If American households think it is a "good time" to buy a house, they'll likely feel comfortable listing their home for sale, and buying another.

The problem is, most currently don't.

That's why, just in greater Milwaukee county, through the end of 3rd quarter, the number of home sales is down 23%, by about 4,000 sales! The market recently has screeched to a halt as many households are "waiting". But this begs the question, for what?

Our economy has actually improved from last year, according to the data, but when 2,217 adults were surveyed by FocalData, the majority got it wrong - how can consumer perception be so far off from what's going on? (see the chart below)

Here are the things that have actually improved from one year ago (supported by the data)!:

1. Wages have increased faster than the cost of goods

2. Inflation has gone down since last year (a lot!)

3. the average American household is wealthier than before the pandemic

4. A household earning average income can indeed afford a better lifestyle today

I want to be clear about something, everyone's personal circumstances are different. It is possible your personal income has not increased, and your net worth is lower than before the pandemic!

That being said, the moment the market gains confidence, watch out! It's not that long ago that we remember 30-45 offers being written per property. We are in this pickle because new construction is only adding inventory to the $500,000+ housing market, in most cities, and so the first-time homebuyer price point $200,000-350,000 is hyper competitive, especially when consumer sentiment is up. 

If you, or someone you know is considering making a purchase, and you love the home and the neighborhood, why not pull the trigger while everyone else is "waiting on the sidelines"?

As soon as the majority of people are optimistic about our economy, it's likely purchasing the same exact home could cost 10-15% more (we saw this affect during COVID when mortgage rates rallied the housing market!)

Questions? As always, text or call me at: 414-488-0438