Future of The Real Estate Market in Wisconsin

April 20th, 2022 by admin Leave a reply »

Compared to July 2011, home sales in the Beloit, Wisconsin real estate have risen by 17 per cent in 2012, indicating that the market is recovering. According to the Wisconsin Realtors Association, the median price of a home showed an increase for the fifth month in a row. Even though the national economic recovery did not live up to expectations, Wisconsin home sales have managed to bounce back during the past year.

Compared to July 2011 when around 5,100 homes were sold, in July 2012 a little over 6,000 were sold. Median prices were up 2%, in spite of high inventories of homes for sale. Low interest rates and property prices are the main attraction for consumers. Most of these have been first time home buyers. The industry is viewing this as a good sign with hope for recovery in the future. The hope is on a conservative level, though, because of the inventory of homes in the market, along with a number of foreclosure properties that tend to drag down the prices of homes.

Usually, sales and prices over the summer months offer the best picture regarding forecasting the future trend of the real estate market.

Another major factor is the Fiscal Cliff crisis that was recently resolved. The National Association of Realtors has come up with a list of how this bill impacts housing. Briefly, here is the gist:

1- Mortgage cancellation relief is available until Jan 1, 2014.

2- Taxpayers who make less than $110,000 have been given an extension on the deduction for mortgage insurance premiums with retrospective effect from 2012.

3- Those homeowners remodeling their homes will enjoy the 10% energy efficiency tax credit until 2013.

4- For those making $400,000 (for joint tax filers this is $450,000) the capital gains tax is steady at 15% and the $250/$500k exclusion for the sale of a principal residence is still valid.

5- Estate tax exemption has been announced for the first $5 million in individual estates and $10 million for family estates. Beyond this limit the tax will be 40%, which is a 5% increase.

As sales of existing homes are on an increase since the past few months, so are permits for new home construction. The prediction is steady growth in the Beloit Wisconsin real estate market.

Economists feel that with mortgage interest rates at historic lows, an increase in job growth would boost the demand for homes on the market. Since most corporations hire people on a contract basis rather than as permanent employees, there is no incentive to invest in a home. Buying a home involves taking on debt and that requires sustained job growth.

Wisconsin Real Estate Trends>/b>

A third of all Wisconsin real estate market listings are lands for sale and undeveloped lots, offering creative builders a tempting choice. The sale of condos and townhouses are doing quite well and are likely to continue to do so, unlike the detached family home market. Prices are beginning to become steady and this has proved to be an encouraging sign for buyers to enter the Beloit Wisconsin real estate market.


Comments are closed.