State of the Market – August 2016

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Joe HorningA letter from Joseph A. Horning, President of Shorewest, REALTORS®

Entering the third quarter of the year, we are pleased to report that the market is healthy and thriving. According to the latest report from the Wisconsin REALTORS® Association, the state housing market has continued its growth trend with both home sales and median prices increasing over numbers from last year. Between May of 2015 and May of 2016, the Southeast region in Wisconsin had the strongest sales growth with a 6.6 percent increase.

Lawrence Yun, National Association of REALTORS® (NAR) chief economist said, “This spring’s sustained period of ultra-low mortgage rates has certainly been a worthy incentive to buy a home, but the primary driver in the increase in sales is that more homeowners are realizing the equity they’ve accumulated in recent years and finally deciding to trade-up or downsize.”

Equity is a driving force for families that are thinking about moving. Equity is the difference between the value of the assets and the cost of the liabilities of something owned. For example, if someone owns a home worth $150,000 but owes $50,000 on a loan against that home, the home represents $100,000 equity. Many families have equity built up in their current home and are using it towards their next homes. If you are not sure about how much equity you have accrued, speak to one of our sales associates today. The market is still low in inventory and more homes are needed to satisfy buyer demands.

Some potential buyers may have another reason as to why they are reluctant to start their homeownership journey. According to NAR’s newest survey, low homeownership rates among young adults can be contributed to repaying student debt. However this should not be a deterrent as the opportunity to refinance their loans to current rates reduces their payments. In addition, mortgage underwriting guidelines related to student debt have been standardized and should not impair homeownership opportunities.

Shorewest’s new; state-of-the-art South Metro sales office on the corner of S. 68thStreet and W. Layton Ave. in Greenfield is nearing completion. The iconic Shorewest sign has been placed and excitement is building. The new office will be unveiled by September, 2016.

When it is time to make a move – locally or anywhere in the world – we appreciate the opportunity to serve as your trusted advisor.

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Categories: First Time Home Buyers, Home Buying, Home Selling, Homeowner, Mortgage, Quarterly Newsletter, Real Estate News, Upcoming Events

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