As daylight grows shorter, some Northwestern Wisconsin home buyers are stepping back and hoping for better luck next spring. However, the 2022 market isn’t likely to be any cheaper – or easier – than 2021.
One reason is the cost of new home construction, which skyrocketed to new highs during 2021. The National Association of Home Builders reported that new home prices were 20% higher this year. It is estimated that rising lumber costs alone increased the average new home price by $30,000.
In Wisconsin, the average cost a new home ranges from $350,000 to $550,000, depending on the lot, home design, square footage, type of materials and so on. Despite the rising costs, Wisconsin builders report strong buyer demand. Residential permit activity increased by 38% during the first half of 2021, compared to the same period in 2020.
Construction trends can help forecast the near-term future of the real estate market. When we see home builders dealing with inflated costs in their projects today, we know it’s going to show up in the completed home prices down the road. We also know that buyers are committed to purchasing these homes, based on permit activity.
Meanwhile, higher costs of lumber, materials and appliances affect existing homeowners, too. Anyone looking to update a home for the market will be paying more to do it. Those costs are going to be baked into the asking price.
Northwestern Wisconsin home buyers, your best bet is to stay in the market and be ready to jump when the right home comes along. Some of the best opportunities of the year come during the fall and winter, when less-motivated buyers take a breather!
Let us help you buy or sell Northwestern Wisconsin real estate! Six Lakes Realty is a locally-owned family business with over 40 years of experience. Call us today for friendly, hometown service!
Six Lakes Realty
Office: (715) 924-4806