The typically slow winter months for real estate did not exist in 2018 with over 13,471 homes sold in Wisconsin, which is the largest amount since home sales were tracked back in 2005 per WRA. Home sales rose in February 2018 over 5.8% and the median sale price jumped 7.4% since last year. The pace at which homes are selling and the increase in sales price is a boon for sellers. In fact, the median sale price on a home has climbed over 14.4% in the last two years.
Buyers are not finding what they are looking for and are getting frustrated with homes disappearing off the market before they can even get in the door. A healthy housing market is at 6 months of inventory and we are currently siting at a 3.5 month supply. Shortages are resulting in multiple offers, escalator clauses and hurt feelings when offers are rejected.
“Buyers are now turning their attention to home building. Although new homes cost more that existing homes, buyers are willing to pay more for a new home to get exactly what they want.” Said David Belman, President of Belman Homes. As existing home values climb, the decision to build becomes easier. Homeowners can sell their current home quickly and turn their extra equity into a nice down payment on a new build. There are so many new trends and products available for new homes that it becomes an easy decision. Home building in Wisconsin is growth area in the market for the next few years.
The low interest rates make money affordable and as State unemployment sits at a paltry 3.1% buyers have the means to build. “They key is finding a lot these days. 2018 was the first time in over a decade that Wisconsin permitted more homes than created vacant lots.” Added Belman. Lots are in short supply in key areas due to the amount of regulation and time it takes to get a project ready. If you are planning on building, you will need to move quickly when you find your building site. Choosing the right lot is key and it is a good idea to work with your builder before you build.
The Spring housing market hasn’t even hit yet, so all things considered 2018 is going to be a huge year for Real Estate and home building.