A housing market bubble occurs when there is a surge in demand for housing that results in real estate prices skyrocketing. A housing bubble happens because more people are seeking housing while the supply of houses is down. Hence, the rapid increase in demand causes soaring prices for an average home and housing inflation.
Determining whether or not we are in a housing market bubble can help you determine whether or not it is a good time to sell your house or buy a new one. When the housing market is in a bubble, it is an ideal time to sell your house because you will most likely get more money than you paid for it. However, it is not a good time to buy a house because of the rising house prices.
Let’s take a closer look at whether there is a Milwaukee housing market bubble, and see how it will impact those looking to buy or sell real estate in the City of Milwaukee.
Milwaukee Real Estate Market Growth
A recent study by the Wisconsin Policy Forum found that Wisconsin’s housing market is increasing at the fastest rate it has in 15 years. If you’d like to sell your home, we buy houses in Wisconsin that owners might consider putting on the market.
The median asking price of houses in Wisconsin has increased by about 34%. Housing costs are even higher in larger cities, so now is the time to sell your house if you live in Milwaukee. A housing market bubble increases home values, but bubbles always pop, and you could lose a significant amount of money on your property if you do not take action soon.
Based on data from RedFin, average single-family homes in Milwaukee sell after only 42 days on the market. Despite the rapid price increases in the housing market, they rank the housing market in Milwaukee as only “somewhat competitive.” This is because not every new home on the market gets multiple offers at the list price.
Still, it remains a good time to sell your home in Milwaukee because of the nationwide housing market inflation since the global pandemic.
Milwaukee Real Estate Market – Is This a bubble?
While it is a great time to sell houses in Milwaukee, the Milwaukee Business Journal states that there has been no sign of a housing bubble in the city as recently as April 2022. It is still a good idea to get your house on the market due to rising house prices, but the housing market has not grown rapidly enough for it to be considered a Milwaukee housing market bubble.
Milwaukee Magazine also consulted with local real estate agents in May 2022 to discuss the rising interest rates of the Milwaukee real estate market. These real estate agents asserted that while the sale price of houses in Milwaukee and market growth have positively impacted home sales, it can be challenging for buyers to find a house within their budget.
Still, they advise not to wait when buying a house in Milwaukee because prices are not going down any time soon. If you’re looking at homeownership in metropolitan areas, now is the time. They also mentioned that the most explosive real estate markets in Milwaukee county include the city itself and the suburb of West Allis.
Expected Housing Price Inflation in Milwaukee by 2025
Kathy Fettke of Real Wealth offers the following predictions for the real estate market by 2025:
Home Prices Will Continue Rising
This will particularly be true of markets filled with millennial buyers. Because the Milwaukee area has plenty of college graduates who have acquired jobs in the city, this prediction will apply to Milwaukee.
Housing Inventory Will Continue To Decrease
This may heavily impact Milwaukee due to the high number of luxury and high-rise apartment buildings constructed and planned for years to come. There is a surplus of renting options (at higher and higher prices) and not enough houses.
More People Will Invest in Property Online
Because virtual sales will increase, it is more important than ever to market your property. Hire a professional realty photographer to take pictures and stage everything in your home.
Alternatively, some investors will buy your home “as is.”
Weigh the pros and cons of marketing your house or selling it as is to decide which option will be best for you and make the most profit. We’re one of the companies that buy houses in Milwaukee that homeowners want to sell. We’re happy to work with you to purchase your Milwaukee house quickly and at a low cost – no matter the condition.
There Will Be Fewer Real Estate Agents in 2025
As mentioned above, online property purchasing will continue to increase in the years to come, and this phenomenon will decrease the need for realtors. In addition, there is a surplus of realtors.
As the housing inventory decreases, real estate will become an even more competitive field. Only the best realtors in the business will make a profit in this increasingly fast-paced environment. They need to up their game and offer even more services to their clients.
The Future Forecasts of the Milwaukee Real Estate Market
While real estate trends can be hard to predict, experts expect prices of homes in Milwaukee to rise over at least the next twelve months. Still, Milwaukee is the seventh most affordable city for homebuyers, so it is a great spot to invest in real estate if you’re looking at affordability.
Through 2022 and beyond, the housing market in Milwaukee will stay around the somewhat competitive category. There are not enough homes to meet the needs of the influx of millennials post-college looking to purchase a home for the first time. The seller’s market is not leaving Milwaukee any time soon, so if you want to sell your home, now is the time.
Timing is everything, though, so while you’ll want to sell this year, you’ll get the biggest bang for your buck if you sell in a warmer month, such as May, June, or July. Avoid selling in the middle of winter because no one wants to go house hunting in the Wisconsin cold!
Is Now a Good Time To Sell Your Milwaukee Home
Is now the best time to sell a house in Milwaukee? These statistics from the Greater Milwaukee Association of Realtors illustrate why now is the time to sell your Milwaukee home.
Prices in Milwaukee Will Continue Rising
Over the next year, the value of your home will continue to increase. Take advantage of these gold real estate prices and opportunities and make the most of this opportunity to sell your house.
Prices in Waukesha, Washington, Elm Grove, and Ozaukee Counties Will Continue to Increase
Even if you live in a county just outside of Milwaukee, such as Elm Grove, you can expect similar trends. Your home will also increase in value despite not living in Milwaukee.
If you sell now, you will most likely receive significantly more money for your home than you paid. This profit will help you face the more challenging aspect of the current housing market: buying a property.
If you want to say, “Buy my house in Elm Grove,” just let us know.
Conclusion
While Milwaukee cannot classify as a housing bubble, the Milwaukee housing market trends indicate that it’s still an excellent time to sell your house. The price of houses in Milwaukee is high and will continue to rise for years to come. Ultimately, a Milwaukee housing market bubble in the future is not out of the question.
These soaring house prices give your home more value and put you as the house seller in a good position. Be careful, though – if you’re also thinking about buying a house, you will most likely pay more than it’s worth due to housing inflation. When the housing market is good for the seller, it’s not as good for the buyer.
