With all of the grim “news” that we’ve been faced with through the media over these past several months, it may be hard to believe that the real estate market is doing just fine. Every time I pick up a newspaper or turn on the television, I undoubtedly see words like “foreclosure”, “declining home value”, or, my personal favorite, “recession”. It’s no wonder that so many people are feeling skittish about achieving their next level of home ownership.

So, what exactly is going on right now? According to the OFHEO(Office of Federal Housing Enterprise Oversight) “Price Appreciation Report”, home prices in Wisconsin have continued to rise steadily. As a matter of fact, sales were up by 3.38% the first quarter of the year as compared to the 1st quarter of last year. Considering that we are entering a much more conservative marketplace than we had experienced over the earlier part of the decade, this is a pretty good appreciation rate.

Why all of the doom and gloom from the media then, you may wonder?

First of all, yes, there are a handful of states that have faced declining home values this year. Michigan, Ohio, Minnesota, Nevada, Arizona, California, Massachusetts, Rhode Island, Florida, Connecticut, New Jersey, New York, Maine, Vermont, and West Virginia have all felt the pinch. Out of these fifteen states, however, ten of them are either on the east or west coast, which is where most of the major national media sources are. So are we experiencing a nationwide epidemic, or are reporters quick to generalize what really boils down to a localized problem?

Another thing that we must consider is the magnitude of the housing boom we are coming from. The growth of appreciation that we saw in the height of the boom back in 2005 was the highest we had seen in over 25 years. The average appreciation at that time was 13.43%! Compare that to a $100,000 CD through Chase, one of the nation’s largest financial institutions, whose rate of return hovers around 5%.

What makes things even more interesting is that all of the fifteen states that are currently facing “hardships” today were appreciating at rates well above 5%, with the exception of Michigan and Ohio, who on average saw increases of 4.93% and 4.81%, respectively. Seven of the states saw increases of over 11%, while 4 experienced price increases of 24% or more! As the saying goes, all good things must come to an end.

To sum things up, while homes are still appreciating at normal rates, there are more homes on the market now than there were during the boom, creating a more competitive marketplace. What does this mean for homeowners that want to sell in the current market? They need to be competitive too, naturally!

Here’s what you can do to stand out to today’s buyers:

• Ensure your home is in the best condition it can be
• Fix things that need to be fixed
• Keep things as clean as you can
• Eliminate clutter
• Decorate tastefully
• Realize that you cannot expect a 10-20% annual appreciation today (yes, this was common in Madison a couple of years ago!) and price accordingly
• Take advantage of every marketing tool available- a simple yard sign and an ad in the paper just won’t do the job in today’s market.

Thanks for reading and have a great day!

Jessica Riphenburg is a Realtor with Stark Company Realtors, located at 4509 Cottage Grove Rd,Madison,WI,53716. If you have questions regarding the local real estate market or would like further information, feel free to contact her at

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