Wisconsin is one state where the bottom of the real estate market may be in sight, according to recent sales figures. Several areas are experiencing market recovery despite rising unemployment — thanks in large part to the first time home buyers tax credits and bargain-priced foreclosures. See the following article from Housing Predictor for more.
Despite the recessionary economy, home prices are rising in some areas of Wisconsin even as sales lag. The bottom of the housing market may be closer than many people think after prices fell broadly over the last few years. High double-digit losses in values from the market’s peak have been common place.
The federal government’s first time home buyers tax credit and bargain-priced foreclosures are stimulating sales activity. Despite one of the highest unemployment rates in the country in the worst downturn since the U.S. Savings and Loan Crisis in the late 1980s, some new home builders catering to first time buyers are experiencing a surge in business.
The downward trend in home sales may be near bottoming in Milwaukee, where beer brewing has made the community a land mark for generations. Brewing beer employs more people in Milwaukee than any where else in the nation. But growing unemployment in other sectors is hurting the local economy with a rise in foreclosures.
An expansion of the first time home buyers incentive could go a long way in helping the market in Milwaukee, where homeowners are looking to the government for aid. Bank owned properties account for nearly half of all sales, including many sold at auction. Housing Predictor forecasts that Milwaukee will end the year with forecast average housing deflation of 9.8%.
However, home sales aren’t slow everywhere in Wisconsin. In Madison housing sales are surging after experiencing their worst downturn in more than a decade the beginning of the year. There is also strong evidence that prices are rebounding because of government incentives in Madison. However, the rise in prices from the deflationary cycle may be short-lived unless further actions are taken to help the local marketplace.
Local Markets at a Glance
The local economy is strongly supported by high tech and government, which are growing in the new economy and as a result housing values are only forecast to end the year with total deflation averaging 4.2% in Madison, most of which has already been felt.
In Green Bay, foreclosures have severely damaged the housing market, pulling values lower after remaining fairly stable for the longest time when the market first began slowing. Mortgage servicing companies have been selling foreclosures in Green Bay for as little as a dime on a dollar just to get rid of the properties.
Despite all of its play in the national media, Green Bay is actually a fairly small housing market in the town known for the Green Bay Packers football team. Green Bay housing prices are forecast to deflate an average of 7.9% for the year.
In Kenosha home sales are also improving amid a marketplace that has been slow in terms of sales volume. There’s no doubt the global financial crisis has impacted the economy in Kenosha, where some of Wisconsin’s best cheese is manufactured. Consumer confidence will have to improve to kick start the market into a full recovery phase. But with some of the lowest priced homes in the state, Kenosha will get through the downturn like most of Wisconsin has — one beer at a time. Kenosha is forecast to deflate just 5.7% in home values in 2009.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate analysis and prediction site.