I also had a swarm of showings today before the offer was accepted today. 

What does this mean?

In the past I wrote about the buyers market, and why buyers should act back then.  This is a fairly accurate reflection of what has happened so I won't repeat it.

Then I wrote about how the market was changing and deals were drying up and how as buyers realize this they will re-enter the market, encouraged/hopeful sellers would stop giving the shop away and markets would tighten up more.   

In the Madison Wi market, this has happened in some of our micro markets.  more buyers wiping off the distressed deals, emboldened sellers, buyers worried they will lose out.  

One thing I  think has surprised me is the speed of this.  In the Madison Wisconsin (I have to keep mentioning this is a specific market and not all areas are the same).  In fact it worries me a little, if we stall out. There is little sign of that now.

So what markets are doing well?  Well for a start, the $160-200k is hot!   below 250 is pretty good.  

Above 500 is slow still.  Funnily below $140 is also slow and I have no answer to that, except the buyers can afford something for $160k and $140 is not enough quality.

A final truth, there are still homes that are priced to cause it to sell and those the market deems to be over priced.  There is not good competition for well priced homes while the market ignores the others. 

Is this causing shortages and price increases?   No not in the least.  There is still enough inventory, and also a surplus of sellers wanting to move.  Putting their homes on the market keeps it supplied. 

Good news, as these sellers look to move up, so the activity in higher price bands increases too,

Real Estate Guy has been selling Madison area homes for 17 years.  Search for homes in Madison Wi