March 22, 2017
The Noelke Team
Real Estate conditions in the Greater LaCrosse area are very strong in the first quarter of 2017. There are a few forces that are pushing it in this direction. Right now we will discuss a basic economic force in the real estate market.
Supply and demand. In Economics 101, you probably learned that when demand is low and supply is high, prices drop in order to sell stagnant inventory. This happens in any business, or line of products. The opposite is true when supply is low and demand is high. That is exactly what is taking place in the LaCrosse Area right now.
All over the internet, you’re probably seeing realtors post on social media that the market is hot, move quickly, and so on. It is true, as there is large number of buyers whom are house hunting. Supply of homes on the market for sale is quite low, and as a result, some sellers - in hot markets - are receiving multiple offers the first week their property hits the market. In some cases, multiple offers are received the very first day that the listing goes public on the MLS system.
What does this mean to you as a seller? It’s a great time to list your property for sale. But, keep in mind that not every property will sell fast, just because there is an imbalance in supply and demand. If a property has a listing sale price that’s too high, it is likely that it will sit on the market, and get overlooked by many shoppers. The property becomes stagnant on the market. It’s important to decide on a selling price that matches the current conditions of surrounding properties and those similar in amenities.
An experienced agent will show you a “comparative market analysis,” i.e. similar homes either currently for sale or ones that have recently been sold, in order to set a selling price that is reasonable with the current climate.