Winter has definitely arrived and once again it’s a time to reflect on the events of the past year, while planning for the future, as well. It’s a time for fond memories and a shrewd assessment of past practices as we enter into a new year.
On the real estate front, we can look back at 2017 quite favorably. While existing home inventory remained tight, home sales through October were up in six of those months over the same periods in 2016. In fact, October’s existing home sales in Wisconsin were up 4.9 percent over last year; sales were up 2 percent. The average home price in Wisconsin continued to rise in October to $175,000, a $10,000 increase over last year. Listings, however, were down 10% over last year to
the lowest point since 1999.
This trend of low inventory, motivated buyers and increased average home costs has continued throughout the industry for quite a while. However, there may be some change on the horizon if
October’s numbers are any indication.
The number of new homes placed on the market rose 4.1 percent in October, compared to October 2016. The increase in supply comes from three sources: foreclosure activity, new construction and, perhaps most importantly, new listings of existing homes. Nationwide, this surge
puts inventory at a 10-year high. There is hope throughout the industry that this trend will continue into 2018, at least through the spring.
It’s good to see improvement on more listings and hopefully this trend will continue in 2018. As mortgage rates continue to stay low, I encourage buyers to talk with their mortgage lender to get preapproved as they start their home search. This will give them the advantage when ready to place an offer. If you need recommendations, please contact me!
All the very best in 2018!
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