State of the Market — February 2015

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Horning, Joe 2 head shot 0612

A letter from Joseph A. Horning, President of Shorewest, REALTORS®

January is a month of reflecting on the past and looking forward to the future. The past year of 2014 developed into a healthy real estate market in Southeastern Wisconsin. Home sales improved throughout the year, ending with the strongest fourth quarter seen since 2005 and median home prices rising throughout the state in 33 of the last 34 months.

In the past year, the market changed from one filled largely with distressed properties (short sales and foreclosures), to a traditional market with first-time home buyers, move-up buyers with children and empty-nesters. According to the First Time Home Buyers Mortgage Share Index, 46% of all buyers were first-time home buyers from September to December 2014. Additionally, 2014 was the best year in the United States economic recovery since the recession of 2008.

The start of 2015 brings with it optimistic news from multiple sources in the market. National economists predict exciting growth. According to the National Association of Realtors®, existing-home sales are forecasted to rise about 7% this year, behind a strengthening economy, solid job gains and a healthy increase in home prices.

This is the year for homeowners, first-time home buyers and Milwaukee. The Milwaukee region is forecasted to outpace the rest of the nation with a 4.9% increase in home values, according to the Clear Capital’s Home Data Index Market Report, based on data and analysis through December 2014.

We are excited about the predictions of 2015 and are already reaping the benefits. Many of our Realtors have reported that they are busier now than in the summer market. As interest rates are the lowest they’ve been in a while, many people are also refinancing their homes. Buyers with adjustable rate mortgages are benefiting by being able to lock in to today’s rates under 4%.

Thank you for trusting us for your home buying and selling needs.

 

Categories: Quarterly Newsletter, Uncategorized

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