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Milwaukee, WI: Real Estate Market & Trends 2016

Published on Monday - November 07, 2016

The Milwaukee real estate market sizzled in the first-half of 2016. Home sales and values continued to climb during the second quarter, with both home prices and appreciation rates for Milwaukee real estate up from a year ago. In the same light, home affordability for the Milwaukee housing market remained among the lowest, with new housing construction and the local economy improving and on an upward trend. That said, with a red-hot second quarter under its belt, the Milwaukee real estate market is expected to see huge gains in the second-half of 2016.

Milwaukee, WI Real Estate Market Statistics:

Milwaukee real estate investments

Milwaukee real estate investing continues to reap positive rewards for investors and homebuyers. Although below the national average, the second quarter saw one-year and three-year appreciation rates of 1.4 percent and 10.2 percent for Milwaukee real estate, in comparison to the national average of 4.9 percent and 17.8 percent. Price appreciation and principle payments in the last three years have boosted total equity growth since the recession. That said, gains in the last three years have extended the trend of positive price growth after the recession. For those considering Milwaukee real estate investments, the following spotlights appreciation gains in previous years:

  • Homes purchased in the Milwaukee, WI housing market one year ago have appreciated, on average, by $6,846. The national average was $14,963 over the same period.
  • Homes purchased in the Milwaukee, WI housing market three years ago have appreciated, on average, by $32,279. The national average was $46,878 over the same period.
  • Homes purchased in the Milwaukee, WI housing market five years ago have appreciated, on average, by $56,161. The national average was $82,353 over the same period.
  • Homes purchased in the Milwaukee, WI housing market seven years ago have appreciated, on average, by $59,532. The national average was $77,054 over the same period.
  • Homes purchased in the Milwaukee, WI housing market nine years ago have appreciated, on average, by $29,244. The national average was $31,126 over the same period.

Total equity gains for Milwaukee real estate remained competitive during the second quarter of 2016. Homes purchased one year earned $6,846 in total equity, compared to the national average of $14,963. Despite lower than the rest of the country, the Milwaukee real estate market continues to earn moderate returns as shown from the last nine years. The only year total equity gains for Milwaukee real estate surpassed the national average was in 2005, the national price peak. That year saw homes in Milwaukee earn $51,444 in total equity, compared to the rest of the country of $34,380.

Foreclosures remain another important factor when assessing real estate markets. According to RealtyTrac, there were 2,691 properties in Milwaukee in some stage of foreclosures during the month of September. Although it seems high, the number of foreclosed properties in Milwaukee was 64 percent lower than the previous month and 61 percent lower than the previous year. Also, bank owned properties in Milwaukee went down in the second quarter. The number of REO properties fell 14.1 percent compared to last month and 5.2 percent from last year. For investing purposes, the Milwaukee real estate market continues to offer plentiful of opportunities for investors.

Milwaukee, WI Real Estate Market Summary:

Milwaukee real estate investing

  • Current Median Home Price: $230,000
  • 1-Year Appreciation Rate: 1.4%
  • 3-Year Appreciation Rate: 10.2%
  • Unemployment Rate: 4.9%
  • 1-Year Job Growth Rate: 1.1%
  • Population: 599,164
  • Median Household Income: $43,385

Milwaukee, WI Real Estate Market (2016) — Q2 Updates:

Milwaukee housing market

The Milwaukee real estate market continues to make significant strides since the recession. The median home price for Milwaukee real estate was $230,000 during the second quarter, compared to the national average of $239,167. The second quarter also saw one-year and three-year appreciation rates of 1.4 percent and 10.2 percent respectively. Although experience strong gains, the Milwaukee real estate market continues to fall below the national average in terms of home prices and appreciation.

Home affordability remained Milwaukee’s strong suit in Q2. Homeowners paid 9.6 percent of their income to mortgage payments, whereas the national average paid 15.8 percent. That’s an improvement from past years, as Milwaukee homeowners have traditionally paid 12.5 percent. All in all, the Milwaukee housing market remains one of the more affordable in the country. One factor that could boost affordability is new housing construction. The level of construction in Milwaukee during the second quarter reached 36.9 percent above the long-term average, while single-family housing permits soared to 23.1 percent, up from the national average of 10.6 percent.

The local economy is another factor influencing the Milwaukee real estate market. Although the second quarter saw improvements in both unemployment and one-year job-growth, both fell short of the national average. While the unemployment rate for Milwaukee was identical to the rest of the country at 4.9 percent, new jobs in Milwaukee grew at a rate of 1.1 percent, as opposed to the rest of the country at 1.9 percent. The good news is, employment has held up and is on an upward trend. In addition, unemployment in Milwaukee is comparable to the national average and improving. These factors should pay huge dividends down the line for the Milwaukee real estate market.

For Milwaukee real estate investors and homeowners, foreclosures will be another aspect to pay attention to in the second-half. The month of September saw 2,691 homes in Milwaukee in some stage of foreclosure, which could signify a looming real estate investment boom. On the other hand, the percentage of foreclosures in Milwaukee continues to decrease, which could also signal that investing opportunities are being snatched up as record pace.

Moving forward, the Milwaukee real estate market is expected to see higher price growth in the next 12 months, compared to other U.S. cities. According to the National Association of Realtors (NAR), the state of Wisconsin is forecasted to experience higher price in the second-half, with prices rising 3.8 percent compared to the national average of 3.6 percent. Although Milwaukee real estate continues to fall short in comparison to the national average in terms of home prices and equity gains, the second-half of 2016 should see that marginal difference balance out.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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