There could be no better illustration of the confusing nature of today’s discussions about real estate than the market in South Central Wisconsin in 2006. quarter. Despite relentless stories about the “bursting real estate bubble,” and “rising rates taking the steam out of the real estate market,” our local market remained robust in the first quarter.

As you’ll see in the accompanying charts, the overall level of sales activity is similar to a year ago. What has changed, however, is the relationship between the number of sales and the level of active inventory for sale. The result is that, while the overall level of demand is much like it was one year ago, sellers have 50 to 100% more competition on the market for the same number of buyers. The result: it feels slower to many sellers, whose houses may be sitting on the market longer than in the past. However, it remains our experience that homes in good condition that are priced competitively will still sell quickly, sometimes in a matter of days.