There are a number of reasons why I believe we can call this a positive and forward moving housing market. For buyers there continues to be a good inventory of homes to choose from, historically low interest rates and more reasonably priced properties.
According to the Wisconsin Realtors Assn. (WRA) the Wisconsin Housing Authority Index (HAI) is at 245, compared to the U.S. average of 198. This makes Wisconsin homes more affordable than just about anywhere in the U.S. The index shows how much of a median-priced home a median-income buyer can afford. The higher the affordability index the larger the share of homes that can be purchased. Buyers are getting a lot of home for their money in Wisconsin and Sawyer County.
Since September 2009 the WRA HAI has remained above the 200 mark with the exception of one month. The median priced home in Wisconsin is currently at $132,000 and in Sawyer County the median price is $178,000. Our vacation homes help pull that average up.
November home sales in Wisconsin were well above last year and declining prices has moderated. And remember that there have not been any government programs to stimulate sales – a good thing. The first time home buyer credit was active from the fist quarter 2008 to the third quarter in 2010 so sales have gradually improved since that program ended. The strongest region in the State is the north where sales grew 27.7% over November 2010.
Certainly not all conditions are good; we still have foreclosures and some distressed sales to work through but the foreclosure rate in Wisconsin is low compared to the rest of the country. I know that is not exactly a celebration point.
It looks like we are at or close to being in sync with the fundamentals in housing – prices that reflect the true estimated fair market value. The housing market should be good and stabilize as long as interest rates stay low, inventory of homes remain at reasonable levels and pricing is reasonably affordable.
Life Is a Gift…Live It!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15563 Railroad St.
Hayward, WI 54843
nathan@garynathan.com
www.garynathan.com
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