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Housing Shortage and the Seller’s Market

Reducing Loan Costs, Housing Shortage, and the Green Bay Seller’s Market

The last couple of years in real estate has been a seller’s market, meaning real estate conditions favor sellers more than buyers. The seller’s market in the Green Bay, Wisconsin area has favored sellers so much that it is not uncommon to have numerous offers on a property and the offers are so competitive that they often don’t include contingencies that were commonplace in the past. Home buyers are often electing to forgo a home inspection in order to make their offers seem more attractive to the seller and real estate agents have seen more cash offers, less home sale contingencies as well as waivers of the appraisal contingency. In addition, desirable homes and real estate in the Green Bay area have frequently been seeing offer prices that exceed the listing price. If buyers are expecting intense competition, then they are doing whatever they can to make their offers more appealing.

In the first quarter of 2024 the Green Bay area seller’s market isn’t quite the frenzy that it was at its peak, however Green Bay firmly remains a seller’s market. In Northeast Wisconsin in January 2024 there were 13.9% more closed sales as compared to the previous year and the median price was 13% higher (median price in Northeast Wisconsin was $259,900). The 30-year fixed mortgage rate was at 6.64%. A large contributing factor to creating the local seller’s market is low inventory of homes for sale – basically a housing shortage in Green Bay, Wisconsin. Without action Green Bay area statistics on populations, real estate, and the economy predict that the housing shortage will persist into the future. In fact, experts predict that Wisconsin needs an estimated 200,000 new housing units by 2030 to meet demands. Resolving or at least increasing the number of available and affordable housing has been on the agenda of local lawmakers as well as interested advocacy groups for years.

This past summer Wisconsin state Governor Evers signed the 2023-2025 biennial budget which included a $525 million investment in expanding access to affordable housing. This is one of the largest investments in workforce housing in state history. A large portion of this money will be allocated to making home loans and mortgages more affordable and lowering interest rates. $50 million will also go to WHEDA (Wisconsin Housing and Economic Development Authority) to be used for repair and renovations of current homes for low to moderate income households. The first round of funding for these programs is scheduled to be complete by July of 2024. All this is great news for potential home buyers and in particular first-time home buyers. Currently mortgage interest rates have increased from the all-time lows in 2020 which means that buyers aren’t able to afford as large of a mortgage. The creation of new affordable housing units combined with efforts to reduce loan costs are in the buyer’s favor.

The loan officers at Executive Mortgage in Green Bay, Wisconsin are in prime position to guide prospective home buyers and plan out their course of action when considering when to purchase a home and what an affordable home price is. Talking to a mortgage specialist is often the first step to realizing a real estate purchase. Executive Mortgage is a licensed mortgage broker in the state of Wisconsin and has been serving the Green Bay, De Pere, and Northeast Wisconsin area since 1996 – not many mortgage brokerages have been around that long! Executive Mortgage prides itself on finding the best solutions and mortgage products for buyers and the mortgage officers are available when bankers aren’t. Locally owned and operated with a fantastic reputation means buyers get the attention they deserve. Contact Executive Mortgage and start a conversation today!