By Jade Goodhue
Wondering what’s going on with real estate in the Geneva Lakes area and what’s to come? Let’s dive into the real estate metrics to better understand what they mean for buyers and sellers in the current market.
How’s the Market?
First, let’s look at the Months Supply of Inventory, which is currently at 4.18 in Walworth County and 4.85 in the Geneva Lakes area. This metric represents how many months it would take to sell all the current listings on the market if no new listings were added.
- Both numbers indicate we’re in a balanced market where demand has slowed to a more normal pace. Buyers and sellers have relatively equal negotiating power.
- Overall, higher months of inventory are good for buyers, as there are more options.
- This means sellers will have to realistically manage their expectations of what ‘top’ dollar means. A seller’s ability to get top dollar is all about timing. And while homes will continue to appreciate, top dollar is relative to what a buyer is willing to pay in times of scarcity versus in times of abundance. While homes aren’t necessarily abundant, they aren’t as scarce as they once were. Fear of missing out was a powerful motivator but it is no longer at play.
How Strong is Buyer Demand?
The Median Days Homes are On the Market indicates demand has slowed. In a seller’s market, the days on the market oscillated between 40-60 days. Now though you can see it oscillating between 50-70 days which supports that we are indeed in a balanced market as homes aren’t selling as quickly.
- As of last month, Days on Market was at 61.7 in Walworth County and 67.7 in the Geneva Lakes area. This will slow more as we head into the holiday and winter season.
- This is good for buyers as longer time on the market tends to soften prices.
- This is tough for sellers and they need to price their home realistically and be patient as the median time it takes to sell a home is now around 2 months give or take.
Where are Home Prices?
The most in-demand price range for buyers in Walworth County is between $ 300K-$400K; in the Geneva Lakes area, it’s between $400K-$600K.
The price range for the most amount of active listings in Walworth County is between $300K-$400K; in the Geneva Lakes area, it’s between $300K-$650K. As you can see, there are more listings for homes in the higher price range across both Walworth County and the Geneva Lakes area this year compared to that of 2023.
Tons of buyers want homes in this range, so homes are in demand. But, because it’s a hot price point, more sellers are NOW jumping in, thinking their home will sell quickly too. Some of these homes end up sitting on the market a bit longer, even in the most popular price ranges. WHY? If a home sits for more than an average timeframe it could be one or a combination of several things.
Is the Real Estate Market Softening?
While home prices overall are still appreciating, the List to Sold Price Percentage shows how close homes are selling to their original listing price. It’s at 94.1% in Walworth County and 91% in the Geneva Lakes area. Indicating homes are still selling within 10% of their asking price.
- This tells us that sellers across all price ranges will want to be brutally honest about the condition, uniqueness, and value that your home offers and to work with us to price your home accordingly.
- This is good for buyers as it validates how much negotiating power you actually have.
The Median Sold Price for Walworth County and the Geneva Lakes area are both between $400K-$450K, which gives us an idea of the average price of homes being sold. However, the Median List Price for Walworth County is about $525K and the Geneva Lakes area is $700K.
- This highlights the disparity between buyer demand and availability.
- Sellers around that price range will need to be patient and price their homes realistically.
Interest Rates
The Fed cut the Fed Fund rate by 25 basis points on the heels of the presidential. Likely they did this to help the economy adjust to changes, especially with inflation slowing and the change in presidential administration.
- By lowering rates, they make it cheaper to borrow money, which gives the economy a bit of a cushion, while encouraging people and businesses to spend and invest during this period of transition.
- This is good for the short term.
- For buyers, it means it’ll be more affordable to finance your home purchase.
- For sellers, it might loosen the lock-in effect.
- However, the low inventory may drive home prices up again.
Bottom Line
Overall, these metrics suggest a competitive market for both buyers and sellers now and in the year to come.
- Buyers will need to be prepared to act fast and make strong offers when they find well-priced and well-maintained, turnkey homes, but less so for homes that need some TLC.
- Sellers across all price ranges will benefit from pricing their homes competitively to attract buyers. Buyers who pay top dollar demand turnkey homes.
- Those with homes that need more love will need to price their home much more realistically.
Reach out to Jade:
Call: 262-261-1433
Email: Jade@LegendaryRealEstateServices.com
Book a call: Schedule a Call
