The 2022 Lake Geneva Area Real Estate Market…
no one can predict what is going to happen this early, here are some indicators of what may happen. Friendly reminder: real estate is very local. Even in Lake Geneva and other southern Wisconsin areas in which we work, markets can vary from one another. Markets can vary based on location, price point and property type.
With that said, here’s what I expect & I suggest:
There is not going to be a market crash anytime soon. This is not 2008. Please read this post if you haven’t already. In 2008, among other things, there was an oversupply of homes for sale. Currently, there is still a shortage of homes for sale in our markets.
In our local markets, the MSI (monthly supply of inventory) is increasing. This means, usually, there is a change in buyer demand or home supply. For your specific market, contact Kristine for details.
Speak with a reputable, local mortgage lender if you’re thinking of buying and taking out a mortgage. We have GREAT lender connections – just ask! Rates are going up and it could be advantageous for you to buy sooner than later…higher mortgage rates mean a higher monthly payment.
Buy real estate and wait. Don’t wait and buy real estate. More buyers are also out in the late winter and busy spring, which means increased competition for you. More buyers = more showings = more offers = more competitive offer terms and pricing.
The Realtor.com® 2022 housing forecast anticipates the market will continue slowing down from the frenzy seen in the spring when prices shot up to new heights. However, prices will stay high, inventory will remain tight, and mortgage rates will rise.
Due to lower inventory numbers (supply), it is expected for homes to still sell quickly, generally speaking, with competitive terms and prices.
Realtor.com economists anticipate home prices are expected to increase at a much slower rate of just 2.9% over this year compared with an anticipated 12% rise in 2021
Home prices won’t necessary go down, they just won’t increase as quickly
Realtor.com economists predict the number of homes for sale, which is hovering around record lows, will tick up only 0.3%. That’s partly due to builders having a tough time ramping up construction as they contend with shortages in workers and materials, compounded by the global supply chain backups. (Single-family housing starts, which is when builders start construction, is expected to rise only 5% next year.)
With many working remotely (or in the office not as much), it is expected that second homes and lake homes will still be popular with buyers (in addition to a move to more suburban communities)
More and more people are calling the beautiful Lake Geneva area home - with a majority of people in communities like Geneva National being originally from out-of-state.
If you’re looking to buy or sell in the Lake Geneva area, southern Wisconsin or the Chicago suburbs, let’s chat! Kristine Glockler, Coldwell Banker Realty, (708)480-2011
Kristine Glockler is licensed in Wisconsin and Illinois.
