Milwaukee Home Sales

June 2014 home sales were very strong, with title companies and lenders increased in the last couple days of the month. May 2014 home sales had dropped slightly compared to those of the previous May, however, the median home sale prices increased by 3.8% over the same period.

What’s happening in the Milwaukee real estate market? Yes, prices are going up. Yes, lenders are getting more difficult to work with. Yes, great deals are harder to find. Yes, listings are getting multiple offers or selling quickly. Yes, good inventory is limited. Lending changes from the first of the year have been taking their toll with buyers. They have caused a large number of closing deadlines to get pushed back and have even killed deals. Be careful who you use as a lender. It’s not the representative that causes the problems in most cases; it is the lending institutions and their guidelines/underwriting. Sometimes, we don’t even know until the day before or day of closing if the property will close. Working with qualified and established lenders and a realtor to the Milwaukee area are a must. It’s highly recommended to go beyond just getting pre-qualified, but to get pre-approved as well.

Where is the Milwaukee real estate market going? Good question. All it takes is to look at the current market and the trends of the last 6-12 months. Buyers are seeing the changing market and taking advantage of the low interest rates before they rise. Sellers are beginning to benefit from this market, as increasing prices make sense for them to consider selling.

Here are a few simple ownership advantages that are not going away:

1) You are paying for housing whether you rent or own.

2) There are substantial tax benefits to owning.

3) Owning is usually a form of forced savings, especially in an upward market.

4) Owning is a hedge against inflation.

5) Housing is typically the one leveraged investment that is still available.

To expand on the first takeaway, we are finding that a purchase price of $200,000- $250,000 is generally the equivalent of renting, depending of course on the property taxes or condo fees. If there are cost savings, such as a tax saving or increase in value, you may not see that right away, but value is there. That is why it is always a good exercise to do a calculation and compare.

It the cost saving such as tax saving or increase in value you will not see right away.

-          Milwaukee real estate market -- http://move2milwaukee.com/faq/

Realtor to the Milwaukee area -- http://move2milwaukee.com/

Bay View Milwaukee

Bay View Market update. 

Median sales price over the last 5 months up 20%

 Days on market over the last 12 months down 32%

 Median sales price over the last 12 months up 12% 

 Real Estate sales continue to improve in the Bay View area partially because of a lack of listing. The Bay View market lends itself to a very unique opportunity for sellers of almost all price ranges and property conditions, if marketed properly, to have active buyers looking to purchase. I am a market leader with Trulia and Zillow in Bay View as well as the 53207 zip code area and talk with over a dozen buyers weekly. Please call, text  (414.379.1101) or email (northshorehomes@msn.com) me with any questions about your home or area market.

Thank you!

 "Specializing in Results"
Bob Arnold
www.Move2Milwaukee.com
Realty Executives Integrity
414.379.1101 Text/Cell
Please follow me on twitter and facebook
http://twitter.com/Move2Milwaukee
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"JS 3 Year  Realtor of the week"

Metro Milwaukee Market 2014 Market-LOOK OUT 

2013 year end statistics from GMAR showed a 9.9% increase from 2012 in home sales in the 4 county area. Within the metro Milwaukee real estate, home prices have increased an average of $14,492.00 in the 4 county area. As we move forward into 2014 the low inventory level presents an opportunity for potential sellers to jump in the market.

Fewer foreclosures has had an impact on the market with foreclosures down over 40%.Overall. The New Year market is proving to be “balanced,” in contrast to the wild swings we saw over the last decade. Sellers should not assume they will get whatever they ask for, and buyers should know the days of deep discounts are gone. While some of the increase in GDP was due to a buildup in inventories, investors and Fed officials are optimistic that we are entering 2014 with a solid pace of improvement in economic activity.

What is on the horizon for 2014?

1)     We expect single-family home sales and housing starts to be at the highest level since 2007, and expect multifamily transactions and construction to post gains as well.

2)     Inventory will remain tight as price continue to climb.

3)     Interest rates will rise. They predict up to 5% by year end

4)     Lending Guidelines will be changing in 2014. The dept to income ratio will be changing from 55% to 43%. Although some Banks/lenders are still using the Freddie, Fannie and FHA guidelines of rations it is very inconstant.

5)      Lender will be under tight guidelines with buyers being qualified as a QM (qualified mortgage) This went into effect January 1^st.

Bottom line, it is not going to get any easier to get a loan and interest rates will be going up. Now is not the time to be a couch potato or sit on the side lines!!! If you are thinking about purchasing, now is the time to start looking. Call me, text me or email me! If you need help finding a lender, questions on the market or how do I start? Let me help you.

2013 was a great year. 2014 will be just as exciting for our market. In May of 2013 interest rates jumped from 3.5 to 4.5 overnight. Don’t wait for the changes in 2014. As I have continued to say "Beat the curve, be in control". Let me know what I can do to help you with your search. Call or email me any time with question about the market or homes you would like to look at. Feel free to search for h9mes on line at my search site www.M2Mhomesaerch.com

Thank you and please feel free to pass this on to anyone you know that might be looking to purchase.

Sincerely,

Bob Arnold
www.Move2Milwaukee.com
Realty Executives Integrity
414.379.1101 Text/Cell
414.921.0899 Fax
Please follow me on twitter and facebook
                                                          "Specializing in Results"

What is 2014 going to be like in the Milwaukee Real Estate market?

I was at an Economic summit sponsored by Northshore Bank and GMAR this morning. They had 3 professor, one from Whitewater and two from Marquette as well as Northshore Bank reps and GMAR reps with reports for 2013 and upcoming 2014.  All experts in their field on Real Estate from lenders, Foreclosures to valuation and predictions.

I thought some of this might be of interest to you.   

Housing market

Everyone is in agreement that interests will go up and loans will be more difficult. The bond rate has increased/will increase from 1.7 in June of 2013 to 2.8 in 2014, while the new Dodd-Frank lending regulations will make qualifying more difficult and time consuming. The bond rate is a big indicator that we will not see interest rates go back down. The question, how high and when. That will be based on other economic indicators such as unemployment and economy growth. What is going to happen or the effect the ACA will have on the consumer is still a big question. Homes sales increased a total of 10% over all in the 4 county area from 2012 to 2013 with an over all price increase of 7.2%. Foreclosures in our 4 county area were down 30% for 2012 to 2013 are expected to continue over all but some big Banks may see some increases.

 Rental market

They showed stats that the increase in apartment rentals have been strong and growing over the last 5-7 years, but have seen them taper off and expect them stay constant in 2014 and forward. They also said the rental amounts/rates should stay the same and will not increase. Some of the  reason for rental market increased and now tapering off are, renters that could not qualify for purchases from leaving there homes can now purchase as well as Y generation buyers waiting 7-5 years for the market to improve, that have now become active buyers in the market. This will change the rental market.  Other indication in Milwaukee are growth downtown or area job growth, these will also have an effect on the rental market. They did stress 2 areas of strong growth are new construction home and condos. New homes are up 30-40%, while the demand for condos are up with both Baby boomers and Y generation buyers with very little inventory.

2014

Bottom line, while many indicators look good it is to early to tell what 2014 will be like. They do predict sales increasing, inventory staying low, interest rates going up and lending becoming more difficult. What is going to happen with the economy is still in questions and what effect ACA will have with the consumer have insurance prices staying the same or going up and how much and how it will effect there monthly expenses/costs indirectly effect the amount of the debt to income ratio. . They did agree that this will effect first time home buyers less than trade up buyers.  They still said it is a good time to purchase and all agreed the sooner the better. 

As always please feel free to comment or get a hold of me with any questions.

Thanks, 

Bob

northshorehomes@msn.com

FHA lending changes will effect the Market

FHA lending changes will effect your mortgage long term. 
Beginning June 3, 2013, many FHA-insured homeowners will be forced to pay 30 years of MIP. Beat the change.

Data from Inside FHA Lending shows that mortgage bankers funded $233 billion in FHA-insured loans last year, marking a 22 percent increase from the year prior. Recently announced changes, however, may derail that success.
For all FHA borrowers, the Federal Housing Administration has set deadlines for a new mortgage insurance premium schedule; an increase in downpayment minimums; and, new underwriting standards for loans with low credit scores.
All FHA mortgages will be affected.
For more information or how this will effect you purchasing a home or when you get an accpeted offer before June 1st please give me a call or email.
Happy house hunting, Bob

April Update

Bob Arnold says “Don’t Blink!!! Or it might be gone”

 That’s what it feels like in some of the markets. Activity in some areas is as high as, 50-60% active market, with accepted offers more than active listings.  March 12, 2013 GMAR report stated  – While the market is strengthening, it is still too early in the year to say with any confidence that the Milwaukee market will see universal price increases this year. It is still a buyers’ market, but just slightly.
The law of supply and demand would seem to dictate prices should increase soon. With a low supply of homes, stable or increasing demand, historically low interest rates, and positive external factors such as consumer confidence and employment, prices should be pushed upward as buyers outbid one another for a listing. The still very low interest rates make it a market buyer should not pass up. It is not unusual be involved with multiple offers on properties. As busy as the market is we haven’t even hit the peak yet. Buyers are still coming out thinking the spring market is just starting…. Ha Ha!. Warmer weather and pent up demand will create a very busy year.  Remember we have 5-6 years of buyers built up.
Choosing a full service, full time Realtor is especial important in this market. Either selling a home or looking to purchase, an active experienced agent is almost a must and will save you money purchasing and make you more money selling. The offer/negotiating process is just the tip of the iceberg. Home inspections, financing, all play an important part of the buying prices.  Good negotiating skills and experience are still some of the most important assets in a good agent in today’s market.

Thanks,
Bob Arnold

See what others have said………

“Bob was recommended to us from a family friend who could see we were burnt out from our previous realtor and experience. We had looked at about 42 houses in 6 months and found nothing. That is when we decided to change realtors and go with Bob Arnold. We immediately saw a difference! He was willing to listen to exactly what we wanted in a house and did his best to find a match. He always made time to show us houses and was honest if he thought we could find something better. He didn't just want to make a sale but instead wanted to make sure we were happy with our purchase and that spoke volumes! We worked with Bob for about two and a half months and found our dream house. The buying process was easy because we had Bob advocating for us. He negotiated and demonstrated expertise with the process. He still checks in on us to make sure things are going well in the house!”

All I can say is “THANK YOU” for this review, to the buyers I just recently worked with. They were kind enough to publish this review on Zillow for me. I think this sums up my commitment to buyers I work with.

Please feel free to pass this information on to anyone you know thinking of purchasing a home or condo as well as looking to sell property in the near future.