Three types of homes that are selling and three that aren’t.
Our market shift is real and happening right now. So today I want to discuss the three types of properties in our market that are still selling well and three that aren’t.
The first kind of home that’s still selling well is three- or four-bedroom, two-bath, single-family homes in above-average locations. The second one is condos that have at least two bedrooms. So whether they are more in the city center of Madison or out in the suburban areas, condos with two bedrooms or more are still selling well. The third type of property that are still selling well are entry-level homes in above-average locations. They sell even better when they’ve been remodeled or have had a refresh or update made to them.
Many entry-level buyers don’t necessarily have the funds to do updates to the home. If you have that type of home and can put those updates into it, those types of properties are going to do really well.
If those homes are selling well, which ones aren’t? The first category is entry-level homes in below-average locations, especially if they need a lot of work. The second type that are struggling are average homes in average locations. There isn’t anything wrong with these homes, but higher interest rates make them less affordable for many buyers. That being said, the market for these types of houses fluctuates a lot. No other type is as sensitive to interest rate increases, so condition is crucial for these properties.
Finally, overpriced homes are really struggling. Even a price 1% above market value can seriously reduce a home’s marketability. It’s very important that you get your pricing right from the get-go and you’re not chasing the market, or you’ll struggle selling your home. The bottom line is that there is no longer a one-size-fits-all way to navigate this market, regardless of whether you’re a buyer or a seller. This market is a skills-based market, and who you work with matters more than ever.
If you have questions about today’s topic, please call or email me. I am always willing to help!