Milwaukee - State of the Market

[Marcus Auerbach]

I am on record for stating publicly that I don't see a down turn in 2019, at least for our market here. We are technically way overdue for a downswing after 7 years of going up, but I can't find it in the data. On the most fundamental level it comes down to supply and demand - and while we have very strong demand, supply keeps shrinking! 

13.5% fewer houses active for sale and fewer new listings than last year. We see a similar picture in the surrounding counties and across all price points. As of late even luxury listings are getting multiple offers. I hope this is just winter weather related (we had a very cold winter) and we see more inventory soon. 

Also note how the median asking price has shifted up to 120-160k, which BTW is still far off replacement cost and cost of new construction cost. You would think that more people would cash out and sell, many are definitely in an equity position and mortgage rates have fallen again (totally unexpected as of last year) to about 4%.