What's happening Now in the Northeast Wisconsin Housing Market - June 15 Update

It’s really hard to do a market update when the market seems to be so unpredictable.

I (Valerie) was all set to sit down and provide a market update for the Oshkosh Wisconsin area and I started reading articles about the Federal Reserves hike in interest rates.  Now this increase doesn’t automatically mean a rise in mortgage interest rates but it’s certainly a factor in the unpredictability we are seeing in the Northeast Wisconsin Housing market.

What have we been seeing?

• Since mid April, agents across the country and within Wisconsin felt something change within the housing market.
• More homes went on the market (Spring Sellers)
• Buyers with interest rate sensitivity stepped back from their searches creating less buyer competition
• Homes that went on the market sat a little longer or those that were in desired price ranges saw less bidders in the multiple offer situations
• Homes sitting longer brought us seeing more price reductions/changes coming across our hot sheets on the MLS.

May data for Oshkosh, Wisconsin:

70 residential homes closed in May 2022

                51 still over asking (ranging from $2000 to $66,000)

In June from June 1 to June 14:

                25 residential homes have closed

                18 of them have been over asking ($2000 to $30,000)

How on earth does that signal a change you ask since such a high percentage of homes are still selling at over asking price?

The information that we have access to for Sold properties is LAGGING information.  Offer/bidding wars and the date that those homes listed on the market took place six (6) weeks ago.  We can only get the information after it’s all taken place. It’s never really current.  We can see trends and patterns in how many other offers are we competing with when we make offers for our buyers or we can see price changes on the daily hot sheet, we can dig deeper to see how long it takes a home to get to accepted offer.

The next few days will be telling about the housing market’s reaction.  As agents we have been told that interest rates have mostly flattened since April, that mortgage rates already accounted for the FED rate hike predictions (meaning we won’t see a drastic impact as it’s already “in there”), and that housing is generally recession proof, especially since the housing market we have right now is vastly different than any other recession period (the low inventory factor.)  We are also being told that every housing specialist or economist is still predicting that homes will RISE in value --- they just don’t all agree on how much.  Homes will not lose value in the scenarios.

We’ll keep monitoring what we are seeing.  Please reach out to our team if you are trying to figure out how to navigate this stuff.  You can still reach your 2022 homebuyer or homeseller goals. We just need to be mindful every step of the way.

Check out my video overview of this update also:

Freedom Team Real Estate Agents serving Appleton, Neenah, Oshkosh, Fond du lac and surrounding areas in Wisconsin. 

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