Everywhere we look, there is doom and gloom when it comes to housing market predictions. Pick up any major newspaper and you’ll see it.
But in Brown County, we just haven’t experienced a downturn. There could certainly be a “leveling off” of the housing market, in the coming months – but for now, things are still rockin’ and rollin’. Let’s dig into the data and explore what we’re actually seeing in the market, right now.
State of the Housing Market in Brown County
As you can see in this graphic, overall market prices in Brown County are up from the same time last year. Average sale prices and volume are also up. You’ll see that sales are down, which is due to there being fewer houses available to sell.
Why is inventory such a persistent problem? Well, new construction costs are very high. Many people aren’t selling their houses, even though prices are high, because they don’t have an affordable new house to go into. We’re also seeing a big influx of millennial buyers entering the housing market for the first time.
Interest rates are climbing… but they are still historically low. We are starting to see this affect affordability, especially when it comes to buyers who are price conscious and shopping for homes under $300,000. This will certainly keep some people from entering the market and cause demand to level off.
However, we don’t see this happening when it comes to homes priced over $500,000, since many of those buyers are cash buyers and they aren’t getting priced out because of interest rates.
Inflation continues to be a wild card. We just don’t know how that is going to affect the local housing market. So far, there hasn’t been a big effect – as you can see by those numbers!
Here’s what we predict for the rest of 2022 in Brown County: We believe that it will remain a strong sellers’ market. Our predictions for 2023 and beyond will depend on how inflation goes.
Advice for Home Buyers and Sellers in Brown County
If you’re looking to buy a home, work with an experienced agent who is dialed into the local market. A good agent will also help you position your offer in such a way that makes you very attractive to the seller.
Great agents also have connections and know about houses that are coming up for sale before they are even listed. We’re seeing more and more sellers who wish to avoid a frenzy of showings and offers, and willing to sell in a “pocket listing.” This is a win-win for buyers AND sellers – but you need to work with a savvy, well-connected agent to even know about these opportunities!
If you’re trying to sell your house right now, it’s very tempting to think you can do it by yourself and avoid working with an agent. Please don’t make this mistake. A great listing agent will know how to leverage multiple offers and help you pick the most stable one. Working with an experienced team will also mean your house will be staged for success, which will greatly enhance your ability to receive an exciting offer.
Finally, if you’re selling your house to take advantage of the high values but aren’t sure about buying a new home at the same time, we can help you brainstorm solutions. Many of our clients choose to rent temporarily as they wait for more inventory to enter the market.
When Will Home Prices Decrease in Brown County?
We don’t see home prices going down quickly. We’ve seen double digit increases for a while now, and it’s starting to slow down into single digit increases. This slow leveling off is actually a very good thing – it means the market is correcting itself. Most importantly, we believe the market will remain strong and stable for 2022.
Buying or selling a home is a fraught and emotional time. If you’re still weighing your options and aren’t sure what to do, please reach out! We would love to talk through your situation and help guide you in the right direction for you and your family.