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2021: What to Expect in the Wisconsin Real Estate Market
January 18, 2021

2021: What to Expect in the Wisconsin Real Estate Market

by The CE Shop Team

You May Be Busier Than Ever in Wisconsin’s Hot Real Estate Market

Despite the onset of the COVID-19 pandemic last year, the Wisconsin real estate industry has remained strong. In 2021, markets across the state are forecasted to continue that momentum. With high demand, limited inventory, and rapidly rising home sale prices, real estate agents all across Wisconsin should gear up for another booming year.

2021 Wisconsin Real Estate Outlook: Hot

In November 2020, the average home in Wisconsin was priced at $207,018, an 8.1% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 10.2% within the next year. Rising prices echo the gradual healing of the economy statewide, signaling that this year could be profitable for agents and sellers alike, while low-interest rates maintain some degree of affordability for buyers.

Along with rising home prices, home sales statewide grew 15.0% year-over-year in November 2020. Inventory also fell a significant 31.0% from 2019’s figure. This momentum illustrates a departure from the typical seasonality of home buying and is a good sign for the coming winter months. Buyers are still eager to commit, even without the draw of spring curb appeal and warm-weather open houses. Between lasting low-interest rates bolstering demand and a consistently low housing supply, Wisconsin is a seller’s market as 2021 unfolds.

After the economic tribulations of 2020 and in the midst of a national big city exodus, rent prices increased only 0.6% statewide and even decreased 2.8% in the Madison metro area. Meanwhile, only 0.4% of Wisconsin homeowners fell delinquent on their mortgage, and equity slipped into the negative on only 3.8% of homes statewide. So, while new renters flock to rural and suburban Wisconsin, current homeowners continue to thrive as well.

2020 Wisconsin Real Estate Market Data

Zillow Home Value Index $207,018
1-Year Change on Home Values +8.1%
1-Year Forecast +10.2%
1-Year Change on Rent Prices +0.6%
Homes With Negative Equity 3.8%
Delinquent on Mortgages 0.4%
Buyer’s or Seller’s Market Seller’s

Market Insights for Wisconsin

In November 2020, the U.S. Bureau of Labor Statistics reported that Wisconsin’s unemployment rate had dropped 1.0%, landing at 5.0% statewide. This figure is significantly down from a 13.6% peak in April, illustrating the promise in Wisconsin’s job market. As healthy economic activity often correlates with growth in the real estate industry, narrowing unemployment rates are a positive sign for agents the year ahead.

While Wisconsin’s economy is expected to bounce back after grappling with COVID-19, the resilient housing market is a bright spot in the new year. A focus on local business, as well as a gradual return to air travel, could further help mitigate some of the economic damage. Federal assistance may also bolster economic growth and compound success in real estate.

Here’s how the state ranks among the nation:

  • Sixth in opportunity
  • Tenth in natural environment
  • Fourteenth in health care
  • Fourteenth in education
  • Fourteenth in fiscal stability

With a strong 2021 forecast, Wisconsin real estate agents will need to be at the top of their game. From buyers battling rising prices to sellers fielding multiple offers, there has never been a better time to serve your fellow Wisconsinites. This year, agents can expect to benefit from and help contribute to a booming local and national economy in the hot Wisconsin real estate market.

Take On 2021 With the Best Wisconsin Real Estate Courses From The CE Shop

Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Wisconsinites with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Wisconsin? Join the Midwestern Real Estate Facebook Group!