40 homes and condos expected for Middleton open house event - Sunday April 5th

There will be plenty of Middleton homes and condos to see on Sunday, April 5th.

Click here for an updated list.

Check back often, as we'll be updating this list every day leading up to the event.

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Interest rates reach new lows

Interest rates have reached new lows, according to the latest weekly mortgage survey by Freddie Mac. Rates for 30 year fixed rate mortgages averaged 4.85%. Rates for 15 year mortgages averaged 4.58%.

Here's how rates have trended over the last 20 weeks:


For the latest rates from local lenders, check out the mortgage update page under buying real estate at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

April homebuyer seminars

With lower interest rates, lower home prices and the $8,000 tax credit, it's a good time to educate yourself on the home buying process and the financial aspects of home ownership. Both the UW Credit Union and the Dane County Housing Authority cover these topics in home buyer seminars during the month of April.

The next UW Credit Union Seminar is Saturday, April 11th from 10:00 to 11:30 AM.

The next Dane County Housing Authority seminar is a two-part series with sessions on both Tuesday, April 7th and Tuesday, April 14th. The DCHA will be hosting a second two-part seminar on April 21st and April 28th. All sessions run from 6:00 to 9:00 PM. Click here for more course details and registration info.

You'll find our local homebuyer seminar page under buying real estate at DaneCountyMarket.com. Feel free to check this resource for a schedule of upcoming seminars throughout the year. Our buying real estate page also has a number of other useful resources, including information on schools and school districts, inspection and testing resources, current interest rates, and assessor resources for local communities.

Have a good one,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

What is a short sale?

A short sale occurs when the proceeds from the sale are not enough to cover the mortgage and other liens on the property. When this happens the seller is obligated to cover the difference, unless he's able to negotiate a deal with the lender. Quite often this means the lender ends up taking a loss on the sale.

A short sale purchase usually requires more time and patience on the buyer's part. Once an offer is accepted by the seller, it then needs to be approved by the lender. This means the buyer may need to wait as long as 30 to 60 days before he knows whether or not the lender will approve the offer.

Your buyer agent can help you successfully navigate the short sale process. For example, your buyer agent can help you structure your offer so you don't need to submit your earnest money, conduct your inspection, or obtain your loan commitment until the seller's lender has signed off on the offer. That way you'll be protected against any unnecessary outlays should your offer not go through.

Your buyer agent can also help you research the seller's mortgage, property taxes owed, and any other liens prior to your offer. Then you'll be able to estimate the dollar amount that the lender will be on the hook for if the lender approves your offer. That's very good information to have as you prepare to negotiate.

For more information on how you can research properties, check out the buying real estate page at DaneCountyMarket.com.

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Alternatives to traditional financing

In our last post we covered how home and condo sales are at their lowest levels since 1991. One of the reasons is lending standards have tightened considerably. Generally speaking, loans these days require higher credit scores and more money down than the loans from a few years ago.

With tighter lending standards and fewer sales, some sellers are promoting options such as seller financing and rent to own financing as ways to attract more buyers. In fact if you take a look at this Sunday's real estate section, you'll see some advertisements that promote seller-assisted financing.

Creative financing can benefit both seller and buyer. The seller receives a monthly payment for a property that might otherwise go unsold. And the buyer gets his home at a rate and terms that would be hard or impossible to match through traditional financing.

How do you find sellers that offer creative financing? Some sellers are advertising creative financing right now. Others will be open to it - but you won't know until you ask. Some sellers will be open to discussions once you broach the topic.

Have a good one,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Putting Dane County sales in perspective

Do you have your listing priced right? Before you answer this question take a look at this picture. It shows Dane County home and condo sales during the months of January and February for every year dating back to 1991.

The 352 homes and condos sold over the past two months was the lowest January through February total since 1991 - when there were 338 sales. Sales through February of this year were lower by 32% from the same time period last year. Sales in January and February of 2008 fell by 25%.

We've learned over the last two months that the economy and news of the economy are having a much bigger impact on sales trends than news of lower interest rates. So if you need to sell, now is the time to evaluate everything about your plan, including your price. Buyers are coming out of the woodwork this Spring but in much lower numbers than previous years. Meanwhile more new listings are entering the market every day.

Are you treating your sale as a competition? And are you willing to do what it takes to get your home sold?

For marketing and pricing tips, visit the selling real estate page at DaneCountyMarket.com.

Have a good weekend,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Mortgage rates plunge below 5%

Mortgage rates have plunged again. You can check out the latest rates for local credit unions and banks on the buying real estate page at DaneCountyMarket.com.

Have a good night,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Why is pricing so important?

Because of statistics like these:

Dane County condo sales were lower by 39% in February and 40% year-to-date.



Dane County home sales were lower by 25% in February and 29% year-to-date.

If you need to sell, now is the time to get your pricing right. Don't misinterpret median price statistics. The median price measures how much buyers are spending when they make their purchase; it doesn't measure how home values are changing over time. In many locations buyers this year are getting much more home for their money than buyers from last year.

If you're tracking our market, the sales volume stats are the most important ones to watch. When home and condo demand starts trending significantly higher, then sellers will begin to gain some leverage. Until that time buyers will have the upper hand (with some exceptions).

You'll find our preliminary report on the month of February at DaneCountyMarket.com.

Have a good one,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Middleton open house event is Sunday, April 5th

Our west side open house event on February 8th was a big success. Over 70 listings participated. Two homes had over 30 parties attend. Two others were sold to people who attended the open.

The next open house event will be Sunday, April 5th - covering all of Middleton. We're inviting 150 agents with home and condo listings to participate, so it should be a great time for anyone with an interest in Middleton real estate to get out and check out the inventory on this year's market. More info will be coming soon.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosures up over 25% in February

Dane County foreclosures increased from 89 in February of 2008 to 112 last month - an increase of 25.8%.

Here's how foreclosures have stacked up over each of the last 6 Februarys:

• February 2004: 31
• February 2005: 27
• February 2006: 62
• February 2007: 67
• February 2008: 89
• February 2009: 112

We've covered how foreclosures have overtaken new construction as a source of housing inventory. Foreclosures continue to increase while housing starts are on the decline. We'll take a closer look at housing starts soon.

For our full February foreclosure report, you can visit the economic trends page at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Dane County foreclosures mapped - updated for 2008

This map shows Dane County foreclosures by location for 2007 and 2008. Look for the areas shaded in dark green. These are the census tracts where foreclosure density - measured by the number of foreclosures per 100 housing units - is highest.

A couple of patterns jump out from this map:

• Foreclosure density tends to be highest in areas along the perimeter of Madison and outside of Madison. The census tracts along the northern part of the county have the highest foreclosure rates - as do portions of the far east side.
• On the other hand foreclosure densities along the Isthmus and Madison's west side are well below the county average.

Thanks to Russ Kashian from UW Whitewater and Matt Kures from the UW Extension Center for Community and Economic Development published this map.

On a related note, Dane County foreclosures continued to rise in February. We'll publish our February report in the next couple of days. In the meantime you'll find our January foreclosure report on the economic trends page at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

Local unemployment rates versus the state and the nation - January 2009

Each month the Wisconsin Department of Workforce Development reports on local, state and national unemployment rates. The latest report for the month of January shows unemployment has been rising throughout the country, but Madison and Dane County continue to experience much lower rates of unemployment than the state and the nation as a whole.

The global and national economic trends are having a big impact on our local economy, but we're fortunate to live where we do. Our relatively low levels of unemployment should lend some stabilization to our local housing market while many other parts of the country undergo more drastic changes to their local economies.

You'll find our full unemployment report on the economic trends page at DaneCountyMarket.com.

Have a good day,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

The scoop on the new $8,000 first-time homebuyer tax credit

The new $8,000 first-time homebuyer tax credit offers a much bigger carrot than the previous $7,500 credit. Unlike the previous credit, the new tax credit does not require repayment. The new credit applies to homes purchased between January 1st and November 30th, 2009. This FAQ document from the Wisconsin Realtors Association does a nice job explaining the terms and eligibility requirements of the new credit.

Have a good weekend,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com

A ton of incentives - and signs of lower prices

A ton of buyer incentives are being offered by sellers these days. And many are advertising lower prices. Here are some examples from yesterday's real estate section in the Wisconsin State Journal:

• One builder is offering to match the $8,000 first-time homebuyer tax credit - for a total credit of $16,000.
• One condo development is advertising "new prices, new condos", while another condo ad says "check out our new pricing".
• Others developments are offering various incentives such as $20,000 in allowances, a free lifetime health club membership, the assumption of your lease, and the purchase of your home.

I have two quick questions for you if you've been thinking of buying:

Do these incentives make you want to buy? Or are you more inclined to wait?

Have a good one,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com