Happy New Year – Market, Family, and Investing Updated

Happy New Year from Keith and Kinsey!

Looking back on 2024, we’re truly thankful for the connections, support, and shared experiences with family, friends, and clients that make each year so special. We hope your year was filled with happiness, success, and meaningful moments too.

Here’s to an even brighter year ahead!

Schulz Family Update

As we reflect on 2024, it’s been a year of much-needed steadiness—a refreshing change from the chaos of recent years. The most notable change in our household was bittersweet: we said goodbye to our beloved Boston Terrier, Dyna, at the very end of 2023. However, in February, we welcomed a new furry family member, Rocky—a bundle of energy who’s 54% German Shorthaired Pointer, 33% Australian Shepherd, and 100% personality! A hunter and herding dog who does neither…

The girls continue to grow and keep us on our toes. Charley, now 11 and in 6th grade, has adjusted beautifully to middle school and is thriving. This year, she balanced another season of LEGO robotics and soccer with a new adventure—joining the cross-country team. Sylvie, who turns 10 soon, is now in 4th grade. She kept busy with LEGO robotics, dive club, and gymnastics. It’s been a joy to watch both girls explore their evolving interests, and we’re excited to see where their passions take them in the years ahead.

Keith dedicated much of his time this year to a new development project (more on that below), in addition to his regular real estate sales and property management work. He’s also made time for a few hobbies. He installed a new transmission in the 442 and attended several car shows, where work and play happily overlapped. He’s still getting out on the mountain bike occasionally and is looking forward to improving his snowboarding skills (or lack thereof) this winter.

Kinsey had a great year with no medical challenges. She continues to help her clients achieve their real estate goals. She hit her goal of 100 bootcamp sessions this year, tackled the occasional 5K, and, of course, kept her crochet hooks busy. She insists her yarn is a collection, not hoarding, and is looking forward to doing a few craft shows with friends in 2025 while working through her stash of yarn. Her goal for the coming year: 150 bootcamp sessions.

Together, we enjoyed family trips to Aruba, cabin retreats, and camping adventures in Decorah, Door County, and Starved Rock.

Business/Market Update

As 2024 comes to a close, the real estate market in Dane County has mirrored the trends of 2023, with statewide sales remaining subdued. Homeowners continue to hold onto their low-interest loans secured in prior years, while strong buyer demand persists—albeit calmer than in previous years—despite higher interest rates.

Although final stats aren’t yet available, Dane County is on track for a modest 5% increase in sales over 2023. However, this still represents a significant 25% drop compared to the 10-year average. Prices, on the other hand, are set to rise by an impressive 8.5%—exceeding projections. This surge highlights the ongoing inventory shortage, which continues to place upward pressure on home values, even amidst affordability challenges.

The first half of the year saw continued bidding wars, though with fewer competing buyers than during the frenzied pace of recent years. As affordability challenges mounted, buyer activity slowed in the latter half of the year, resulting in less competition and, in some cases, favorable opportunities for well-prepared buyers.

In step with local trends, Great Rock Realty and Keith and Kinsey Real Estate experienced a slight improvement in sales volume. Many of our listings sold above asking price; however, toward the end of the year, buyers increasingly secured great deals with little to no competition—a notable shift from the highly competitive landscape of previous years.

Looking ahead to 2025, we anticipate a slight improvement in interest rates, which should enhance affordability for buyers. Gradual increases in available inventory could help bring us closer to a balanced market. While the market will likely continue to favor sellers, the playing field is expected to level out somewhat compared to recent years. We anticipate the return of some bidding wars in the spring, especially if rates drop quickly. However, buyer competition is expected to remain more subdued than in past years.

Real Estate Investing

It’s been a big year for us on the investing front as we achieved a major milestone: our first-ever ground-up development project was approved by the City of Verona for zoning and permitting. During the first half of the year, we navigated the design and bidding processes, and construction has been underway in the latter half. Phase 1 is currently on track for completion by late January to early February.

In case you haven’t been following, this development is called 3rd Space Garages. It’s a luxury storage condo project with a clubhouse, located just south of Whalen Rd. on Liberty Dr. in Verona (about a quarter mile north of Costco). Our vision is to create a community for hobbyists—whether into motorsports, woodworking, or other interests—to store their toys, pursue their hobbies, and connect with like-minded individuals. Think of it as an extension of your garage and a great place to hang out. Keith is especially excited for his own space to store the camper and jet skis, and a place to install a lift and tinker with classic cars. If anyone would like a tour of this new facility—whether you’re interested or just curious—don’t hesitate to reach out!

With this development project in full swing and a major overhaul on one of our rentals (after a long-term tenant transitioned to assisted living), we didn’t have much time for other projects this year. As a result, we haven’t done any new flips or added any long-term rentals recently, but our current portfolio continues to perform well. As always, we’ll be on the lookout for rental, rehab, or investment opportunities in 2025. If you know of something off-market, please let us know!

We managed to squeeze in four trips to Eagle Camp Lodge this year, and it was rented out for others to enjoy the rest of the time. The lodge continues to be a cherished family retreat, and it’s always rewarding to hear about the memories made by our guests. Rentals have been steady over the past few years, making it another successful year. If you’re considering a stay, don’t hesitate to ask about our friends and family discount! There’s still plenty of availability in 2025.

We’ve always thought a second vacation rental would be fun, but it has become increasingly challenging to make the numbers work, so it’s fallen on our priority list. That said, if you know of a promising market or property, we’re all ears.

As always, if you’re interested in real estate investment, feel free to reach out. We’re always happy to advise and help people get started.

As always, we are thankful for each and every one of you—our friends, family, and clients. We truly appreciate your business and those who have shared our name with friends. Our business thrives on referrals and word of mouth, and each of you has played a crucial role in our success. Your support means the world to us. To those of you who bought or sold a home this year, we hope you are enjoying your new chapter, and we wish everyone a wonderful new year!

Happy New Year! Keep in touch!

Have an amazing 2025!