Tips before entering housing market

Pamela Cotant

Though the housing market has slowed nationally, the Capital Region is still a good place to take the leap. Here 's some help for those who plan to enter the real estate market.

1. Sales are heading upward.

"We have seen a steady increase and rise since the beginning of the year, " said John Deininger, executive vice president of the Realtors Association of South Central Wisconsin.

From April to May, sales jumped 20.7 percent, he said.

Sales are "still lagging behind last year, " Deininger said, "but the trend is still on an upward basis. "

Talk nationally about a bubble in the housing market scared some people off but that never really materialized here, he said. In addition, prices are in line with where they should be, Deininger said.

"That confidence is back and people are feeling better about owning real estate, " he said.

The number of sales in Dane County from January to May in 2007 totaled 2,547. In 2006 the figure was 2,871 and in 2005 it was 2,900, according to the South Central Wisconsin Multiple Listing Service. The figures include sales reported through June 15 and as with all numbers from the Multiple Listing Service, homes for sale by owner are not included.

2. It 's a buyers ' market.

Today 's market is based on supply and demand, Deininger said.

"We have inventories right now that are as high as we 've ever seen them, " he said. "So if you 're trying to sell your house, you 're competing with more homes. "

Part of the high inventory is due to the number of condominiums. A large number of new projects and condominium conversions keep the inventory from depleting each year, he said.

We have more condominiums available than we 've ever had, " he said.

In May, there were 9,540 single family homes and 3,771 condominiums for sale in the entire area covered by the South Central Wisconsin Multiple Listing Service.

For the period from January to May, a total of 11,698 homes were for sale, compared to 10,234 in 2006 and 7,087 in 2005 -- a record year for selling homes, according the Multiple Listing Service. The figure includes condominiums but not homes for sale by owner.

A total of 5,441 homes were for sale in Dane County in May of this year, compared to 4,996 in 2006 and 3,014 in 2005.

3. Markets outside of Dane County:

"Generally, Madison both leads into and out of the cycles, " Deininger said.

That means if there is a downward trend, Dane County is the first to follow it but it also will be the first to see a pickup when the market changes. While Dane County had some of the lower numbers last year, several other nearby counties had better sales records, Deininger said.

"Now they 're probably a little slower, " he said.

In 2007, Columbia County had 277 sales from January to May, compared to 300 during that period in 2006, according to the Multiple Listing Service. Dodge County had 251 in that period in 2007 and 263 in 2006 and Sauk County had 287 in 2007 and 299 in 2006. The figures includes sales reported through June 15.

The median sales price during that period in Columbia County was $157,900, in Dodge County it was $133,500 and Sauk County it was $150,000.

4. Where the homes are:

Madison is still growing on its edges and a building boom is under way as condominiums spring up on the Near East and West sides and Downtown.

Some new subdivisions on the edges of the city and in the smaller municipalities around Madison are following traditional neighborhoods by incorporating commercial development. In some cases, the homes also are built closer together, they have detached garages and they are approached by alleys.

Outside Madison, the smaller municipalities that are growing include Deerfield, Westport, Belleville, Black Earth, Blue Mounds, Cambridge, Cottage Grove, Cross Plains, DeForest, McFarland, Mount Horeb, Oregon, Waunakee, Fitchburg, Sun Prairie and Verona.

5. Where to look for a house or condo:

Real estate listed with agents in South Central Wisconsin can be browsed at www.madison.com and www.wisconsinhomes.com. Or you can go to www.fsbomadison.com to see properties for sale by the owner in the Madison area.

Nearly all real estate companies have individual Web sites and some will notify home hunters via e-mail of new properties on the market that fit their criteria.

6. Where to go for home-buying tips and other information:

Prospective home buyers can get detailed advice and explanations of the process through the Department of Housing and Urban Development 's comprehensive Web site at www.hud.gov/buying. The nearest field office is located in Milwaukee at 414-297-3214. Many banks and other lending agencies also give home-buying tips. The South Central Wisconsin Multiple Listing Service is found at www.wisconsinhomes.com.