The Midwest will remain the most affordable area in the U.S. despite slightly higher home prices according to the 2018 Housing Market Outlook released by brokerage firm RE/MAX INTEGRA on Wednesday. The report which covers Indiana, Minnesota, and Wisconsin, provides insight on what to expect in the key housing markets across these regions.
According to the report the average sales price in Indiana was up 5 percent to $171,686 in 2017 with the average time on the market falling 14.8 percent to 66 days. In Minnesota, the average sales price also rose 6.9 percent to $264,801 with the average time on market going down 12.7 percent to 51 days in 2017. At $201,713 Wisconsin recorded a rise of 5.6 percent in its average sales price while its average time on market went down by 9.7 percent to 97 days.
Single family and one story homes remained most in demand in most of the region, with the exceptions being southern and central Indiana, where homes for retirees, ranches, and farm houses remained in demand.
The report indicates that new buyers, including millennials will continue to flood the housing market in search of new homes as the economy in all three Midwest states soars.
“Now, even during the winter months, our real estate experts recommend that sellers’ sell. Intense competition for homes due to low housing inventory over the last year has not led to buyer fatigue, and right now there remains a large pool of serious buyers for all types of homes,” said Fiona Petrie, EVP and MD of U.S. operations for RE/MAX INTEGRA.
According to the report, which identifies statewide trends collected through multiple sources including analysis of housing data and interviews with RE/MAX brokers and agents in each of the three Midwest states, buyers and sellers can expect modest price increases due to even lower inventory and sellers’ market as the average sales prices in the regions covered went up between 5-7 percent in 2017.
The report also indicated increased market activity during the winter months due to the rising demand. Traditionally, the real estate season in these regions starts in the spring and summer months.
According to the report new construction is often priced at $250,000 or above, creating more competition for middle-income and first-time buyers who want to purchase existing homes for affordability in these regions.