2012 Wisconsin Housing Outlook

With 2011 firmly in the rearview mirror now is the time to take a look beyond at the new year. There is a lot of good news on the horizon if you are planning to build or buy your new home in Wisconsin in 2012. Typically election years are down years but after reviewing some of these key indicators Belman Homes is a tad more optimistic for building in 2012. Here is a compliation of new facts and tidbits on housing that I have found recently.

Highlights on Housing:

•Housing Affordability Index (HAI) for Wisconsin last fall was 245 up 19 points from the previous year, which means more homes are available for a median income family.
(A median income family can buy 245% of the homes available on the market)

•Wisconsin homes are far more affordable than the nation in terms of the housing index. The National score is 198.

•Caps are now in place on property tax bills will help keep homes more affordable in Wisconsin. Plus the largest component of those bills, the school taxes dropped last year 1 percent.

•Interest rates for a 30 year mortgage are at 3.875%. Over the last 20 years the average 30 year mortage interest rate was 7.305%. (From 1991 to 2011) That’s almost half!

•Existing homes sales are up this past fall 14.8% compared the previous year.

•In the South Central Region of Wisconsin (our market) our sales were up 25.2 % the second largest gain in the whole State compared to the previous year.

•National unemployment rate has dropped to 8.6%.

•Consumer confedence is on the rise. Up 9.3 points from November 2011 to December 2011.

•Wisconsin if far below the National average in term of forclosures. Almost a half a percent less difference.

•Wisconsin’s per capita income fell .2 % over the last 3 years while the national average fell 1.2%. Although seeing this number decline is not good Wisconsin is a whole percent higher than the nation which means we have maintained a steady in terms of income and employment.

•Total existing homes available on the market dropped in November 5.8%. This shows both that people are buying homes and the inventory levels are declining. Both good signs.

•New home sales rose for the 3rd consecutive month.

•30 year mortgage interest rates are the lowest in 10 years. Heck they are the lowest in over 40 years.

Here are the 30 year mortgage rates over the last 3 years or so.

‘Charts Reproduced with the permission of Mortgage-X.com’

Here are the 30 year mortgage rates over the last 20 years.

These are all very good signs indeed. One last tidbit before I go. Did you know housing accounts for over 17% of our economy? Perhaps 2012 will be the year housing pulls the economy out of the recession.

1/20/2011 Update
•Housing starts rose in December 4.4% from previous year.

•Only 23% of renters are happy with their current residence.

•1/3 of homebuyers would prefer to buy new homes if they bought another home.

Article Sources:
http://www.realestateabc.com/outlook.htm
http://www.freddiemac.com/pmms/pmms30.htm
http://www.wra.org/WREM/Jan2012/
http://mortgage-x.com/

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Comments
One Response to “2012 Wisconsin Housing Outlook”
  1. C. John Stutz says:

    Thank your for the forecast. 1st builder site I’ve run across where the builder talks to the public about more general topics. Bravo!

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