Home prices across the U.S. are reaching all-time highs, prompting worry over
another boom-and-bust scenario like we experienced roughly ten years ago.
Yet, as we glance across the state of residential real estate, what is clear
compared to the last extended run of price increases is that lending standards
are now much stronger than they were before. Incomes must be verified, a
reasonable amount of money must be paid toward the home prior to purchase
and a more stringent loan approval process is in place to prevent a repeat
performance of the Great Recession.
New Listings in the Milwaukee region increased 3.8 percent to 2,746. Pending
Sales were down 49.9 percent to 1,043. Inventory levels rose 0.7 percent to
Prices continued to gain traction. The Median Sales Price increased 2.3 percent
to $199,400. Days on Market was down 28.8 percent to 47 days. Buyers felt
empowered as Months Supply of Inventory was up 2.6 percent to 4.0 months.
In addition to a stronger base upon which to conduct real estate transactions,
the overall economy is in better shape than it was a decade ago. More jobs are
available, unemployment is relatively low and workers have more faith in their
wages and the potential for wage increases. Although we continue to battle an
inventory shortage in much of the country, optimism remains high for a
successful summer for buying and selling homes.
All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. You can follow this link:
Metro MLS Market Updates
The views and opinions expressed in this article are those of the authors and should reflect only on trends that affect the economics of real estate.