The Summer Slow Down ~ What it means for your Real Estate

It is past June 15th, my drop-dead date for the spring market. You can feel the slow down before it begins and sellers are wondering why in their minds ...the best time of the year to sell ....the housing market has come to screeching halt.

In the first 30 days of the summer of 2017, we have seen a 30% decline in accepted offers over the month of April. That means there are about 30% fewer buyers actively on the ground in July than in April in ALL price points.  Summer is notoriously slow because Wisconsinites are playing. Buyers are not strongly pursuing houses until the fall market again, which begins right around August 15th. It is consistent, and the slow down happens year over year. Summer is not a strong market in Milwaukee. Summer is a busy time for vacationing, and Millennials and Boomers alike are very serious about their time off. Spending time with family and friends and vacationing take precedence in people's lives this time of year; not necessarily buying a home.

For Sellers: Buyers are still on the ground, but statistically, it takes longer in July than in January because there are fewer buyers actively looking and there are A LOT more homes for sale now than in January.  Tight inventory? Not so much. The number of active listings in January for Whitefish Bay and Shorewood combined was 100. As of July 1, that number is 184. Sellers need to readjust their expectations to match the summer market. Understand that your home may not sell in a day. It is important to understand the difference in price per square foot carefully from spring until now so that you gauge your pricing correctly.  You will see an inverse relationship in price per square foot and longer days on market in summer. It is just a fact for sellers in the summer market.

For those sellers not on the market but getting ready... summer is a great time to do your pre-listing inspection and fix all the items around the house that have been neglected. Loose hinges, minor wall scuffs, scratched flooring; improve it all so that you are ready to hit the market in the prime selling season which is January 1 through May 31st.

For Buyers: You should be actively pursuing your next home NOW. Late June through August is the best time of the year to buy and get the best price on a home.  There is more inventory right now than there has been all year. Multiple offers have all but faded away with the spring market and you can negotiate the best deal of the year in summer. The market picks back up in fall so there is no time to waste in looking for the best possible price now. Summer has the best prices for buyers and the most choice.

Happy Shopping. Feel free to call Powers Realty Group for a free in-home consultation or more information on Market Reports for your area.