The same factors that catalyzed widespread market recovery in 2012 and 2013 are likely to continue in 2014, though perhaps at a more moderate pace. That's not a bad thing, since the market is returning to a stable, healthy state. Potential trends to watch for in 2014 include increased seller activity, more new construction and fewer foreclosures on the market. Inventory is another metric to watch this year.
New Listings in the Milwaukee region decreased 1.7 percent to 1,656. Pending Sales were down 35.7 percent to 672. Inventory levels shrank 6.5 percent to 6,385 units.
Prices marched higher. The Median Sales Price increased 10.6 percent to $157,000. Days on Market was down 12.1 percent to 94 days. Absorption rates improved as Months Supply of Inventory was down 10.6 percent to 4.8 months.
Given how far the market has come, it's a good time for folks to reassess their situation. Many who were hesitant to sell in recent years may find themselves in a completely different position. Getting a fresh comparative market analysis might be a good idea. Interest rates remain attractive and should remain below their long-term average, but they are expected to creep higher in 2014. Politicians are gearing up for midterm elections, so pay close attention to campaign messaging as relates to real estate or mortgage financing. Job growth is still fundamental and is likely to dominate this election cycle.
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