First I believe that 2013 real estate market in the Norhtern WI counties of Vilas and Oneida and/or the surrounding Eagle River WI area are going to be better than 2012; which ended up exceeding most people’s expectations, for the below reasons:
· Interest Rates will remain lowJ
· Inventory will remain low too on average local MLS ( multiple Listing Services ) are down about 22% and there is a 48 month supply of homes out there
· Home prices may see some gains – minimal – but gains. Corporate is estimating 2-3%
· Home Equity Lines of credit will be back
· There will be LESS distressed home sales – which is great for Sellers!
· The Ability to Pay Rule will take in effect in 2013: http://www.realestate.com/advice/feds-pass-ability-to-pay-mortgage-rule-62935/
· Live In’s have been a big part of the market and since they have been inactive for the last 3 years there is a “pent up” amount of Buyers here that may want to finally move out on their own. It is estimated approximately 26 million people have been waiting to purchase or saving.
· New Household formations had decreased to about 500k last year and generally there are about 1.4 million/year so we are hoping to see an increase in this market segment as well.
· New construction is coming back and new home sales were up 15% in 2012. Also, building permits are up!
· The Mortgage Interest Deduction was not really affected by the “fiscal cliff”
· Consumer confidence is rising
· Finally, the one market the experts do see still suffering a bit will be the luxury market… so we need to treat every buyer in this segment like gold…
I hope this gives you some idea of what we see coming in the Northern Wi counties of Vilas and Oneida! As always call me with any questions and I look forward to helping you MOVE this year!