Photo by Kyle Pozorski
Real Estate Prices on the Rise
Story By Kyle Pozorski
Local News Published 06/18/2021 7:08PM
Rhinelander - If you have been in the market for a new home or maybe just a summer cabin, lately you've probably noticed home prices have been on the rise, over the last year.
According to the Federal Housing Finance Agency, housing prices increased nationally by more than 12% compared to a year ago and went up by more than 2% in the first quarter of 2021. This was compiled by their purchase only index, which measures the standard deviation of house price growth. Broker and Owner of Flanders Realty Group, Joe Flander, spoke about some of the changes that he is seeing locally to the Northwoods housing market.
"It's completely flipped upside down, in a traditional market you do inspections and have financing contingencies, and then renegotiate with the seller, and for the most part in this current market, there is virtually no negotiating."
He continued to say that the housing market is highly competitive because of two key aspects which are driving the rising prices.
"The Northwoods real-estate market is where it is because of record low interest rates and extremely low inventory, and those two things combined with the fact that people found out during Covid you can now work from home, which makes the Northwoods that much more desirable" said Flander.
The 12% jump is the highest increase in prices that the index has measured since its creation in 1991. Experts warn that with how competitive the housing market is; buyers can get caught up in troubling situations and it is always recommended to seek advice from a professional financial advisor.