Milwaukee Market Update

Milwaukee Market Update

Milwaukee Market Update. Lack of inventory is one of the major reasons the housing market continues to go up. Is this problem going away soon? Are we going to continue to see housing prices go up? Hi, I’m Rich Barnes, owner/broker of Realty Experts in West Allis, Wisconsin, 53214. Well, there are a few issues we need to address. One is the lack of single-family housing units completed by decade. New home construction continues to decline. In fact, new home inventory is significantly lower than it’s been in the past four decades. New home builds is almost half of what it was the previous decade. From 2009 to 2019, new housing units were 12.6 million and from 2010 to 2019, only 6.5 million homes have been built, which means that we have almost half the supply of new homes being built, which is one of the causes of pricing going up. When you have a lack of supply of inventory, which is what we are seeing across the nation right now, it’s causing bidding wars and drives prices up. So, this brings us up to another question. The rise in home prices in the market. Is it going to crash? In fact, Google recently reported that the search question “when is the housing market going to crash?” spiked 2,450%. If you look at the cost of goods right now, lumber prices have tripled, which means that the cost to build a new home is going to go up significantly. With the cost of building home increasing, it may mean home builders and developers will be less likely to build new homes, which will continue to hurt our supply and drive the prices up. So, is the housing market going to crash in Milwaukee or West Allis? I don’t have a crystal ball, but understanding the facts in this video is a way to help understand some of the reasons the market is in the shape it is right now. Rich Barnes, Realty Experts, and as always, you can relyonrich.com. And I’ll leave you with this quote from Lawrence Yun, chief economist of The National Association of Realtors. “It’s not a bubble, it’s simply a lack of supply.” Thanks and have a great day.

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