A national apartment report just released statistics stating that the Metro Milwaukee apartment rental prices have increased 7% in the last year. We have the third highest increase in the United States in October. The Metro Milwaukee apartment rental price average has gone from $887 per month to $951 per month. This is just the average. I know some of the newer apartments are now going for $1500-$1800 and even as high as $2400 per month. (Not including additional expenses) What are you waiting for? Home purchases have been going up an average of 10% per year for the last 3 years. Get tax deductions and benefit from the increases in property value. Stop wasting your money every month with apartment payments. If you want to purchase a duplex you will benefit even more. Take advantage of tax deductions and increasing property value while also collecting in on increasing rent prices. With an owner occupied duplex you can still purchase with as little as a 3.5% down payment. 1. Milwaukee area rent is up 7% 2. Purchase a home with as little as 1% down payment* 3. Purchase a duplex with as little as 3.5% down payment* 4. Build equity, peace of mind, and hedge against inflation by knowing your month payments will not go up. *(2) Payment on a $150,000 home with 1% down payment, interest rate of 3.75%, 30 year fixed rate. Based on qualified buyer (loan program with Providence lending) YOUR PAYMENT would be about $672.00 plus property taxes and insurance *(3) Payment on a $150,000 duplex with 3.5% down, interest of 3.75% on a 30 year fixed rate. Based on a qualified buyer (FHA loan program) YOUR PAYMENT would be $675.00 plus property taxes, PMI, and property insurance. All that while you would also be collecting an average rent from the rented unit of $700-950 per month. So like I said what are you waiting for…..interest rates to go up? Contact a Milwaukee Real Estate Agent who understands the market, call Bob Arnold. Please feel free to contact me by email, text or call with any questions or how I can help you. I am more than glad to meet and discuss some option and put together a plan to move forward.
Milwaukee Area Real Estate Market Update While we experiencing a strong real estate market in the metro Milwaukee area but we can’t forget that it is still based on supply and demand. One of the biggest factors effecting price in the Metro Milwaukee market is the inventory. New listings in the Milwaukee region decreased 10.4 percent down to 2,288 listings July. Pending sales were also down 36.3 percent to only 1,150. Inventory levels fell 10.2 percent to 6,906 units, while the median sale price increased 1.3% in July. Making this even more of a seller’s market. In most areas the $250K and under market is extremely active. Some Milwaukee real estate areas are experiencing the problem of little or no homes available in this price range. Go under $150K and nice homes are being sold in less than a week with multiple offers. For example, I was looking for some homes in Thiensville the other day for a buyer I am working with to find 8 homes on the market and 7 of the 8 had offers. Our four county area, Milwaukee, Ozaukee, Waukesha and Washington are a price sensitive market with very different buyers and number of buyers in different price ranges. For example: Once we get over the 600K range our inventory increases and prices actually seem to be dropping or we are seeing price reductions. Now updated or new construction are always going to sell quickly. Pockets like Whitefish Bay and Shorewood are doing great in any price range. What's going to happen with the interest rates, up or down? If I only had that magical crystal ball. We are seeing them fluctuate in the 3`s. Are we living on borrowed time? It depends on who, what bank, economist or media you want to listen to. World chaos and poor employment numbers in the U.S. are keeping them down. What we do know is prices are going up at an average of 10% plus per year. The house now priced at $250K will be $275K next year, yes the same house that was $200K 2 years ago! I know our incomes are not going up that fast. You may want to really think about a home purchase game plan. I have not had any buyers come back to me in the last 3 years saying "Bob I wish I would have waited to purchase a home". Instead most if not all say I wish we would have purchased sooner! Here is another one of my great testimonials: 7/06/16 5 of 5 Stars Buyer’s Agent Worked with Bob shortly after we relocated to the area. Bob took the information we provided and gave us a good sampling of what was available in a fast moving market. Bob was very flexible in his schedule to accommodate our schedule. Once we found our home, Bob acted quickly to bring our offer to the table and get accepted. Bob also worked closely with us in making offer conditions and following up with some additional matters in the home inspection. Bob also had connected us with an excellent home inspector who provided a very detailed report as well as a Real estate attorney that met our needs. Bob made the home search and overall home buying experience stress free and enjoyable.
While it has been quite an eventful summer real estate market, our fall market might be a little tougher for buyers with limited inventory, but some good deals. Our inventory level overall has gone down. While some areas do remain very strong, such as West Allis with over 356 homes available (82 have offers and 81 of the homes are under $100,000). Wauwatosa only has 217 homes on the market, 55 with offers and only 3 under $100,000. Some of the communities that are the worst for buyer right now include Greendale, with only 45 homes currently on the market (10 with offers) and St Francis with only 31 homes on the market (6 with offers). There are specific price ranges in a lot of the markets that really limit purchasing options. Now let’s include the fall/winter market factor coming up. What does this all mean? Don’t panic or abandon your search. There will always be new listings coming on the market. Some you may have to move faster than others. However you may keep in mind that two variables will more than likely happen. Home prices will continue to go up as well interest rates. This will affect your buying power. Our spring market usually starts right after the first of the year with new anxious buyers. This will increase the buyer competition. New listings after the first of the year, as always, will look at pushing the prices up in that spring. The best metro Milwaukee home purchase buys will be in the next 3 months. Sellers that have had listing on the market want to sell before the winter to eliminate holding costs. If you would like more information or would like to meet and discuss the Milwaukee real estate market, I am more than happy to do so. Call me anytime!