A real estate rally in Ozaukee

Not only are houses selling as soon as they hit the market, they are being purchased for above asking price as interest rates remain low, people gravitate toward suburbs

NO SOONER ARE “for sale” signs put up outside houses in Ozaukee County than a “sold” sign is ready to take its place. It’s a hot real estate market, and on Tuesday Tom Didier of Re/Max United stood outside a house on Monroe Street in Port Washington that attracted four offers, most over the asking price of $234,900, within four days. Photo by Sam Arendt
By 
KRISTYN HALBIG ZIEHM
Ozaukee Press staff

If you subscribe to the old chestnut that location is everything in real estate, Ozaukee County is the place to be.

The real estate market here is so hot, it’s practically sizzling, local real estate agents say. It’s not uncommon for buyers to get into bidding wars and prices to escalate beyond the asking price.

For example, 135 houses in Port Washington have sold so far this year, and 78 of them, or 58%, have sold at full price or more, Tom Didier of Re/Max United said.

“I’ve probably sold more homes in Port Washington over asking than I have in my 25 years,” Didier said.  

It’s not just happening in Port Washington, real estate agents said.

“No matter if it’s Port or Mequon, Fredonia or the towns, if it’s priced right it’s moving,” Rick Schmit of Schmit Realty said. 

“There’s such a low inventory right now, the seller is pretty much in charge,” Scott Hollrith of Hollrith Realty said. “They’re pretty much getting what they want.”

August sales increased 20% from last year, a higher percentage increase than in Waukesha, Washington and Milwaukee counties, according to the Greater Milwaukee Association of Realtors.

The market is so hot that Barb Beattie of Barb Beattie Realty Group said just 4-1/2 hours after she listed one Port Washington house on Multiple Listing Service — without a photo of the home — she had an accepted offer.

“It was a cash offer for the asking price,” Beattie said.

The least expensive house available in Port Washington Monday was priced at $224,000, she said, and in Belgium the lowest-priced house was listed for $339,900 — and it’s still being built.

“Everything else has an offer,” she said. “There just is no inventory.”

Beattie said she maintains a list of potential buyers who she will call before listing a property on MLS. 

It’s not uncommon today, she added, for buyers to make an offer with an accelerator clause, agreeing that if another offer comes in on the property that they will increase their price by a set amount to a predetermined amount.

Buyers are also starting to delete typical contingencies in offers, such as home inspections or radon tests, to make them more desirable, Beattie said.

The typical offer contingency that the buyer first must sell their home isn’t seen as often today either, she said, as buyers vie for houses that are quickly snapped up. 

“They assume their house is going to sell quickly too,” Beattie said. “It’s just so busy. There are bidding wars out there. We’ve had offers $10,000, $17,000, $20,000 over asking and they’re appraising at that price. 

“This year, with a virus and a (presidential) election — it’s just crazy. I’ve never seen anything like this.”

It’s not just high-end homes that are moving.

“It’s across the board — single-family homes, condos, land —all of them,” Beattie said.

It’s not uncommon today to place a home on the market and limit the showings to a few days, Didier said. Then the agent will collect the offers and present them all at once to the seller.

Sellers aren’t always picking the high offer, either, he noted. Instead, they often are going for the “cleanest” offer, one with few, if any, contingencies.

Schmit noted that multiple offers are often being made within a few days — “maybe even a day, depending on the house,” he said.

The planets are aligning to make this a hot market, Didier said — interest rates are low, the housing inventory is slim and the pandemic and racial unrest have prompted residents of large cities to move to the suburbs.

“There seem to be wealthy people from Milwaukee and Chicago looking for estate-type properties away from large populations,” he said, noting it’s not just starter or mid-level houses that are in demand.

“People want their own little slice of heaven, and in Ozaukee County it’s nice and safe,” he said. 

It’s not just safety that’s prompting the hot market.

There are fewer houses available since residents who are staying home due to the coronavirus pandemic fixing up their houses and remaining in them longer.

At the same time, the number of first-time buyers is increasing, Schmit said. 

Further constricting the market is the fact there isn’t a lot of new construction, he said. 

“The cost of construction is through the roof,” Schmit said. “The cost of labor is high, the cost of materials is high and construction takes longer.” 

Interest rates are low, as low as 2% to 2.5%, Didier said, making home ownership affordable.

Even when there are contingencies, such as home inspections, it’s almost impossible to get contractors to make needed repairs, Didier said. Often buyers will take money off the price instead of making repairs.

While most buyers will have to turn around and spend more money to buy a new home, there are people taking advantage of the hot market, selling their houses now while prices are high.

Didier talked of a man who decided to put his Grafton home up for sale and rent for a while.

“He said, ‘This is crazy. I’m going to rent and hope it settles down. I’ll buy again then,’” Didier said.

Beattie agreed, saying, “Not everyone who sells is looking to buy right away. There are people who are taking advantage of the good market and cashing out.”

But, Didier said, houses have to be priced right. 

Sometimes sellers will find themselves house-hunting even after the sale. Beattie said she will work with them to find a rental until they find their own new home.

The lesson is that  sellers are in charge, at least for now, the real estate agents said.

“It’s been a good year, and I believe next year is going to be good, too,” Hollrith said. “I haven’t seen anything to indicate otherwise.”

Category:

Feedback:

Click Here to Send a Letter to the Editor

Ozaukee Press

Wisconsin’s largest paid circulation community weekly newspaper. Serving Port Washington, Saukville, Grafton, Fredonia, Belgium, as well as Ozaukee County government. Locally owned and printed in Port Washington, Wisconsin.

125 E. Main St.
Port Washington, WI 53074
(262) 284-3494
 

CONNECT


User login