Real Estate Market Overview & Highlights-August 2023

[Sonya Mays]

WISCONSIN MARKET

According to the Wisconsin Realtors Association (WRA) Wisconsin Housing Stats, August 2023 report, there were less sales and higher prices compared to the same time last year.

The median sales price was $300,000, an increase of +10%, while home sales declined over -18%.

In January, the median price was $250,000, and in July rose to the current median price of $300,000.

Mortgage interest rates seemed to be "moving in the wrong direction", according to Michael Theo, President and CEO of the Wisconsin Realtors Association. He reported that the 30-year fixed rate went from 5.2% last year to 7.1% this year in August, which is presenting more challenges for some first-time buyers to purchase.

MILWAUKEE MARKET

In Milwaukee, there were 928 reported sales in the month of August, which is almost double from January when there were only 502 reported sales, according to WRA's report.

New listings increased by +7.9% in August, but closed sales were down -18.6%.

The median sales price in the 4-county metro area was $335,000.

Average days on market increased by +12.5% to 18 DOM.

Housing inventory saw a slight increase from 1.7 to 1.8 months of inventory in August, according to the Metro MLS Market Overview report, which covers Milwaukee, Ozaukee, Washington and Waukesha counties in Southeastern Wisconsin.

Luxury home sales, between $700k-$1M, saw the greatest increase in closed sales with +7.1% annual change.

On the other end of the spectrum, properties priced between the $100k-$200k range dropped -42.6% in closed sales, compared to last year.

COMMERCIAL MARKET

Commercial real estate continues to slow its pace in the midst of rising interest rates and tighter lending standards, according to the National Association of Realtors August 2023 Commercial Real Estate Market Insights report.

Office, multifamily and industrial vacancies have increased compared to the same time a year ago, and multifamily rental rates have increased.

The retail sector remained the strongest with the lowest reported vacancy rates year over year.

Multifamily vacancy rates rose 1.3%. Office vacancy rates increased 13.5%.

The retail vacancy rate has remained unchanged over the past year at 4.2%.

RENTAL MARKET

The 1bd and 2bd apartment rental prices have remained the same over the past 6 months, according to Rent.com.

The 3bd apartment rental prices have decreased by -$105 from July.

The most affordable neighborhoods in Milwaukee are Merrill Park and Sherman Park, where 1bd units are $645-$650 on average.

Some landlords have asked what are today's renters looking for in a rental property?

Many renters are looking for an up to date, modern, attractive and clean apartment. As with real estate, updated bathrooms and kitchens increase the value and attract good tenants.

The property should also have good curb appeal. Prospective renters will often drive by the property and check out the area to see if they like the surroundings and overall appeal of the house. It's important to keep things nice and tidy to attract good renters.

Other features that prospective renters consider are relative to the location of the property, such as, is it close to their job, close to schools, close to the freeway or on the bus line for public transportation, are there nearby amenities, grocery stores, restaurants, shopping centers, parks, etc.

These are some of the top items to keep on your checklist when marketing and promoting rental properties.

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