Local agent says Milwaukee housing market looks good

Today, OnMilwaukee.com posted an article called “Home inspection unlocks door to successful home buying.” For the piece, I interviewed home inspector Nicholas Petrie -- founder of Smart Move Home Inspection Services -- about what a good inspector provides and what questions a potential buyer should ask.

During the process of researching and writing this article, I began to wonder how the Milwaukee housing market is doing these days, so I turned to John Dye, real estate sales associate with Terapak Realty, to provide insight. 

Of course, the perspective is slightly biased because an agent's salary is based on a flourishing market, but Dye's comments make sense. 

OnMilwaukee.com: How would you describe the current Milwaukee housing market? What does the future of the market look like?

John Dye: The current market isn’t as bad as a lot of people feel.  I think people have a tendency to listen to national news reports and feel that the world is crashing down around them. In truth, Milwaukee has been sheltered from much of the ill effects of the housing market crash. Buyers are still buying and sellers are still selling, just not at the pace they were before. Also, prices have fallen somewhat, but they are probably closer to where they should be.

I feel that Milwaukee was an undervalued real estate market for years. I don’t know many other cities where you could buy a decent house in a decent neighborhood for $50,000!  When I moved here from Seattle I felt like I was in heaven. I worked part time and went to school and still bought a house on my own. This wouldn’t have been possible in most areas of the country.

I believe the housing boom just corrected this under-valuation.  While the days of $50,000 houses are gone, we still live in an affordable market where you can find a great house for under $150,000.  

OMC: Is spring the best time to buy a house?

JD: Spring is traditionally thought of as a good time to buy a house. There is a lot of inventory and there is a psychological sense of rejuvenation. So in that sense, it is a perfect time to buy a house. Plus, if you have kids, springtime is a good time to start looking for a summer move.

Unfortunately, there are a lot of buyers who feel spring is a good time to buy, so there may be more competition. Buyers sometimes end up paying a premium in the springtime. In this sense, spring may be the best time to sell a house.

Looking at the other seasons, I feel that winter can be a good time to buy a house.  While there is less inventory to choose from in the winter, there is also less competition.  Who wants to be tromping through snow looking at houses?  Sellers are generally more motivated and there is more room for negotiation.  Plus, it is good to see a house in its raw state.  No pretty gardens or illusions of backyard barbeques to distract you.  Just a raw house sitting alone.  Unfortunately, it you buy in the winter, you may also have to move in the winter, which nobody likes.

OMC: Seriously, is this a good time to buy a house in Milwaukee?

JD: I think this is a great time to buy a house. Prices are good and sellers are being reasonable. Plus, interest rates are good, so monthly payments are reasonable.

OMC: Which neighborhoods have the best deals?

JD: Right now, all neighborhoods have some good deals. However, the good deals still go quickly. I still see houses selling in the first week.

Riverwest has a lot of great deals. It is a solid, convenient neighborhood with a good housing stock and affordable prices. I like the way Riverwest is evolving in to a neighborhood known for local businesses, both large and small.

Lately, I have also been a huge fan of the near West Side.  The neighborhoods of Concordia, Cold Spring Park and Washington Heights offer some excellent deals, especially given the quality of houses. If you are looking for more size for your money and like historic houses, these are definitely areas worth checking out. I moved to Cold Spring Park two years ago because I fell in love with a house. I didn’t know what to expect from the neighborhood -- I have been pleasantly surprised at the strong sense of community and the convenience these areas have to offer.

One of the only drawbacks of these areas is that, at least for now, there are few businesses to walk to. There has been a slow transformation of Vliet Street in Washington Heights and the area around Marquette that leads me to believe that this will not be the case forever.  Businesses like the Ambassador Hotel, Meritage and Pizzeria Tazza are some examples of businesses that are catering to the residents of these areas.

OMC: Is there anything else you want to mention about homebuying in Milwaukee?

JD: I think if you are writing about the current market it is only fair to bring up lenders.

I think one of the reasons Milwaukee was somewhat insulated from the real estate bubble burst is because we didn’t have the number of predatory lenders a lot of areas had.  I know some mortgage brokers outside of Milwaukee who made gobs of money during the housing boom. Some of the products they sold were just plain wrong.  It shows that, just because you can do something, doesn’t mean you ought to. Now, as a society, we are paying for these mistakes.

In Milwaukee, we have a great number of local lenders that offer honest products and honest services. Local banks like the Equitable Bank, Johnson Bank, Northshore Bank and Mitchell Bank offer competitive rates and local service; plus, they keep a lot of the money in the Milwaukee area. In addition, programs offered by WHEDA and first time homebuyer counseling services offered by organizations like Select Milwaukee are invaluable to first time buyers. I think we can thank these programs for keeping Milwaukee above the worst of the housing bust.