COVID-19's impact on the Wisconsin housing market

9 Dec 2020 12:30 PM | WiscoREIA (Administrator)

The area housing market is starting to see some changes... and it's for the better.

America's economy is reeling, but realtor Dan Ludwig says people are still buying homes.

"Demand. Absolutely demand," said Ludwig.

The Wisconsin Realtors Associations says May home sales slid almost 25% from 2019. Sales rebounded in June to just a 4.5% dip.

Realtors Association consultant David Clark says there are a few reasons why.

"We were still very pleasantly surprised., given a lot of the sales closed in June of this year were based on contracts accepted during the point in time the economy was basically on lock down," said Clark, "mortgage rates are at historical lows. In the last three months April, May and June we recorded new record lows each of those months."

Ludwig says living and working from smaller spaces is also a contributing factor.

"People are understanding that going through this COVID, I want a house. If I'm going to be isolated I want to be isolated in a house," said Ludwig.

Realtors are also seeing a new generation of buyers.

"We're looking at a lot of millennials right now who are purchasing these homes," said Ludwig.

"There has been a move of millenials into owner occupied housing," said Clark, "they have started making that shift and that will continue to fuel the demand."

Buyers are also willing to pay more. Median prices are up by 3.6% from last year.

Ludwig said, "real estate is all about supply and demand and whenever you have more demand than supply the price is going to go up."

"The market can be characterized as a strong seller's market," said Clark, "the demand side has bounced back pretty well."

A sellers market, because there are plenty of people ready to bid on their next home sweet home.


Source: Fox 11 Online

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