What you need to know about current Real Estate trends in Brown County
There’s a lot happening in the Real Estate market right now, with big shifts and changes continuing to affect buyers and sellers in Brown County and beyond. One of the most important changes here and across the country is that the biggest generational segment of buyers in 2022 was Millennials – but in 2023, that has shifted to Baby Boomers, who now make up 53% of the market. This change is highly impacting the housing market.
Why is this happening? The pandemic and interest rates are two major factors.
The pandemic made many people realize how fleeting time is…Especially Baby Boomers. Once people began feeling safe again, many Boomers decided that now is literally the time to make a move. This along with the largest transfer of wealth in the history of history is a strong recipe for some very decisive lifestyle and home moves. We are seeing it big time in our business.
Interest rates come into significant play here too and are affecting the market in different ways for different generations. Millennials are finding it hard to compete with Boomers. Boomers are not as concerned with interest rates as many have cash they may choose to utilize and are not as affected by budget constraints.
What does this mean to our market? The Boomers who are currently dominating the market are not downsizing, but rather “right-sizing” – which means they are choosing to move to properties that better suit their current lifestyles. Sometimes that means purchasing a larger home, sometimes a smaller home and sometimes multiple homes. It also means they are listing their current home which will help increase inventory levels (which we desperately need).
Regarding the interest rates…The recent banking debacle has tempered the rise of interest rates. Speaking of that debacle…Local banks appear to be on solid footing. I am sure it is likely all banks will be in for tighter regulations. As I have mentioned before, unless something catastrophic happens, it’s unlikely that interest rates will ever be as low as they were in the pandemic. Many buyers are recalibrating to the new normal of high 5’s to low 6’s.
In terms of market stats, the market in Brown County is down 28% compared to the same period last year. This is largely due to the fact that there is very little inventory available. In fact, there is only a 2 month supply of inventory, while a healthy market has around 6 months of inventory. This means that we are currently in an extreme seller’s market, and properties are selling fast. We are back to many multiple offer situations. The luxury market ($50,000) is up.
The Real Estate market is ever-shifting and changing – but for now, the Boomers are steering the ship (my observation is they will be for some time). Reach out today – no matter what generation you are! One of our superpowers is being exquisitely in-tune with all the market nuances. We are in it all day, every day and we love it. We are here to help you!