Madison WI Real Estate News

In Business: Madison magazine has a great section called "The Business Report."  It's a bunch of bullet points with various economical and business notes - mostly locally related.  Here are the best real estate related notes from the November magazine issue:

• The Wisconsin Housing and Economic Development Authority (WHEDA) will soon be able to make mortgage loans again to low and middle income homebuyers, thanks to a US Treasury announcement of a new bond purchase program.  More than a year ago, WHEDA suspended its practice of lending to potential homebuyers when the bond markets froze.
• Nationwide, construction spending increased 0.8% in August, compared to July, though the August figure of $941.9 billion was 11.6% lower than August of 2008.  Single-family home construction rose by 4.5%, but multifamily construction dropped by the same amount.  On the flip side, current estimates show over one million construction workers remain out of work. 
• Apex Enterprises, one of Madison's largest owners and managers of rental properties, is proposing a $30 to $50 million retail and housing development on East Mifflin St in downtown Madison that could affect homes in its path, including one built in 1903 by famed architect Frank Lloyd Wright.  The developer has offered several options for the tract of land, including building around or moving the Wright property, but is facing opposition from neighborhood and historical preservation groups.  Apex is working with local plan-design firm, Iconica, on the proposals, which include a 12-14 story tower with lower-level retail and between 110-120 condominiums that could first be rented as apartments.  Apex already has a $100 million mixed-use and hotel project proposed for the Lake Monona-Monona Terrace area.
• Preliminary site plans for a Target store to fill the gaping hole next to Hilldale Mall (left vacant after plans for a Whole Foods fell through) were to be presented to Madison's Urban Design Commission in late October.  A neighborhood meeting about the proposed store attracted 300 in October.
• Wisconsin foreclosures increased again in September.  With 4,159 properties now in foreclosure, the state had the 19th highest foreclosure rate in the country, with an increase of 4.8% over August, up 169% over last year, according to RealtyTrac Inc.  Nevada leads the list, as it has for almost three years, with one in every 23 homes in foreclosure.  Two-thirds of nationwide foreclosures are occorring in Arizona, California, Florida, Illinois, and Michigan.
  

Madison WI Homes for Sale - Deal of the Week

201 Kearney Way #305, Waunakee - $75,000

&

201 Kearney Way #306, Waunakee - $79,900

These are 2 condos currently for sale in the condo development Creekside of Waunakee.  Both of these are foreclosures and priced below market value.  All of the condos in this development have sold for at least $94,000 (see here).  Most recently, one sold for $100,000 in September (see here).  These specific condos - 201 Kearney Way #305 & #306 - each sold for $109,900 in 2007!  See the details from those sales here. 

In the past 2 years, only 8 condos have been listed under $100,000 in all of Waunakee - all of them in Creekside of Waunakee.  And all of them listed $98,000-$100,000, except for these two recently listed foreclosed condos that are under $80,000.

Click here to see the details of 201 Kearney Way #305 & #306.  Based on the pictures and comments, it doesn't appear that much TLC is needed on either of these condos.

So...it seems that getting a condo at Creekside of Waunakee for under $80,000 is a very good deal! 

Also of note, the condo fee is $194/month, but it includes heat!

FYI: If you want to search all the current Madison WI Homes for sale, visit my website at www.SethPetersonHomes.com

Sherman Village Market Statistics

Sherman Village is a nice neighborhood in a great location on Madison's north side.  It is located a few blocks north of Warner Park, where you can see the Madison Mallards baseball team, Rhythm & Booms, and other activities&events each summer.  It's also far enough away from Sherman Ave & Northport Dr, so there is not a high amount of traffic.  There is easy access to downtown, just head south on Sherman Ave about 10 minutes or so to get to E. Johnson and the downtown area.  Or for a quieter setting, head northwest 5-10 minutes to Governor Nelson State Park on Lake Mendota. 

Sherman Village connects to Northland Manor and Wheeler Heights, and they are all essentially the same neighborhood.  Most of the homes are small ranches built in the 60's.  It is a great neighborhood for first-time home buyers and young families.  There is even an elementary school (Gompers), middle school (Black Hawk), and 3 parks (Sherman Village, Northland Manor & Wheeler Heights) located right in the neighborhood. 

Here is a market update for the Sherman Village area (Sherman Village, Northland Manor & Wheeler Heights neighborhoods):

These are market statistics from the MLS for January-October each of the past 5 years.  As you can see, and as expected, the average sale price has seen a decline this year.  Dane County as a whole has seen a 9% decline in average sale price over the same time period (see Dane County Market Statistics).  So Sherman Village area's decline of 5.5% is actually better than the Dane County average.  The recession is obviously one reason for the decline.  Also, the fact that there was 89% appreciation in home values from 2000-2006 is cause for decline in values the past couple of years. (see Home Value Depreciation was Inevitable).  Another factor, which is connected to the recent recession we have seen, is the large number of foreclosures.  For example, there are 12 active listings in the Sherman Village area, and 2 of these listings have accepted offers - both are foreclosures with an average list price of $142,400.  One of these is 4414 Maryland Dr, which needs A LOT of work, and will probably be worth around $200,000 when fixed up.

Here is a link to the 10 current houses for sale in the Sherman Village area: View Properties.

Madison WI Homes for Sale - Deal of the Week

1416 Prairie Rd, Madison - $80,000

1416 Prairie Rd is located on the west side of Madison.  Perhaps not the most desirable area of Madison, but certainly not the worst area.  This 1/2 duplex is a foreclosure and currently listed at $80,000.  It has a newer roof & siding on the exterior.  The interior has all new carpeting, paint, cabinets & fixtures!  Washer and dryer are included.  There are cathedral ceilings in the living room.  The basement walks out to the backyard.  Total of 1313 finished sq ft (888 above grade, and 425 in the exposed basement).  The 2009 assessment is $136,300.  You can have this property for less than $80,000.  See the MLS data sheet here: 1416 Prairie Rd details

 

If you would like to search all Madison WI Homes for sale, then visit my website - www.SethPetersonHomes.com.  Thanks!

Real Estate Newsletter - November '09

Dane County Market Update

Dane County Real Estate Market Stats for January-October the past 5 years:

The number of houses on the market is much lower than a year ago, but the actual number of homes sold is almost identical.  Also the average days on market for a home in 2009 is almost identical to last year.  The drastic change from 2008 to 2009 is the average sale price.  As mentioned in my last blog post, it is possible that this is not 100% depreciation.  It is important to note that there are probably fewer high-priced buyers on the market, and more than average first-time home buyers (due to the $8,000 credit) compared to previous years. 

Home Sales Increase in Third Quarter

The third quarter of 2009 saw the first increase in Wisconsin home sales since the recession began in the 4th quarter of 2007.  Compared to the 3rd quarter of 2008, existing homes sales increased 5.8%.  This surge in sales is largely credited to low mortgage rates and the $8,000 first-time home buyer tax credit.

Wisconsin's home sales increase compared favorably to the country as a whole, which saw a 5.9% increase.  The Midwest region was at 5.2% increase.

Although sales increased, the median home price in Wisconsin fell 6.3% in the 3rd quarter of 2009 compared to same period of 2008.  The national reduction in median price was at 11.2%, so Wisconsin managed much better than the national average.  It is likely that a part of the reason for this decrease was a depreciation in house values, but another reason may be the abundance of lower priced homes being sold due to the first-time home buyer credit.  With this in mind, Flor stated "Wisconsin home prices are not nearly as volatile as we have seen in other parts of the country and so purchasing a home in Wisconsin remains a very stable way to build household wealth."

John Flor, Charman of the Board of the Wisconsin Realtors Association, sees a bright future for the economy as we head into 2010: "The extension and expansion of the federal tax credit is not only good news for home buyers and sellers, but also for the economy as a whole. Families buy a wide range of goods and services after they purchase a home, which helps the entire local economy, and sales of starter homes create opportunities for sellers to trade-up to a new or more expensive home."  

See the article from WRA here