Real Estate Market Trends in Kenosha, WI
Single Family Homes – Condo/Townhomes
In the past week, single family homes in Kenosha sold on average for $309,950 and spent 121 days on the market. In Kenosha, the inventory of 34 experienced a 18% relisting. The average price per square foot was $191.
The median home price in Kenosha, WI is $299,900. Currently, there are 137 homes listed in Kenosha which include 24 condos, 0 foreclosures.
According to Redfin, “The Kenosha housing market is somewhat competitive. Homes in Kenosha receive 2 offers on average and sell in around 55 days. The average sale price of a home in Kenosha was $222K last month, up 14.1% since last year. The average sale price per square foot in Kenosha is $143, up 2.1% since last year.”
In January 2023, Kenosha home prices were up 16.2% compared to last year, selling for a median price of $207K. On average, homes in Kenosha sell after 60 days on the market compared to 61 days last year. There were 68 homes sold in January this year, down from 83 last year.
On a National Level per the Experts
Home Prices Still Forecasted to Appreciate This Year
CoreLogic’s Home Price Index showed that home prices nationwide fell by 0.2% from December to January but they were 5.5% higher when compared to January of last year. This annual appreciation reading declined from 6.9% in December but is still solid. CoreLogic forecasts that home prices will drop 0.1% in February but rise 3.1% in the year going forward.
What’s the bottom line? CoreLogic’s Chief Economist Selma Hepp said that “the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.” This is a far cry from a housing crash of 20% that some in the media have been predicting.
And while CoreLogic has reported slightly negative readings month to month, they still forecast 3.1% appreciation nationwide over the next year, which can be meaningful for wealth creation. For example, if someone bought a $400,000 home and put 10% down, they would gain $12,000 in appreciation over the next year and earn a 30% return on their investment due to leverage.
Nobody’s Market
Realtor.com economist Jiayi Xu said that while it’s hard to predict whether the Fed is going to make an aggressive move next month, if companies tighten belts in preparation for a potential economic downturn, it could endanger jobs in the tech industry and service sectors.
“This means that the housing market will continue to be a ‘nobody’s market’ — not friendly to buyers nor to sellers. Mortgage rates are likely to move in the 6% – 7% range over the next few weeks, which continues to pose a significant challenge to affordability,” Xu said.
“In turn, potential buyers could opt to stay in the rental market, driving up the already high rental demand,” Xu explained.
Fed Vows to “Stay the Course” in Inflation Fight
Fed Chair Jerome Powell presented the Fed’s Semiannual Monetary Policy Report to Congress. He said that although inflation has moderated in recent months, there is still a long way to go until inflation reaches the Fed’s 2% target – and the road “is likely to be bumpy.” Powell noted stronger than expected employment, consumer spending and manufacturing data suggested that inflationary pressures were running higher than expected. He vowed the Fed will “stay the course until the job is done.”
What’s the bottom line? The Fed has hiked its benchmark Fed Funds Rate eight times since last March, bringing it to a range of 4.5% to 4.75% This is the interest rate for overnight borrowing for banks and it is not the same as mortgage rates. When the Fed hikes the Fed Funds Rate, they are trying to slow the economy and curb inflation.
The Fed is clearly afraid of inflation resurging like it did in the 1970’s, as Powell noted that “the historical record cautions strongly against prematurely loosening policy.” The Fed’s next meeting and decision regarding additional hikes to the Fed Funds Rate is March 21-22.
When is the Best Time to Buy or Sell?
Spring (March-May) The spring months are often considered the best month to sell a house. In fact, across the country, the first two weeks of May are often the busiest and most lucrative time for sellers.
