With a few months left until the weather breaks and we start seeing signs of plant life, you may be weighing your options with the current real estate market. If you’re on the fence about selling your home this year, arm yourself with knowledge of the challenges Wisconsin sellers will face in 2020.
1. Winter Sales
Unsurprisingly, winter is the worst time of year to sell a home in Wisconsin, with January and February being the worst months. It’s not impossible to sell in the winter, in fact, if you opt to sell you might luck out by having less competition. However, if you have time before you need or want to sell, hold off until the weather warms up and the roads clear. The cold months aren’t a complete write-off, though, because they’re perfect for tackling winter home improvement projects to prepare for listing in the spring or summer.
2. Market Shift
As we head past the winter months and deeper into the year, sellers can expect the market to soften and gradually balance out. HomeLight, a real estate referral company, conducted a survey of more than 500 agents across the country to get their insights and predictions for the coming year. In that survey, 43.5 percent of agents predicted that their local markets would neutralize and balance out, while 41 percent of agents predicted it would remain a seller’s market.
3. Pricing Remaining Static
If you were planning on making a mint off of the sale of your home in 2020 you may be disappointed. More than half of agents predict that home prices will stay level, without any significant increases in the coming year. This is not necessarily bad news, as you can benefit from the predictability of the market, but if you were waiting for an increase, you’ll need to wait a few more years to sell.
4. A Decline In Bidding Wars
Those of you paying attention to the market in the last few years will likely have heard about bidding wars taking place in markets with low inventory. With 44 percent of agents expecting inventory in their markets to stay level, and 45 percent predicting a rise in inventory, sellers hoping to experience a bidding war with their own home will likely be disappointed. Again, however, the plus side of the market in 2020 is that there are no major shifts anticipated, thus sellers can take comfort in the predictability of the selling climate.
As in 2019, the biggest challenge sellers will face in 2020 will be overpricing. With an increase of millennial buyers entering the market, sellers need to take a thoughtful approach to price. Even in a competitive market, sellers need to pay close attention to their market and price accordingly, as millennial homebuyers are discriminate and not inclined to overpay to get into a home.
While Wisconsin sellers will face some challenges selling in 2020 — especially those planning for a winter sale — the reality is that 2020 looks to be a good year to sell. If you have the option of selling this year or two years from now, it would be wise to list your home in 2020 and take advantage of a predictable market.