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Charlie Wills

Team Leader, CRS, CLHMS
Mobile: 608-620-4004, Other: 262-573-1479
charlie@charliewills.team
https://charliewills.firstweber.com

Hi There!

With a strong economy and low unemployment, people are moving into new and exciting possibilities for 2020, including dream lifestyles. If you're thinking of selling, let Me provide you with a complete and complimentary home valuation and market analysis.

Buying or selling, contact Me for trusted guidance every step of the way.

WISCONSIN’S REAL ESTATE OUTLOOK

PLEASE NOTE: Market conditions can change rapidly across the state. Contact Charlie Wills for the latest updates.

A Strong December Pulls 2019 Sales Even with 2018 as Prices Continue to Rise

SALES

Wisconsin closed 2019 on a high note in December with both home sales and median prices up by double digits on an annualized basis. Home sales increased 14.8 percent between December 2018 and December 2019. This strong performance for December pulled annual sales nearly even with last year, with 2019 home sales just 0.1 percent below those of 2018. It was a strong finish to the year putting us over 82,000 sales for the fourth straight year. However, the supply side problems will likely persist in 2020 as the three primary sources of supply show few signs of increasing supply.

INVENTORY

While new listings of existing homes were only down slightly in December, total listings actually fell nearly 12 percent over the last year. In the absence of an economic slowdown that softens demand, these supply trends will continue to drive prices up at well above the rate of inflation.

AFFORDABILITY

Given continued weakness in inventories, media prices rose 10.1 percent on a year to date basis to $197,500 for all of 2019. Comparing 2019 with the previous year, the median price increased 7.3 percent. This is the highest annual median price recorded since 2007.

BUYERS: The silver lining has been the significant reduction in mortgage rates over the last year which has served to keep Wisconsin housing affordable. It has more than countered the increase in home prices, so housing affordability has actually improved slightly.

The 30 year fixed rate mortgage has remained below 4 percent since June of last year, and it stood at 3.72 percent in December. That compares to 4.64 percent in December 2018.

These are great rates, and the winter is actually a good time to buy since lower demand during these months could soften prices.

SELLERS: Wisconsin has been consistently classified as a seller's market since 2017.

Michael Theo

WRA President & CEO

READ MORE

Source: Wisconsin REALTORS Association, December 2019 Home Sales Report, January 20, 2020.

2020 HOUSING MARKET PREDICTIONS: A Snapshot!

Photo Credit: RISMedia

HOME BUILDING

Snapshot: Although homebuilders maintain optimism, buyer demand is stronger, and analysts are divided on whether inventory is meaningfully rising. According to Census data, construction in November spiked which is an encouraging indicator.

HOME PRICES

Snapshot: After a cooling off period, home prices reignited in 2019 and are expected to further increase in 2020. At most, they are predicted to rise 3.6 percent. At least, they are predicted to rise 0.8 percent. From January – November 2019, the median price rose 3.18 percent nationally, according to data from Homesnap.

HOME SALES

Snapshot: Despite benefiting from low mortgage rates, buyers continue to grapple with limited options, contributing to muted sales in 2019, a challenge continuing into 2020, experts predict.

MORTGAGE RATES

Snapshot: Analysts anticipate continued lows in 2020. At the NAR Forecast Summit, economists expected a favorable 30 year fixed mortgage in 2020, at 3.8 percent. According to Freddie Mac, as of December 2019, the average 30 year fixed mortgage rate was 3.73 percent.

ODDS OF A RECESSION

Snapshot: Throughout much of 2018 and 2019, analysts debated the probability of a recession, either in 2020 or 2021. The consensus at the NAR Forecast Summit was at best, no recession, and at worst, a 29 percent chance.

Source: RISMedia, 2020 Housing Market Predictions: A Snapshot, by RISMedia Staff, January 3, 2020.

MORTGAGE POINTS: HOW THEY CAN CUT YOUR INTEREST COSTS

WHAT ARE MORTGAGE POINTS?

Mortgage rates are near historic lows these day, but there's a way to make them even lower. It's called buying points, essentially paying money upfront to the lender to get a better rate for the life of the loan. It may or may not be the best deal, depending on your circumstances. When you pay interest on the loan in advance, you'll be able to lock in a lower, discounted rate. The more points you purchase, the more you can save on your loan. In most cases, one point gets you 0.25 percent off the mortgage rate and costs the borrower 1 percent of the total mortgage amount.

WHAT ARE DISCOUNT POINTS?

It's another term for mortgage points. Points are actually prepaid interest on the mortgage loan. Borrowers usually can buy as many points as they want up to the lender's limit. Every mortgage lender has its own price structure, so how much you can lower your rate by paying points depends on the lender, the type of loan, and the mortgage market conditions at the time of closing.

WHAT ARE ORIGINATION POINTS?

Origination points cover the lender's cost of processing the loan. They're a way to pay closing costs, and they're negotiable. The number of origination points lenders charge varies, so be sure to ask when you are shopping for a mortgage lender. Lenders may use different terms for points such as "loan discounts". Ask your lender for clarification if you're unsure. Origination points do not lower the rate of your loan, but they are a way to wrap closing costs into your loan without having to come up with the cash when the mortgage is issued. However, you'll have to pay interest on these costs over the life of the loan.

Buying points may or may not be right for your situation, and the process can be confusing. That's why it's crucial that you understand what mortgage points are and how to calculate whether it would be better to invest that point money. Consult a tax professional with questions about your situation and about deductibility.

Source: RISMedia, Home Spun Wisdom, Mortgage Points and How They can Cut Your Interest Costs, by Sarah Li Cain, January 3, 2020.

CLASSIC BLUE

PANTONE'S 2020 COLOR OF THE YEAR

For the past 20 years, Pantone has chosen the Color of the Year to guide design trends as we dive into the future. And the official shade of the year for 2020 is CLASSIC BLUE (19-4052).

Photo Credit: Pantone
from RISMedia

According to Pantone, the color is meant to instill "calm, confidence and connection," as well as "highlight our desire for a dependable and stable foundation on which to build as we cross the threshold into a new era."

Source: RISMedia's Housecall, Classic Blue: Pantone's 2020 Color of the Year, by Zoe Eisenberg, December 15, 2019.

3 Easy Tips for Home Staging During Winter

STAGING A HOME BEFORE A SALE CAN INCREASE THE AMOUNT OF AN OFFER BY 1 TO 5 PERCENT

	Clear the Walkway
Nothing is more important than the safety of potential homebuyers that may be looking at your property. Be sure to clear any walkways that lead to a home's entrance and be generous with the amount of salt you put down on all walkways and steps.

	Keep it Toasty Inside
Right before showings, crank up the heat a bit. A toasty home is all the more inviting to folks coming in from freezing temperatures.

	Be Aware of Odors
During the winter, it's normal to bring musty smells into the home, from leaving wet boots near entrances to the pet tracking snow and mud throughout the property. Aroma appeal can be just as important as curb appeal, so introduce fresh smells like cinnamon or lavender and avoid artificial scents if possible.

Sources: RISMedia, 3 Tips for Staging a Home During Winter, by Jameson Doris, January 5, 2020.

National Association of REALTORS.

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