Green Bay, the housing market in Wisconsin is currently facing a number of mixed reactions from buyers and sellers alike. The market received some promising remarks but has also made some complexities along the way. As homes experience progressive growth when it comes to sales and a lower rate in terms of interest, price pressures still impact the affordability of the listings.
A slight decline in home sales last summer
It could be recalled that just this summer of May 2024, Green Bay experienced a slight decline in its home sales. According to the Wisconsin Realtors Association (WRA), a total of 270 homes were sold in May 2023, this took a noticeable decline in terms of sales as compared to May of this year which recorded a number of 265 sales. But there’s no need to be discouraged by this news, as the year-round sales seem to be more reputable than its summer count. In the first five months of the year, Brown County was able to sell a total of 1,008 existing homes. This marks a 1.8% increase as compared to last year’s record.
This marks a great indicator of Green Bay’s progress. Through the years, Green Bay has been challenged and negatively affected by its low inventory which was matched with a high interest rate. This time, Green Bay is finally starting to recover. Wisconsin itself has experienced a 16% increase in their overall home sales this 2024 which reflects how their market’s improvement. If their current market condition continues to prosper, it is rest assured that buyers and sellers will surely benefit mutually from it.
How Interest Rate Impact Sales
After a few months of having high interest rates, the average mortgage range has finally dipped down to 7% which opens the door for bigger chances and opportunities for buyers to enjoy a break from higher interests. It is no secret that high interest rates are truly one of the many obstacles a buyer needs to consider when buying a property, these could impact their decision-making largely as they affect payments such as monthly mortgage or even long-term payments. For some, 7% is not a significant number as it does not really pose a huge difference from the previous rate. However, if you are looking at a 20-30-year mortgage, these numbers could equate to having a very big savings.
Having lower interest rates is surely pulling customers back into business, however, high rates and inflation could still greatly impact a customer’s satisfaction as it could lead to buyers thinking their decision twice. While a 7% interest rate is lower than it used to be for the previous years, it is still quite high compared to the low records that arose during the pandemic. Thus, it is still far from returning to its most favorable conditions.
Rising Inventory Means Rising Buyers
Another favorable condition that the market achieved last summer was the higher inventory which is quite an important factor in shaping Green Bay. It could be remembered that last year, Green Bay had suffered from a lower inventory which created a barrier for Green Bay to get customers. The low inventory paved the way for greater competitors and rising market prices. However, this year is different, buyers now have more options so the balance between the buyers’ and the sellers’ satisfaction is both met and balanced accordingly. According to WRA’s record for this year, the number of homes being sold increased to 11%, which was made possible because a lot of options are now being presented to customers.
The rise in inventory means a rise in customers as well– because of this, customers are now able to select the option that works best for them, it also lessens the possibility of bidding competition among other customers which eventually also lessens the rise in market prices. Buyers now have the power to choose and select the best property that suits them. From here, they can evaluate their options and stabilize possible price growth.
An Overview of Green Bay’s Current Situation
Green Bay is currently in a position where they are balancing both buyers’ and sellers’ satisfaction. While this situation may seem unique, while buyers enjoy lower rates and rising choices, buyers are still benefiting from strong prices– the question is until when? As Green Bay faces the remaining months of the year, buyers and sellers alike must always stay informed and adapt to the changes that could happen from time to time.
