2016 is turning out to be quite the robust year for Wisconsin real estate sales. What can we expect in 2017?
Interest rates will rise
This inevitable as they have been very low for very long. Rising rates do affect affordability and costs. However, it is important to realize that even with a small increase rates are STILL very low historically. People bought homes in the 80’s with rates above 10%!
Millennial and baby boomers will be very active
These two huge demographic groups are reaching the ages that trigger life changes and moves. Millenials may be getting married & having children, settling down and triggering the desire to buy a home of their own. Boomers are reaching retirement age & are empty nesters possibly ready to downsize from the large family home or maybe invest in a second home.
Prices increases will slow
This is not surprising as they have been on a tear for a while now. Slow and steady appreciation is not a bad thing at all. Bubble prices led to the last crash, remember? Oh, how could we forget…
Inventory will remain low
6 months of inventory is considered a balanced market. In several of the major metropolitan areas of WI, we have less than 6 month supply, favoring sellers. Low inventory will still drive competing offers and price wars.
Geography will make a difference
Markets on the west coast will lead in appreciation. But the Midwest will look very attractive to younger home buyers with the more affordable housing stock. Madison, WI beats the national average in terms of its proportion of millennial buyers. And Milwaukee is one of the cities where it is better to buy than rent.
Whatever 2017 decides to give us, we are ready to help you buy or sell – even relocate if this Wisconsin winter is the last straw.
First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin/Greater Madison, Southwest Wisconsin, Western WI, Central Wisconsin, Northeast Wisconsin and Wisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com
Source: Realtor.com