Housing sales in Madison increased 13 percent in 2015, according to a Stark Company Realtors report: There were 7,935 residential sales in 2015, the highest number in 10 years.
Mortgage rates and housing prices in the Madison area are predicted to continue to increase in 2016 due to higher demand for real estate and the lack of inventory available.
The Dane County 12-month median price rose five percent in 2015, and according to the report, the increases are expected to be similar in 2016.
On average, houses under $300,000 have sold within 16 days of listing, compared with the average 41 days from last January, according to the South Central Wisconsin Multiple Listing Service. Realtors reported fewer houses up for sale this winter than in past years, and there is a huge demand from buyers.
“If you’re buying or selling in a neighborhood with lots of sales and no inventory, expect a very competitive market in 2016. Both buyers and sellers will need to be on their toes and ready to make commitments,” the report said.
The Stark Company Realtors report also noted that potential increases in interest rates by the Federal Reserve Open Market Committee could be a factor in the housing market. However, the report said that the growing housing market would be able to withstand any increases.
“Gradual rate increases by the Fed, if they continue, should be easily absorbed,” the report said. “That makes 2016 a great year to buy before rates do in fact go up.”
Overall, 2016 is shaping up to be a strong year for sellers in the housing market.
“Future increases in housing prices will depend on supply and demand over the coming year, but with inventories this lean, it’s a good bet that prices will continue to rise,” according to the Stark Company Realtors report.