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Wisconsin is known for its renowned cheese industry, and its ranchers produce the country's biggest stockpile of cranberries and ginseng from farming communities throughout the state. Looking past agribusiness, Wisconsin's greatest enterprises also include medical services and assembling.
Lakes, woods, valleys, and moving slopes interfere with Wisconsin's rambling farmlands and give a lot of chances for open-air diversion. Some of its metro areas include Milwaukee, Wisconsin Dells, Madison, and Green Sound.
Milwaukee, the most populated city in Wisconsin, is an excellent area for real estate and a great place to invest. The Milwaukee housing market continues to hold strong even with high-interest rates, with average housing prices increasing by 9.4% in October this year since October 2021.
Moreover, there are only 2.3 months of inventory for homes in Milwaukee as of October 2022, when there is typically between 5-6 months' supply in the average market. That’s a 23.3% decrease from the same time the year before.
However, with the rising mortgage rates and far fewer home sales being closed, the Milwaukee housing market is showing signs of cooling down. Still, with such a short inventory supply and high home prices, a cool-down will likely not happen for the rest of the year and into 2023. We predict the housing market will still be a seller’s market moving into 2023 and the first quarter.
Milwaukee, Wisconsin Housing Market Statistics- October 2021- October 2022
October 2021
October 2022
+/-
New Listings
1354
1038
-23.3%
1198
853
-28.8%
Average Sales Price
$314,660
$344,104
+9.4%
We also see similar trends in the whole SE Wisconsin area, and closed sales are decreasing, but so are new listings.
2819
2078
-26.3%
2984
2393
-19.8%
Source: Greater Milwaukee Association of REALTORS®
Based on the above statistics, we have made an educated hypothesis on how the housing market will go in the coming months in Milwaukee, Wisconsin, and the surrounding areas.
While the mortgage rates are rising, the demand for houses is still high as the market is even more undersupplied than last year. As a result, housing prices in Milwaukee and even some of its surrounding areas will likely stay the same or steadily rise at a much slower rate because of the competitive seller's housing market but high-interest rates.
According to the above market data, the housing market for the whole SE Wisconsin area follows similar trends as in Milwaukee. For example, in October, new listings and home sales went down across the whole SE Wisconsin area year-over-year. Some counties in the SE Wisconsin area include Waukesha, Milwaukee, Washington, and Racine county.
Similar housing market trends are in effect throughout the state of Wisconsin. The time on the market will continue to increase slowly. It is no longer the trend for buyers to feel the need to skip inspection or go well beyond the list price. And sellers still often think that the housing market is in the same position as it was in 2021. As a result, it can take longer for a buyer to accept a buy from a seller. So, for now, while buyers can still expect their home to sell in the Milwaukee area easily, sellers should also not expect interested buyers to put in offers immediately or to get way over the market value price.
Cities in the Milwaukee County Area
*Some of Milwaukee County’s surrounding cities and their population include:
Milwaukee
Pop. 580,000
Waukesha
Pop. 71,000
Wauwatosa
Pop. 48,000
West Allis
Pop. 60,000
Greenfield
Pop. 38,000
New Berlin
Pop. 40,000
*From sources across the web
Additionally, housing prices are continuing to be higher than last year. For example, there is a 9.4% increase in average home sale prices in Milwaukee from October 2021 through October this year. So, while this isn't an astronomical increase in home prices year-over-year, it is still significant to note that housing prices have continued to go up in a market that was already a competitive seller's market with inflated housing prices and interest rates.
We predict that the Milwaukee housing market and its surrounding areas will continue to be a seller's market in the United States going into 2022. However, people are not holding off as they foresee a crash shortly with incredibly high-interest rates. So, we also predict that buyers will start seeing more of an inventory of homes in the Milwaukee metro area, but we still predict that the real estate activity to continue to grow into 2023.
However, we also predict that limited housing and properties will remain available as the market steadies. Additionally, interested buyers and renters may have to pay more than they are right now for their housing choice when looking in the Milwaukee area and other neighboring cities such as Whitefish Bay, Glendale, and Shorewood, Wisconsin.
The Milwaukee area has always brought in interested investors and homebuyers as it's an area that has a lot of opportunity, recreation, and excitement. Like most metro areas, good real estate is hard to come by in Milwaukee, Wisconsin. There are many great areas to invest in when considering the Milwaukee area, such as Bayview, Jackson Park, and Juneau Town.
Many of the top areas in Milwaukee to invest in real estate, according to Jeff Rohde, a real estate expert with 25 years of experience, have at or over 70% of its residents renting.
Milwaukee And National Average Rental Trends:
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Is it A Good Time to Invest in Milwaukee Real Estate?
Our conclusion? Milwaukee is a great place for investing in real estate. With so much to offer, there is rarely a time when it isn't a good idea to invest in Milwaukee real estate. In addition, Milwaukee hosts large events in American Family Field and Fiserv Forum. Milwaukee is also known for it’s amazing breweries and is a city that has a heart for baseball.
The Milwaukee area has a consistently short supply of real estate, so when an investment opportunity comes up at a fair market price, it is rarely a bad investment. Moreover, with the strong job market and high demand for housing, we predict that investing in real estate within the coming months can still be profitable.
Milwaukee’s real estate market is still competitive despite high-interest rates. However, it remains a seller's market as there is more demand than supply.
In October, the Milwaukee housing market had 1038 new listings, an over 23% decrease since last October. Higher interest rates contribute to homes in Milwaukee not flying off the market, but the low supply of inventory contributes to homes in Milwaukee still selling relatively quickly.
For the real estate market to switch to a buyer's market, the inventory needs to increase by several months and/or new construction needs to increase. Buyer interest is still high, and inventory is still incredibly low. The Milwaukee housing market could become a buyer's market, but likely not for a while. Therefore, those looking to purchase real estate in Milwaukee, Wisconsin, and its surrounding areas during the upcoming months should consider that it is still a seller's market before submitting an offer. We are seeing similar real estate trends in the South East Wisconsin area. In October 2022, there were 2393 new homes on the market, an almost 20% decrease from the same time last year.
Why are fewer (-28.8% year-over-year in October 2022) closed sales in Milwaukee, Wisconsin, when homes are selling for more than they were on average less year?
Houses for sale across Milwaukee and the surrounding areas are getting fewer multiple offers and rarely sell without an inspection. However, with few homes on the market, the Milwaukee area housing market is still strong. The imbalance of homes available versus interested buyers in the area makes Milwaukee a hot market and a dream for home sellers.
Therefore, we predict the Milwaukee area will still be a seller's market going into 2023 and possibly even past the first quarter of 2023.