How is The Milwaukee Real Estate Market 2019?
Buying real estate in Milwaukee can be a worthy investment opportunity. If you are looking at investing in the Milwaukee real estate market in 2019 as a potential investment opportunity, you must read till the end. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.
Milwaukee is often written off as a rust belt city in decline. While it is an urban Midwest town that started to decline in the 1970s, it is seeing a kind of renaissance. Milwaukee metropolitan area is home to around 600,000 people. It hit its high of around 750,000 people in the 1960s before the population declined, but it is now a slow growing city.
Downtown is undergoing revitalization, and the city is starting to attract college students who moved there following jobs. The Milwaukee housing market is poised for steady price growth in 2019. Is Milwaukee going to be one of the hottest real estate markets for investors in 2019?
To answer this question, let’s take a deep look at the latest Milwaukee housing market trends and find out the prospects of investing in the Milwaukee real estate in 2019.
Milwaukee Real Estate Market Forecasts 2019 & 2020
Real estate market data for Milwaukee suggests that there's little hope the supply shortage is going to be solved this year. Home building is modestly paced in Milwaukee, Ozaukee, Washington and Waukesha counties, and focused largely on higher-end houses.
The limited supply of houses in Milwaukee has pushed up prices, and that should continue in 2018. In the four-county Milwaukee metro area, 21,357 existing homes were sold in 2017, up 1.7% from 2016 and the highest total since 2005.
According to Zillow.com, the median home value in Milwaukee is $123,300. Milwaukee home values have gone up 7.6% over the past year and Zillow's Milwaukee real estate market prediction is that the prices will rise 3.3% within the next year. The median list price per square foot in Milwaukee is $114, which is lower than the Milwaukee-Waukesha-West Allis Metro average of $152.
The median price of homes currently listed in Milwaukee is $137,500 while the median price of homes that sold is $129,800. The median rent price in Milwaukee is $1,100, which is lower than the Milwaukee-Waukesha-West Allis Metro median of $1,200.
Here is the Milwaukee real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.3% till June 2020.
Milwaukee Housing Market Forecast 2019 – 2021
The Milwaukee housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Milwaukee housing market trend prediction is 81%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Milwaukee, WI is 81% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Milwaukee, WI Real Estate Forecast.
Milwaukee Real Estate Market Trends
According to Trulia, Milwaukee real estate market trends indicate an increase of $3,000 (2%) in median home sales and a -2% drop in median rent per month over the past year. The average price per square foot for this same period rose to $126, up from $122. Trulia has 1,294 resale and new homes for sale in Milwaukee, WI, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Milwaukee for May 1 to Jul 31 was $148,000 based on 1,334 home sales. Average price per square foot for Milwaukee was $126, an increase of 3% compared to the same period last year. The median rent per month for apartments in Milwaukee for Jul 6 to Aug 6 was $1,150.
As per the real estate company named Redfin, the Milwaukee housing market is very competitive. Homes in Milwaukee receive 1 offers on average and sell in around 47 days. The average sale price of a home in Milwaukee was $155K last month, up 3.1% since last year.
The average sale price per square foot in Milwaukee is $112, up 5.7% since last year. Homes typically receive 1 offer. Homes in the Milwaukee housing market sell for about 1% below list price and go pending in around 47 days. Hot homes for sale in Milwaukee can sell for about 4% above list price and go pending in around 33 days.
Milwaukee Housing Market Statistics
|Median Sales Price||$148,000 (On Trulia)|
|Price Per Square Ft||$126|
|Median Rent Per Month||$1,150|
|Median Household Income||$34,737|
|Transportation||88% people commute by car; 7% commute by public transportation|
There are 2,728 homes for sale in Milwaukee, WI ranging from $999 to $2.1B on Realtor.com. 265 of which were newly listed within the last week. Additionally, there are 822 Milwaukee rental properties, with a range of $150 to $5000 per month. In July 2019 the housing market in Milwaukee, WI was a seller’s market, which means there were roughly more buyers than there are active homes for sale.
In July 2019, the median list price of homes in Milwaukee, WI was $167.5K, trending up 8.1% year-over-year. The median listing price per square foot was $116. The median sale price was $171K. On average, homes in Milwaukee, WI sell after 51 days on the market. The trend for median days on market in Milwaukee, WI has gone down since last month, and slightly down since last year.
The median list price in Milwaukee, WI is $144,450 on Movoto.com. The median list price in Milwaukee went up 3% from July to August. Milwaukee's home resale inventories is 1,264, which decreased 1 percent since July 2019. The median list price per square foot in Milwaukee is $111. July 2019 was $108. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.
Milwaukee, WI Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Milwaukee, WI is $121,041, which indicates that home prices in Milwaukee are well below the national average for all cities and towns in the United States. Single-family detached homes are the single most common housing type in Milwaukee, accounting for 39.81% of the city's housing units.
Small (one, two or no bedroom) single-family detached homes are the most common type of housing units in Milwaukee. Milwaukee has a mixture of owner-occupied and renter-occupied housing. Other types of housing that are prevalent in Milwaukee include duplexes, large and small apartment complexes and a few row houses.
Currently, there are 959 single family homes for sale in Milwaukee, WI on Zillow. Additionally, there are 146 single family homes for rent in Milwaukee, WI. Under potential listings, there are about 58 Foreclosed and 699 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Milwaukee, WI Foreclosures And Bank Owned Homes 2019
As per Zillow's statistics, in Milwaukee 1.9 homes are foreclosed (per 10,000). This is greater than the Milwaukee-Waukesha-West Allis Metro value of 1.5 and also greater than the national value of 1.2. The percent of delinquent mortgages in Milwaukee is 1.1%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Milwaukee homeowners underwater on their mortgage is 15.7%, which is higher than Milwaukee-Waukesha-West Allis Metro at 6.9%.
|Foreclosures in Milwaukee||1,209|
|Homes for Sale in Milwaukee||684 (RealtyTrac)|
|Median List Price||$174,500 (0% ⇓ vs Jun 2018)|
There are currently 1,209 properties in Milwaukee, WI that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 684. In July 2019, the number of properties that received a foreclosure filing in Milwaukee, WI was 169% higher than the previous month and 52% lower than the same time last year.
Best Places To Buy Real Estate In Milwaukee, Wisconsin
If you are looking to buy real estate in Milwaukee, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Milwaukee real estate and you should be able flip it for a lump sum profit.
When looking to invest in Milwaukee real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Milwaukee investment property should be low. The neighborhoods in Milwaukee must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 214 neighborhoods in Milwaukee. There are 171 elementary schools, 116 middle schools, 62 high schools and 144 private & charter schools.
Some of the best neighborhoods in Milwaukee, Wisconsin are Bay View, Lower East Side and Whitefish Bay. Whitefish Bay has a median listing price of $449.9K, making it the most expensive neighborhood. Harambee is the most affordable neighborhood in Milwaukee, with a median listing price of $64.9K.
Here are the 10 best neighborhoods in Milwaukee to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
W State St / N 21st St
W Wells St / N Plankinton Ave
Marquette U / W Clybourn St
W North Ave / N 15th St
S 6th St / W Becher St
W Highland Ave / N 18th St
E Center St / N Booth St
W National Ave / S 12Th St
N Humboldt Blvd / E Locust St
E Burleigh St / N Weil St
Should You Invest In Milwaukee Real Estate In 2019?
Is it worth buying a house in Milwaukee, WI? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Milwaukee is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Milwaukee housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Milwaukee but we have collected ten evidence based positive things for those who are keen to invest in the Milwaukee real estate in 2019.
Investing in Milwaukee real estate will fetch you good returns in the long term as the home prices in Milwaukee have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Milwaukee real estate market which can help investors who are keen to buy an investment property in this city.
1. Real Estate is Cheap
Milwaukee homes had a median list price of between $150,000 and $155,000. There was a median price per square foot of roughly $110. A large share of the Milwaukee real estate market consists of starter homes and small single family properties perfect for renting out. And you can buy several of these properties with the profits from one condo in a hot California market.
2. Luxury Properties Are a Deal
Luxury markets like the Upper East Side of Milwaukee had a median price of $350,000, a price well below the price tag for mid-market home in hot real estate markets. The hot urban neighborhood of the Historic Third Ward reported a median price of $335,000 in the middle of 2018.
Upscale markets like the Lower East Side cost around $250,000. The supply of luxury homes in the Milwaukee housing market is growing, but it isn’t fast enough to meet the full demand.
3. The Potential for Real Deals
Milwaukee is considered a less healthy real estate market than average. For example, Zillow estimates that a quarter of homes have negative equity (worth less than what is owed on them). The national average is about 10%. Around 2.5% of Milwaukee home owners are delinquent on their mortgage.
The national average is 1.6%. This means that there are a large number of distressed sellers and potential bargains on the market as well as a steady stream of foreclosures. If you’re in the Milwaukee housing market, this creates the opportunity to find homes incredibly cheap that are not fixer-uppers.
4. A Large Renter’s Market
Milwaukee real estate and rents are both relatively affordable, but what matters most is how much locals can afford. It is their incomes relative to rental rates and property prices that determine whether or not they can buy a home.
Wisconsin came in third on a 2017 housing affordability report. Home prices are going up relative to incomes, and that’s forcing many renters to remain renters and newcomers to the area to rent instead of buy.
5. Apartments Are Expensive
While Milwaukee rental rates are below the national average, they’re certainly high. In April, 2018, the median price for a one bedroom apartment cost $830.
You’d have to pay several hundred dollars more for an apartment that is comfortable for a growing family and for that much money, renting a house is a viable alternative to renting a larger apartment. The limited supply of apartments relative to demand means many end up renting houses instead.
That will keep the Milwaukee real estate market strong, since there are no signs of a potential apartment or condo glut that would gut rental rates.
6. Constrained Supply Keeps Property Values Strong
Milwaukee’s real estate market is seeing home values go up due to limited supply. The issue is particularly acute for properties costing less than $300,000. This means that many families that want to live in a house will have to rent, because they struggle to find homes to buy.
The supply isn’t helped by the modest pace of home construction because most properties being built cost over $300,000. Another factor is the labor market itself. There is a scarcity of skilled labor to build new homes at the rate they’re needed.
Yes, the Milwaukee real estate market is seeing homes built, but as we already said, most of the talent that is available is building luxury homes – not affordable ones.
7. Strong Demographics
Milwaukee, as is true for the rest of Wisconsin, has plentiful jobs and a strong economy. This attracts new residents from across the region while preventing young natives from leaving in search of work.
Many Baby Boomers are choosing to remain in their homes, too, preventing those homes from becoming available to the next generation and keeping prices high. This is why first time home buyers are driving up home prices in 2018.
The Milwaukee housing market is only going to see demand for homes grow as many Millenials continue to find work in the Trump years and try to start their own families. The area is attracting young adults, too, with 80% of those moving to the area saying it is because they came for a job.
8. A Changing Legal Climate – For The Better
A recent law passed will protect the right of home owners to rent out their homes on AirBnB and other rental sites. And in early 2018, a bill to change the state’s laws on tenants and landlords was passed.
It required, among other things, limits on citations and fines for landlords, made renter eviction notices public record for ten years, loosened state renovation standards for historic buildings, and required medical documentation for those who wanted service animals.
The bill also limited how long courts could defer an eviction except in cases of proven domestic violence. This makes the Milwaukee real estate market more attractive to landlords.
9. Good ROI Overall
The median rent for Milwaukee hovers around $1100 a month or $13,000 a year. On a $130,000 property, this is a roughly 10% ROI. Rental real estate has an ROI of around 10% per year, half of which you see in appreciation, half of which is in returns.
Expect to spend around 40% of the cost of the property to insure and maintain it. That would be $440. Subtract out the mortgage payments if you didn’t pay cash. If someone has a $600 mortgage, that would be a break-even point.
Note that the $1100 rent is an average for everything from two bedroom apartments to five bedroom single family homes. A more realistic rent for a single family home is $1600-$2000 per month. This would with a large down payment on the property to keep the mortgage down yield several hundred dollars a month of profit per property.
10. And the ROI Is Improving
The elimination of Wisconsin’s state property tax will improve the return on investment for property owners. This was the first time the state had no property tax since 1931. Taxes on the median home were nearly $3000 in 2017. If taxes come down, then investors in the Milwaukee real estate market will keep more money without any extra effort.
Milwaukee Real Estate Investment
Maybe you have done a bit of real estate investing in Milwaukee, WI but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Milwaukee real estate investment opportunity would be a key to your success. in If you invest wisely in Milwaukee real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Milwaukee investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Milwaukee, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Milwaukee, WI.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Milwaukee, WI is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Milwaukee real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
Another market to go for diversifying your investments is the Dallas housing market. Dallas, TX is a great market because it has a strong economy and a constant population growth and will make your pockets bigger. As rents goes up smart investors should invest in Dallas.
Similarly, Houston is another great market for investing in real estate for your early retirement. Houston housing market is becoming a hotbed of buyer activity that could be really beneficial for real estate investors; just ask the multitude of overseas investors who are choosing Houston as the city of choice to invest in for the foreseeable future.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Legal changes in Milwaukee
property tax repeal
First time home buyers drive up prices
Negative equity and market health
Milwaukee Foreclosure Trends Summary https://www.realtytrac.com/statsandtrends/wi/milwaukee-county/milwaukee
Housing Market Data, Trends & Statistics