With a competitive 2024 market upon us, The McGrady Group is excited to help our clients balance rising home prices, dynamic interest rates, and low inventory levels. The housing market’s current stability, driven by economic factors and population growth throughout Dane County, indicates a promising outlook for buyers and sellers.
Potential changes in buyer agent commissions will also be a topic you’ll hear about this year. But as our clients know, we’ve always been an innovator in lowering fees. We are confident in our ability to lower your buyer agent fees based on the unique nature of your situation through our Buyer Incentive program.
Below are the key trends we’re monitoring. Contact us now to discuss how these trends may impact your 2024 plans.
- Interest Rates and Buyer Activity: Mortgage interest rates, which spiked to their highest level in 23 years, are expected to stabilize by the second half of 2024. This stabilization and easing inflation will encourage more buyers to enter the market. As interest rates become more favorable, we could see an increase in homebuyer activity, especially with cities like Madison, Fitchburg, Sun Prairie, and Middleton experiencing some of the largest population growth rates in the state.
- Home Prices: Home prices in Dane County and Wisconsin have increased. The rise in home prices is attributed to many factors, including inflation stabilization and Federal Reserve projections causing a decline in 30-year mortgage rates from their recent October 2023 high.
- Inventory Levels: Dane County faces historically low inventory levels, leading to increased buyer competition and escalation of home prices. This low inventory trend and high competition will likely persist unless there is a significant influx of listings or new construction increases.
- Buyer Agent Commissions: The legacy real estate agent commission model will evolve as consumers save money via lower fees – which has always been a part of our Mission! We’ll continue to be ahead of this trend by customizing our fee structure and unique closing rebate based on your needs.
- Alternative Seller’s Options: Building on Buyer Agent commission changes, we expect sellers to explore lower-cost alternatives such as FSBO and Direct MLS Listings. You can learn more about these options from our partners at FSBOmadison.com.
The McGrady is ready to help you succeed in a competitive market with rising prices, changing interest rates, and low inventory levels.
Contact us now to discuss how these trends may impact your 2024 plans.
