The first quarter of 2022 is shaping up to be the strongest recorded seller’s market in Milwaukee’s history. As of this posting, we have little to no inventory at all price points in the North Shore, Ozaukee County and all communities west. Prices for homes have skyrocketed over the last two months as the scarcity of homes has increased and the demand is outstripping supply. We had a bit of an expected slowdown in the summer and fall, as we do annually, but as we began the month of October inventory tightened and demand for housing increased, soaring past the robust real estate market of 2021.
The average North Shore home is selling at 101% sale to list price. We are seeing the price per square foot in the North Shore anywhere from $245 to even $400 a square foot OFF Lake Michigan. Days on market are in the single digits and I am forecasting similar market results to continue through March. The height of the market in any given year is January through May. Spring break is late this year in mid-April, and you should expect the market to slow after spring break. The best possible time to list a home is when there is no inventory. I am suggesting to anyone thinking of selling to prepare their home now to capture the best prices for 2022. January and February will be exceptionally hot despite our cold Wisconsin winters and our list of buyers continues to outstrip our listings three to one.
Mequon and Ozaukee County are experiencing the same conditions with soaring prices and low inventory. For luxury homes over $700,000 the price per square foot is now average $210 or greater a square foot and a 98% sale to list price ratio with an average of less than 58 days on market, which is a new record for Mequon. Historically 2021/22 will be Mequon’s best residential real estate market. Ozaukee County in general is breaking records in every community. Port Washington condo developments are sold out before they are built, and we are reaching new historical high prices in every community we serve. Please note that inventory rates in Mequon, Whitefish Bay, Shorewood, Bayside and Fox Point have dropped aggressively through November and December. In some price points, there is no inventory.
As a leader in Milwaukee Residential Real Estate, I have a responsibility to inform all my sellers of impending trends and changes. Sometimes those changes are very good and exciting, like now, and sometimes they are a preparation of things to come. I want everyone to be informed. I am letting you know my observations this morning so you can make good choices in your real estate. We are expecting interest rates to reach 4% by the end of 2022 which will have an impact on some buyers. The market is very fluid and uncertain. Supply chain issues, pandemic conditions, worker shortages, and migration from the cities continues to impact our housing here in Milwaukee. We are a destination for a nation who can live anywhere. Wisconsin is very popular in the land of “I can live anywhere and work remotely” and that means increased sale prices for your real estate, the kind like we have never seen before.
