Now that all of the numbers are in for 2025, I took my annual deep dive into the stats as they compare to last year. I also compare the numbers to 2019 (last ‘normal’ market we have had/also provides a good look at how the market has drastically changed in a very compressed amount of time).
We presented all of the information at our Annual State of the Brown County Real Estate Market on 1/30 at the Mulva Cultural Center along with Troy Steckenbach (Brown County Executive), Nicolet Bank and Kelly Stephens (Parabouek Insurance). It was a fantastic event full of helpful and useful information. If you were not able to attend, here are the highlights.
General Market Update
Comparing 2023 to 2024, the real estate market in our area (and across the country) was pretty similar. Total number of sales were up 1% over year and down 22% FROM 2019. Across the country 2024 saw the fewest amount of sales since 1995. The big take away is that the market year over year is showing stabilization which is a good sign.
We were happy to see prices moderating in 2024. Median list price in 2024 was $340,000 (national average is $420,000). In 2023 it was $315,000 and in 2019 it was $199,000. 2024 was up 8% year over year and up 58% from 2019. Again…The rapid increases are slowing way down which is a very healthy sign. Our market averages 2 to 4% growth in a ‘typical’ year.
It appears we have hit the edge of the affordability curve. Prices moderating is a welcome sign for all.
Our total market volume of dollars sold in Brown came in at $898,423,672 up 7% over last year and up 22% from 2019.
Average days on market is 41 days. Last year was 40 days and 2019 was 53 days.
Houses are still on average selling about 2% over list. A little less than last year. Well priced homes in market ready condition are still receiving multiple offers although not as many. Overpriced homes that are not in market ready condition are lingering on the market.
The median age of a first-time homebuyer is 38 years old (source). Think back to decades ago - families bought their first houses in their early twenties. What a shift! This is a huge stat. The national average of an adult leaving home is now 34. Lots of young adults are living at home to save money. Again the affordability factor.
If that describes you or someone you know, you’re in good company.
New construction starts are up 15% in 2025 at 562. The average cost per square foot in our market is $250 to $1000+. Yes, people are spending that. Again…The acceptance of the realization that it is not going to get cheaper to build. People are pulling the trigger and moving ahead with their plans.
Market Predictions
Looking ahead to 2025, we’re expecting the market to remain steady and active. Barring catastrophic events (like covid and the mortgage crisis) the real estate market moves slowly as it is so enormous and complex. The fact that we are seeing two similar years is important because it shows we are adjusting to the new normal. What is the new normal? Higher home and new construction prices as well as more normal interest rates. Interest rates in the 5% and under range were a reaction to a covid and are not the norm. However, this once in a lifetime event had most people re-finance which saved them significant amounts of money and have them somewhat tied to their current home financially.
The forecast for the new year is more of the same. What could completely change that is if interest rates dip to below 6%. That would likely cause a huge influx of buyers back into the market which would cause prices to escalate at a swift rate due to continued low inventory.
Economists predict that the next 10 years will see high spending. This is because Generation X and Baby Boomers are spending money on experiences and homes, and many are supporting younger generations by helping them buy their first houses. $70 billion is and will be exchanging hands in the next decade. This is the largest exchange of wealth in history. We are seeing tons of cash in the market. Hence the sharp rise in all cash purchases.
Affordability in the Market
A lot of young people ask when is a good time to get into the real estate market with prices where they are at? Will they come down? Are we in for a crash like 2008? Do we wait until interest rates come down?
The answer is…Get into the market when you can afford to. Home prices historically have only gone up each year with very few expectations (the mortgage crisis). Interest rates change…You can always refinance. Marry the house, date the rate. Get into the game when you can to start building wealth.
With regards to moving from your current home. Talking with your excellent Agent helps you decide when that is right for you. There are a lot of different scenarios and we have seen them all. We can be very helpful in sharing perspectives and showing you helpful data.
House inventory is about 13% higher than last year. Getting inventory closer to pre-pandemic levels is helpful for affordability. This is key to a more balanced market which helps everyone.
One trend that still hasn’t self-corrected since the pandemic is the low rate of “churn.” Churn is when older generations move out of family homes and into smaller houses. While this is getting better it needs to get a lot better to help with inventory levels. The last few years have been called ‘The Great Stay’.
On the whole, salaries are also on the rise, which will help people buy houses if they’ve been saving up.
If you’re in the market to buy or sell, or you have loved ones who are, you know we are here to help. Our market knowledge and experience will get you where you want to go with the least amount of stress, greatest respect for your time and wise counsel to help you make a wise decision and investment.
After all of these years (almost 30 now) here is how I see the market. It is always someone’s market whether that be a buyer’s or seller’s market. Like the stockmarket it is impossible to time it. When you want to or need to make a move it is always possible. Accomplishing this with wisdom and a plan is where the advantage takes place. That is where we come in. I think at this point I could write a book on how to do this the extremely right way and the extremely wrong way. How you do it matters incredibly. Man I have seen incredible stories of wealth gain and I have seen total clusters that will impact people for a very long time.
While sales were not the highest last year, our team had our second best year on record. We are dedicated to our clients and found them all exactly what they were looking for (on or off the market). We also helped a lot of people on their journey to stay in place. Sometimes that is the best option for them. Everyone we worked with felt well informed on their decision. LOVE that and work hard for that to happen.
Side Notes From Our Event
Troy went over some very important Brown County stats that will make you feel great about how well our area is doing. We are one of the fastest growing counties in the state which does not surprise me at all. Hobart and Howard Suamico are totally going gang busters with all of the new County infrastructure investments (roads/interchanges) . The next area to explode growth wise will be the South bridge corridor (it already is growing like crazy…Wrightstown will be a very hot spot).
Kelly shared some really helpful insurance information. Three big take-aways. One…the importance of keeping your roof current. If it is over 20 years old and you plan to sell in the near future, your buyer may have trouble getting insurance. We are seeing this happen in the market place big time. Some insurance companies will not renew your policy if your roof is older than 20 years. Two…Be sure if your home is in a trust that your insurance policy matches the trust’s name (oftentimes it does not and this can be a real problem if you need to place a claim). Three…Be sure you have guaranteed replacement cost. Replacement values have skyrocketed. Many companies have this extra cushion. Some do not. Be sure to ask.
Spring Market
The Spring Market is just around the corner and so is the NFL draft. If you are thinking of listing NOW is the time to get going. There will never be more eyes on this town than there will be right after the Super Bowl. March will be an on-fire time to list with so much opportunity. Call us if you need us. We are ready, able and willing to crush it for you!!!
