For the third year in a row, Wisconsin’s thriving economy helped boost home sales to reach record levels in 2017 according to the Wisconsin REALTORS® Association’s most recent analysis of the housing market.
Achieving record home sales given the severe shortage of homes on the market truly indicates how hot Wisconsin’s real estate market is. Annual sales in 2017 increased 1.4% compared to 2016 while the median sales price increased a remarkable 5.5% during the same period. If inventory didn’t constrain sales, we would have seen a much larger increase in the number of home sales. The dynamics of the housing market in 2018 is expected to be impacted by a few circumstances…
Considering demand, more millennials are moving into the housing market ramping up the number of buyers in the market place. Adding fuel to the fire is the restricted labor market pushing up household income levels and elevating the demand for more expensive homes. Mortgage rates are expected to rise slightly but should remain low as long as inflation remains in check, the WRA reports. This is all great news for homeowners interested in selling soon. With more buyers than sellers in the current marketplace, sellers often have the upper hand when it comes to negotiating.
On the supply side, inventory of homes on the market remained sparse throughout 2017. The housing supply in 2018 and beyond is expected to be rejuvenated by the growth of new construction homes and multi-family developments in the area. The upsurge in inventory will attempt to offset demand and may influence prices to subside.
All things considered, buying or selling during the slower first quarter of the year may be the smarter strategy to navigate in the prevailing aggressive real estate market. The peak real estate season is right around the corner which will bring more competition for both buyers and sellers, especially in metro regions including southeastern Wisconsin.
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Source for information and data: “Wisconsin Housing Statistics.” WRA: Wisconsin REALTORS Association, www.wra.org/Resources/Property/Wisconsin_Housing_Statistics/.