The upcoming budget cuts at the state and local levels will impact the market for Madison and Dane County real estate. We’ll be taking a look at how these changes will affect the different players in the market. With these budget cuts there will be clear winners and clear losers. We’ll be covering each winner and loser one at a time.
First, we’ll cover the losers. Our first loser is the distressed home owner. We will see some home owners (state employees, teachers, etc) who are barely scraping by right now go through the process of foreclosure, due to either job loss or a reduction in take home pay.
As a result Dane County foreclosures will remain higher than they otherwise would be over the coming months. The elevated foreclosure inventory in Madison and Dane County will pressure home prices and extend our buyer’s market. Time will tell, but we expect home sales this year to decrease from the levels of 2010. You can track the market by reviewing our no-spin market reports at DaneCountyMarket.com.
Next, we’ll cover another loser from the state and local budget cuts: the home seller.