-10% down but now, people are putting down 20-30% upfront.
“I’ve seen crazy markets. I’ve never seen this version of crazy before,” Stark said.
People are also offering up to 30% more than the high prices already listed on homes, all contributing to the fact that there’s so much demand chasing such little supply.
“The housing shortage goes all the way back to the recession of 15 years ago,” Stark said. “We were underbuilt and we’ve never been able to catch up.”
Stark and Thompson said they don’t see prices falling anytime soon. But they are focused on partnering with organizations to make homes more affordable by increasing that supply over time, which, in turn, will slow the rapid increase in home prices overall.
Until that happens, Stark suggests that first-time homebuyers sit down with a good realtor, set boundaries and live within them.”
“If a buyer wants to come in with a lower down payment, they can certainly do that,” he said. “They have to find the right lender and get a good preapproval so the seller knows they are going to have a closing.”
Stark said millennials are the biggest group of home buyers ever which is why we are seeing such high demand for homes right now. He added that the pandemic escalated the market prices. Home buyers can expect their mortgage payment to be between $1,500- $2,000 per month.
...people paid close to $400,000 over the asking price without ever entering the home
—
This is insane. The very definition of a bubble.
““I’ve seen crazy markets. I’ve never seen this version of crazy before,” Stark said.
People are also offering up to 30% more than the high prices already listed on homes, all contributing to the fact that there’s so much demand chasing such little supply. “
yeah, it’s what happens when trillions of “free” money are dumped into the economy ... totally “unexpected” ... NOT ...
These stories are lagging the reality. My feeling is that some properties in the area in which I’m looking ae starting to spend actual time on market. Prices will take months to follow. 6-12 is just a SWAG.
Who are these "people"?
Chinese nationals, probably. And the Chinese government probably bought the house, too. Expensive new cars in the driveway too, probably.
Tough competing with companies that have billions of dollars.
What do they know?
How will they get a RIO?
Will it make my hunk of woods in rural MO worth any more?
Stepson and his wife live in Oregon, WI. They are building a new home in Waukesha County and are getting the hell out of Dane County.
I’ve been called by the realtor who found and set our move up from CA to WI several time in the past 2 years. We can “ sell your home in as little as a day” for over 15% of your homes value. 200k to 350k in 16 years These people are nuts. But we are thinking about cashing out and moving up north where normal folks are and homes are not through the roof.
5 years ago here in N.E. Fla. a neighbor sold their home for $275k.....the people that bought it then, sold it last month (in less than a week) for $42k over asking price.
Total sale price $466k.
Sheesh.
It’s everything, buy a home, rent a home, build a home, cars (new and used), anything that has steel, wood, aluminum, a chip in it, Kroger, a cheeseburger at McDonalds, gas, Wall Street, ammunition, bicycles, friggin’ everything. Using 1978 criteria, we are probably running 15% inflation. Inflation really took off in consumer goods with all of Joe’s gubmint script. People spending hand over fist while the money’s still worth something. In 2021 dollars is that dollar cheeseburger now worth $1.69? Is that $2 gas now worth $3.25? Is that 25,000 Dow really worth 35 or 40,000? Never let a crisis go to waste. When hyperinflation hits and it takes all your 401k earnings from last year to buy this weeks groceries, it’ll be the perfect time for marshal law.
Your stepson and wife are making a good choice. We can use more conservatives in Waukesha county to keep it red!
If you stay out of the counties where there is a University of Wisconsin campus, the rest of the state is pretty sane.
great dane...
Just tell antifa those houses are being populated by nazis
Democrat shithole.
A cousin (like a brother) moved from Oregon to Menasha..couldn’t be happier!
“Will it make my hunk of woods in rural MO worth any more?”
I sure hope so! We just had a HUGE land sale, locally. It’s all staying Ag-Zoned but the pieces that went for top dollar got $8K an acre!
We have NEVER heard of that type of money in this area, either.
Beau is head of the Land Use Committee, so rest assured no sales went to Chinese Nationals or anyone other than local farm folk. ;)
Our nearest neighbor bought 8 acres for $40K, so $5K an acre - and that’s just pasture land that still needs to be mowed and stumped out! (I know you’re familiar with that process, LOL!)
Unreal. We are ONE county over from Dane County - from which I fled and vow NEVER to return!
“Buy LAND, Son. They’re not making any more of that!” ;)
Good for them! I had a Hobby Farm in Oregon. Sold it for a decent profit and also GTHO of Dane County in 2016.
See my Post #17 about my current digs. ;)
“If you stay out of the counties where there is a University of Wisconsin campus, the rest of the state is pretty sane.”
Well said! Exactly! ;)
Milwaukee and the university towns can be crazy, too.
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