Declining home values are projected to be given a reprieve in Wisconsin for at least part of 2010 as the federal home buyers' incentive acts to strengthen housing sales. But don't expect the slowdown to last for long.
Wisconsin housing prices are declining at some of the slowest rates in the country, which is good news for homeowners in the state better known for producing more beer than just about any where else in the U.S.
In Milwaukee the housing market hasn't been moving as fast as beer bottles off a production line, but sales are showing an improvement with the expansion of the first time home buyers' tax credit to move-up buyers. Housing sales have made a modest come back, but prices are still declining.
Bargain priced foreclosures are to blame for much of the deflation as bankers slash prices to sell-off the over abundance of foreclosures before more hit the market later in the year. Milwaukee has seen a record volume of homes waiting to be foreclosed sitting vacant in especially hard hit neighborhoods. The projected wave of foreclosures will send average prices south, forecast at 7.2% for the year.
| City |
Forecast |
| Milwaukee |
− 7.2% |
| Green Bay |
− 6.0% |
| Kenosha |
− 5.8% |
| Madison |
− 6.5% |
In Madison home sales rose with the government driven stimulus after under-going their worst downturn since the Savings and Loan Crisis back in the 1980s. Rising unemployment in manufacturing, retail sales and professional services are hurting the local economy and triggering more foreclosures. Madison is forecast to see average homes deflate 6.5% in 2010.
Green Bay, which is better known for being the home of the Green Bay Packers than perhaps anything else has been hit hard by the recessionary economy, and the housing depression. But home sales have been boosted by the government incentive slightly. Bargain priced foreclosures have been selling for as low as a nickel on a dollar in the football capital and are forecast to withstand average deflation of 6.0% by year's end.
The downturn in Kenosha came after new subdivisions sprang up all over the community during the national real estate boom. The financial crisis stopped home builders in their tracts and they haven't recovered yet. The long protracted downturn has slowed the local economy as it impacts as much as 40% of related industries, including home construction, retail sales and lumber.
Wisconsin residents are hearty people, who have a passion for the love of their state's outdoors. The government may give the area a boost with extra stimulus packages as Kenosha is forecast to sustain average housing deflation of 5.8% through 2010.
