There are some national experts that are talking about the possibility of a new housing boom coming in the near future. That seems like a pretty bold statement at this point in time, but I can see why they would come to that conclusion.
With the record low interest rates and overall record affordability of housing today, there is a lot of demand for housing. Also, with the lack of housing available to buyers looking today has begun to push up selling prices. Although, if this trend continues, more would be sellers will catch on and consider entering the sellers market again.
The attached graphic shows the current market activity compared to the same time last year. All the numbers support a big improvement in the housing market.
The activity in Western WI has been a little behind the general Twin Cities Market, but as you can see below the Hudson market is still showing good numbers...
Average Sales Price is up 2.8% to $224,388
Sales price compared to list price is up 0.9% to 92.2%
Days on market down 30.9% to 129 days
Months supply on homes available down 28.7% to 7.3 months
Number of homes available down 18.7% to 252 homes
New listings are down 5.8% to 49 new homes
New pending sales are up 25.8% to 39 offers submitted
*based on MLS data for last month
The housing market may have overcorrected the last few years and dropped well below market value, and the new "boom" they are referring to may be the market just correcting some of the extensive price drops that occured the last few years.
As far as a new housing boom, that may not be the best option for housing. A moderate growth would be better so the market can avoid future spooks! Yes, I used a Holiday term on purpose! Happy Holidays!!
Brian Webb is a proud Homes for Heroes affiliate for St. Croix Valley. He represents clients in Hudson, River Falls, Stillwater, Woodbury, Oakdale, Cottage Grove, and surrounding Twin Cities Areas! He assists with buying, selling, investing, and property management of your home! He offers free advice and consulting services, contact him at HudsonRiverFallsHomes.com