Getting pre-approved should be the 1st thing you look into doing before you start looking for a home.You should see what loan program you are qualified for, that way you can have an idea of
Tis The Season To Be Buying
TIS THE SEASON TO BE BUYING!
Buying NOW could save you THOUSANDS!
The real estate market in Southeastern Wisconsin has been a boom for the past 15 months, especially in Kenosha and Racine. When I attended a Zillow conference in Chicago last yeare, they indicated that Kenosha was going to be the hottest market in the Chicago region for some time to come, and they were right. With additional economic news, new companies such as Amazon, Unline and other major distribution centers relocating to the area along with a tax climate far more favorable to homeowners than Illinois, the area has certainly felt the growth.
BUT THE BIGGEST ANNOUNCEMENT early this summer with a deal being officially signed LAST week between the state government and a major new employer to the area, creating what is ALREADY being called:
The WISCONN VALLEY
The even more recent announcements... of Mount Pleasant becoming the site of a $10 Billion facility for Foxconn Technology Group ultimately employing 13,000 people, is fuelling even greater growth in the industrial, commercial and residential sectors of real estate in both Kenosha and Racine counties and will be the states largest employer.
Wisconsin Governor Scott Walker and Foxconn Technology Group Chairman Terry Gou have signed off on a $3 billion package for the Taiwanese company to build the massive display screen factory with construction beginning this spring. It is projected that there will be over 10,000 construction jobs during the development of this facility with phased projects that will employ the first 5500 people within the first five years and the full 13000 by 2023. In addition to the direct employees, thousands of supply chain, and service sector jobs will also have a tremendous inpact of our economies.
What does this mean to YOU as a buyer? DON'T MAKE A $50,000 MISTAKE
The market in southeastern Wisconsin right now has had JUST ENOUGH of a slowdown for buyers to catch their breath! This won't last long. Typically during the holidays there are less buyers looking then at other times of the year. This year is no exception and although this is the busiest holiday season in real estate I have seen in over 10 years, it is still a little slower than the summer and fall, slower than last spring and is certainly going to be followed up with by a even busier spring than last year. This may be one of the BEST buying opportunities for homeowners and investors EVER.
Two things will affect your ability to purchase a home in the spring.
#1 EXPECT PRICES TO RISE
When the spring market comes, we will have many more buyers than sellers and the continued inventory shortgage is expected to last 3-5 years while new construction and rising existing home prices eventually catch up to the growing demand. This means you will have to pay considerably more for the same amount of house next spring, and that trend is likely to continue.
#2 EXPECT RATES TO RISE
The overall us economy is steadily improving and as this continues to happen, the Fed will have to raise rates to control that growth and avoid upward pressure on the inflation rates. When this happens, mortage rates will also rise and the amount of monthly payment for the SAME priced house will increase substantially.
Whether you are a first time homebuyer, or looking to upgrade, NOW is the time to make your move. Many homeowners get stuck thinking about the rising prices being a good thing for them and deciding to wait, which makes sense if you are not going to buy another home, however for most homeowners who are upgrading by 30-40% in value, this strategy will cost you money.
Here's an example, lets say you own a home at the median price in the City of Kenosha right now....
CURRENT HOME VALUE: $160,000
Current Mortgage Balance: $96,000
Current Equity (After taxes and closing costs) $51,200
FUTURE HOME: $250,000
FUTURE MORTGAGE: $200,000
CURRENT RATE 4%
FUTURE PAYMENT (P&I) $954.83
Now lets assume that you wait for the market to improve by just 5% total...
Ralph is a lifelong resident of Southeastern Wisconsin and an expert in real estate sales, and real estate values in Kenosha, Pleasant Prairie, Somers, Bristol, Salem, Paddock Lake and the surrounding....