Let’s take a look at the second quarter re-cap for the Brown County residential Real Estate market. We are in a holding pattern, as the market is somewhat shifting. Overall, the market has softened just a little bit for three main reasons: Lack of affordability, interest rates and continued lack of inventory.
Total Sales and Home Prices are Up
Looking at the numbers, the total sales are almost identical to last year at this time:
- 2023: We had 1,216 sales year-to-date.
- 2024: We have 1,227 sales year-to-date.
This shows that the total market is up just 1%.
It’s interesting to compare the total sales to 2019, which was pre-pandemic and considered by many to be the last “normal” year in Real Estate. That year, we saw 1,601 total sales in Brown County, which means we’re down 30% in 2024. Across the country, we’re experiencing the lowest “total sales” number since the late 1970s.
Breaking it down by house price in Q2 2024, compared to Q2 2023:
- Sales $300,000 and under are down 7%.
- Sales $300,000 to $500,000 are up 2%.
- Sales $500,000 to $1,000,000 are up 25%.
- Sales over $1,000,000 are up 8%.
Home Prices Continue to Rise
Brown County median home sales prices are up 7% compared to last year:
- 2023: Median home price was $295,550.
- 2024: Median home price is $315,000.
But, it’s even more significant compared to 2019, when the median sales price was $200,000. That is a 63% increase from 2019 to 2024. A “typical” property increase for our area is 3% to 5% a year.
Additionally, the market is currently selling 1.06% above the list price. We are still seeing multiple offers in very high-demand areas and price categories. This is happening MUCH less often, but it is still occurring.
Available Inventory is Up
The amount of available inventory has grown 16% over last year, which has been a very welcome change:
- 2023: 454 available homes.
- 2024: 535 available homes.
Still, we’re down from pre-pandemic levels. In 2019, we had 733 available homes, which means we’re down 30% from that year. Although we are gaining some inventory, we are still severely down. We currently have a 2.4-month supply of inventory, while a balanced market has a 6-month supply.
Median days on the market:
- 2023: 37 days.
- 2024: 36 days.
Effect of Interest Rates
Overall, the higher interest rates are definitely having an effect. As the rates go down – they are currently in the low 6% range – we will likely see the return of pent-up demand, which means we’re most likely going to experience the return of multiple offers more frequently.
If the interest rates dip into the high 5% range, all bets are off on what happens. If they stay in the 6% range, I feel the market will stay where it’s at, which is steady but softer than what we are used to.
What Will Q3 Look Like?
I feel the market is in a holding pattern. The interest rates will be the determining factor in the direction the market takes in the third quarter. While it is still a seller’s market, that’s beginning to change, which is showing up in fewer offers on listings.
If you’re looking to sell: It’s really critical to have your pricing correct and be working with an Agent who is up to the moment on market conditions. You must enter the market ready to sell in the appropriate condition. Sellers are going to see more competition. Many people feel their homes are worth much more than they actually are at the moment. I am definitely seeing this as are other Agents.
If you’re looking to buy: You need to work with a highly skilled agent in this market. I can see the differences in the offers that I see, as a listing agent. People who aren’t working with an agent (or aren’t working with a good agent) are writing very non-competitive and sloppy offers. In a competitive environment (which it still is) it is critical to have your facts straight and your best foot forward. Winners win. Choose wisely!
As always, we are here to help you make intelligent and informed Real Estate decisions for you and your family. Please reach out with any questions!
