As the American economy looks to rebound from the pandemic, many competing factors have turned up the heat on a limited real estate market.
"It is very hot," Mark Olejniczak, broker-owner of Mark D. Olejniczak Realty, Inc. in Green Bay said. He noted that many properties are selling in less than three days on the market after fielding multiple offers.
Listings below $400,000 are selling especially quickly in Northeast Wisconsin, according to Olejniczak.
"It appears the lower that we go in price, the more demand there are and qualified buyers," he said. "So under the $200,000 figure, they sell rapidly. Very quickly, as they do in the two hundred to three hundred. Three to four hundred may be a little bit slower, as far as $300,000-$400,000. When we go over half a million and especially over $750,000, it's most in balance."
Olejniczak says these trends are particularly shaped by the record-low interest rates that dipped to 3% in July as coronavirus spread throughout the United States.
"It's a heck of a deal," he said. "It keeps your monthly payment lower because your monthly payment is comprised of principal, interest, taxes and insurance. Well, we know what taxes and insurance are but when principal and interest are fixed at 3.1 for instance, the monthly payment goes down considerably. So people that had entertained the idea of buying want to lock in to these low interest rates because it's a great investment."
With low interest rates and a limited supply of properties on the market, how can prospective buyers be prepared for such a fast-moving process? Olejniczak advises them to shorten their timeline and have all paperwork together at the start.
"It's not like back during the recession where they could negotiate it, look at a house on Tuesday, come back on Friday and make a decision on Monday," he said. "Now they have to have a loan pre-approval letter from their lender, pre-qualification letter, and if it's a cash deal, have a wire of cash funds; have their realtor get them in the house that day, then make a reasonably fast decision. They might be in there for 30 minutes and deciding that they're going to buy the house, write the offer to purchase, get it in and ask for a fast response from the seller."
Additionally, Olejniczak advises offering your best possible price within budget to compete with other buyers.
