A Quick Update to the Madison Market
This market update will prepare you to buy or sell in Madison.
What’s happening in our market? We all know that interest rates are rising, and more homes are up for sale, but it’s important to note that buyers are still serious.
While it’s true that some buyers have been priced out, sellers, real estate agents, clients, and lenders are getting much more creative in finding solutions to getting buyers into homes.
We’re seeing some new options for buyers now entering the market, including a 2-1 buydown interest rate and a 3-1-1 buydown interest rate. These new options are helping to get buyers into homes and out of renting. Homeownership remains a great long-term investment.
"Homes are still appreciating, and home values are still going up."
We aren’t seeing homes appreciate at quite the rate they were only two or three years ago. Homes are still appreciating, however, and home values are still going up.
Sellers are also getting creative by offering closing cost credits to their buyers. This lets buyers use the credit for either their closing costs or to buy down their interest rate.
Adjustable rate mortgages are again on the rise, with five- to seven-year adjustable-rate mortgages offering lower interest rates than the 30-year fixed. These are particularly attractive for buyers who only plan to stay in their home for less than seven years.
In this market, it’s very important to have a consultation so that you know your options upfront and are informed on what is best for you. Please take the time to reach out to us. If you have any questions, you can call us at any time at (608) 445-2287. We’ll be happy to help. Have a great day.