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.
In the mid-80’s, my favorite Uncle got a job in post production for movies in CA. They moved from WI, bought a house out there, basic Spanish-style house for $150K.
In the early 2000’s, they sold that same house, with a slightly cracked fireplace due to an earthquake for...wait for it...wait for it...$650,000.00!
They bought a travel trailer (luxury, not just a pop up) then moved with their two boys to NM where his wife’s parents had landed in retirement. Paid cash and built their Dream House and banked the rest.
Couldn’t have happened to a nicer family. :)
Definitely not a California bubble
STOP THE PRESSES! LET’S BRING BACK THE 5 CENT CANDY BAR!
When politicians particularly members of today’s in name only democrat party started pushing for a higher minimum wage. The focus should have been on purchasing power of the lowest coin of the realm. Each time it was passed the price of an item like an individual candy bar and everything else increased. What began at 5 cents in the 1940’s was when the minnimum wage was 50 cents an hour . As the rate steadily increased so did candy bar prices to what it is today. The result has always been since it began devaluing the purchasing power of the dollar.
Tried to buy several houses for around 120K in FL over the weekend. Nope. Not happening. As soon as they were on the market they had cash offers.
You’re talking since 1940, 80 years. I’m talking 80 DAYS! I’m glad you’re not concerned. Apparently you don’t buy food, energy, housing, transportation, you know the things that are increasing at 15+% a year. You take your 5 cent candy bar from 1965. I’d like my $2.25 gas or a used car that cost less than a new sticker price, you know from way back in February of 2021.
Good Lord is that what you got out of that comment?
Ever since the dems decided to promote minimum wages with the value of the dollar backed off the gold or silver standard the purchasing power of the dollar has disappeared. Today’s used cars ask for more paper dollars now than when they were sold
The minimum wage has very, very little effect upon the rampant inflation we’ve seen in the last year and particularly in the last six months. Good Lord, we were talking about today’s inflation. The government’s printing of ten trillion dollars dwarfs what a couple of cities has done regarding minimum wage in the last year. Let’s stay on point here.
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