Real estate sales in the Door-Kewaunee County market areas for October continued with a strong trend toward fewer sales but much higher prices. This is the typical scenario in all types of commodity markets. “The higher the price, the fewer the sales!”
In this market, we are seeing this old economic adage playing out at a level probably never seen before, at least not since my entrance in the real estate business in 1969.
This is exemplified by an examination of median price over the last 7 years. Median price in this context is garnered from the Multiple Listing Service (MLS) and summarizes sales of all type properties, from homes to businesses to vacant land to condominiums, etc. All numbers are measured from January 1 through October 31. Median price for real estate properties sold in Door and Kewaunee Counties back in 2017 was $156,850. Here in 2023, 7 years later, median price exploded to $300,500. That’s a jump of 92%!
How ‘bout just homes prices, you ask? Here in 2023, residential inland homes carried a median price of $355,000. Back 7 years the number was $165,000. That calculates out to a rousing 115% increase! Again, this is for a January-October time frame.
Now let’s take a look at the supply side of the picture. Back 7 years to 2017 there were 401 homes sold. This year just 249 homes sold. That equates to 61% fewer homes sold.
Another measure we in the real estate business consider is days on market (DOM), or time from listing to closing. Seven years ago, DOM was 225, now it’s just 85 days. A big part of this difference is CASH! There is so much competition for desirable homes, buyers are aware they must make their offer as attractive to sellers as possible. And cash, not a financing contingency, is king.
At ERA Starr Realty, we will break down the steps a buyer and seller need to take to complete a successful home purchase. We are “ALWAYS THERE FOR YOU!”
