The Impact of Housing on the Economy

I read recently about the economic impact that home sales have on a community, and for that matter on Wisconsin and our country. According to Mike Theo or the Wisconsin Realtors Assn. the real estate industry accounted for $28.2 billion or 12.5 percent of Wisconsin’s gross domestic product in 2012. Every time a home sells it generates more than $13,000 in income from real estate related industries and over $5,000 of additional consumer spending. Plus there is another $3,000 that will be spent by that new home owner on remodeling and maintenance projects. Add to that the fact that another $11,000 can be directly linked to spending in local restaurants, on sporting events, support for local charities and more. There is no doubt that housing is a very important economic driver so let’s hope the upswing in 2013 will continue for 2014 and beyond.

Gary Nathan

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Home Sales up for the Year but Dip in November

2013 November Home Sales Report

Sawyer County – November residential sales in Sawyer County were up 12.5%; total sales this year were 36 as compared to November 2012 sales of 32 households. During the same November period the median price dropped 15.3% from $177,000 in 2012 compared to $150,000 this November.  Sawyer County has a strong median price as compared to the $127,000 median price in the rest of the north region of Wisconsin.

Madison - According to the latest housing report by the Wisconsin REALTORS® Association (WRA), Wisconsin home sales fell 6 percent in November 2013 when compared to November 2012, although total sales for the year remain ahead of 2012, Comparing the first 11 months, home sales were up 11.1 percent in 2013 over 2012. Prices were also higher in November, rising 4.7 percent above the same month last year, to a statewide median of $136,000.

“Over the last two months, the housing market has definitely cooled from the red-hot pace that characterized the first three quarters of 2013,” said Steve Lane, WRA board chairman.

“Although sellers would certainly prefer prices to increase faster, the more moderate rate of median price appreciation of 4.7 percent is healthy for the Wisconsin market,” said Michael Theo, WRA President and CEO. He noted that with current inflation lower than 2 percent, the modest home price appreciation will build total household wealth in real terms. “Wisconsin has enjoyed relatively mild swings in home prices relative to some of the more volatile regions of the country, and that stability keeps the dream of homeownership attainable for Wisconsinresidents,” he said.

The Wisconsin Housing Affordability Index, which shows the percent of the median-priced home that the family with median income can afford to buy assuming current mortgage rates and 20 percent down, stood at 232. This is up slightly from the October value of 225, but well below the level of November 2012 when it was at 275.

Happy New Year!

Life is a Gift...

Live it!

Gary Nathan

Amanda Mavis