With Surplus of Houses, Buyers Hold the Cards

ScottR · Chief Bottle Washer Joined: Feb 11, 2006 Posts: 332

Since housing prices peaked in some areas in the summer of 2007, they have headed steadily down. At the same time, foreclosures and high unemployment have caused the supply of houses to increase. Wisconsin REALTORS® Association President Bill Malkasian comments, "I've heard of buyers looking for two years. The property has to be immaculate. They are looking for a steal beyond a steal. They have all the patience in the world, and they are just waiting for that steal." David Stiff, an economist with the Case-Shiller unit of Brookfield-based Fiserv Inc., believes that home prices are nearing a bottom. However, he expects those prices will probably bounce along the bottom for a while before showing signs of any significant improvement. More specifically, Fiserv Case-Shiller forecasts a 0.1 percent decline in Milwaukee-area home prices by the first three months of 2012 before they climb 2.1 percent between 2012 and 2013. For the Madison metro area, a 2.6 percent decline in home prices is forecast by next year's first quarter, followed by a projected 0.7 percent rise between 2012 and 2013. Researchers conclude that Green Bay is Wisconsin's one major metro area that might be done with declining prices. The latest Fiserv Case-Shiller report predicts a 1 percent rise in Green Bay-area home prices by the first quarter of 2012 and a 1.6 percent improvement between 2012 and 2013.