Seller’s Remorse | Milwaukee Real Estate
Seller’s Remorse | Milwaukee Real Estate
You would think in the world of multiple offers and unbelievable sale prices that being remorseful about your home sale would never happen. However, after experiencing so many of my clients regretting the sale of their home this year, I decided to dig into this phenomenon and discovered it's not uncommon for sellers to experience regret after selling their home.
A study by the National Association of Realtors revealed that nearly one-third of sellers regretted their decision to sell! Even after making large gains on their family home, sellers can sometimes feel like they made the wrong decision due to their sentimental attachment or more often anxiety around finding a place to move. Whether it is an apartment, another home, or condo, sellers may need to be more informed about the lack of existing home inventory, the cost of remodeling and renovation, and their true ability to get what they really want after their sale and before they list their home.
Many sellers are selling their fixed 2.8% interest rate for a now 5.6% interest rate with a home that may not be in as good of condition. It is great to sell high if you have a place to go and a well thought out plan. It is entirely another if you have not done the research, planning, and strategy behind your home sale. A disproportionate number of sellers are living with deep regret because they miscalculated the cost of their next move and the available inventory before they listed their home.
When you are ready and have a well thought out plan to sell, you will be delighted to know that 2022 is shaping up to be the strongest recorded selling market in Milwaukee’s history. We have little to no inventory at all price points in the North Shore, Ozaukee County and all communities west. Prices for homes have skyrocketed in the first quarter of 2022 as the scarcity of homes has increased and demand is outstripping supply.
The average North Shore home is selling at 104% sale to list price. We are seeing the price per square foot in the North Shore and downtown condo market approaching $500 a square foot. Days on market are in the single digits and I am forecasting similar market results to continue even with the rise in rates.
Mequon and Ozaukee County are experiencing the same conditions with soaring prices and low inventory. For luxury homes over $700,000 the price per square foot is now average $260 or greater and a 104% sale to list price ratio with an average of less than 24 days on market. This is a new record for Mequon. Historically 2022 will be Mequon’s best residential real estate market on record. Ozaukee County in general is breaking records in every community. Port Washington condos are sold out before they are built, and we are reaching new historical high prices in every community we serve.
As a leader in Milwaukee Residential Real Estate, I have a responsibility to inform all my sellers of impending trends and changes. Sometimes those changes are very good and exciting, like now, and sometimes they are a preparation of things to come. I want everyone to be informed. I am letting you know my observations this morning so you can make good choices in your real estate. We are expecting interest rates to reach 6% by the end of 2022 which will have an impact on some buyers. The market is very fluid and uncertain. Supply chain issues, low inventory, worker shortages, and the rising cost of housing starts and goods continues to impact our housing here in Milwaukee. Prices have adjusted upwards in the last 4 months, and we are up 17% over last year. Unbelievable records! I have no idea how long this will last. Inflation is impacting buyer’s monthly cost of living, which should mean an impact in housing but something important to keep in mind is the inventory shortage. Housing supply has fallen dramatically since the pandemic. Inventory has more than halved from 1 million active listings in January 2020 to a little over 400,000 in January 2022, according to data from the Federal Reserve. We have years of housing shortages.
Powers Realty Group is a distinctive boutique real estate broker focused on the needs of customers delivering exceptional results. We are the trusted local experts. Call us today about buying or selling your home.Call Suzanne Powers