Homes more affordable; experts speculate about 2010

Talk about it

Homes in Wisconsin are more affordable these days – but experts wonder what will happen after December, when the federal tax credit goes away…

Homes in Wisconsin are much more affordable due to falling prices, low interest rates, and an $8,000 federal tax credit for first-time buyers.

But some experts wonder if the bottom will drop out after Dec. 1, when the tax credit from the economic stimulus package goes away.

Lawrence Yun, chief economist for the National Association of Realtors, says the market is in a healing process – and it’s already returning to normal conditions.

He says prospective buyers are out shopping if they’re “financially ready.” But that’s a big “if,” according to Marquette economics professor David Clark.

He says the unemployment situation is the big factor in deciding whether the home markets go up or down.

Wisconsin’s jobless rate is still close to 9 percent. And Clark does not expect it to level off until the first half of next year.

He says communities that rely more heavily on manufacturing will recover more slowly than other places.

And Clark expects improvements in home sales and prices as early as next spring.

The Wisconsin Realtors Association said home sales in the second quarter were down 10.5 percent from the year before, a smaller drop than earlier in the recession.

Prices were down almost 10 percent.

Tags: housing market, affordable homes, wisconsin