Greetings from Hayward, WI!
There is some interesting information and data on house prices according to a recent article by Stephen Malpezzi in the Wisconsin Real Estate Magazine. Per the National Association of REALTORS® between 1968 and the present day, median household income rose from about $35,000 to about $50,000. On the other hand, the real median NAR house price rose from about $91,000 to a peak just near $220,000 in 2006. The numbers above are after adjustments for inflation, along with related data on median household income.
One surely realizes how this kind of year-after-year growth is not sustainable. Nationally we had 3-5% growth year in and year out which was faster than all other prices, and that was true for much of the decade before the 2006 peak. In Sawyer County we had several years of double digit increases. Fortunately, Wisconsin, and Sawyer County in particular, have fared much better over the past three years than much of the rest of the nation. Most of the Wisconsin housing markets have dipped 8 to 10% from their 2006 peaks.
With all the ups and downs, the U.S. economy (and Wisconsin’s) has turned in an average growth rate, per capita, adjusted for inflation, of around 1.7 percent, for most of the past century.
So what can we expect for 2009? No one has a crystal ball and I certainly won't make any crazy predictions. When we see housing inventories return to half a year’s inventory instead of a year or more we will probably be able to say we are in pretty good shape in the housing sector of the economy. But a great deal will also have to do with what the Fed is doing and will do regarding the overall state of the economy.
Doom and gloom do not have a seat at my table. Personally, I am optimistic that 2009 will be a solid year (see last week's blog) and suggest that all of us be patient during the correction. We will continue to be persistent in providing solid and timely information to buyers and sellers so that they can make informed decisions.
The 26th Annual Lions Pre-Birkie Ski Race is coming up on Saturday, February 7; this is really a great race. Hope all you snowmobilers and skiers are enjoying the snow!
Life is a Gift…Live It!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15617 Railroad Street
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/
