Eau Claire (WQOW) - Wisconsin's housing market is mounting a comeback with encouraging signs from 2012's Annual Realtors Report. Take Eau Claire County for example, the median price of a home was up more than $2,000.
"I would say that's one of the top if not the top part of the economy of the united states," says Economics Lecturer at UW-Stout Richard Postlewaite
The housing market can show us a lot about our economy and 2012 supports a promising future for Wisconsin.
"Overall last year we had a very modest increase in sales and a very modest increase in prices," says Realtor David FitzGerald.
"Housing is a key indicator in the sense that if I buy a house, I'm going to maybe remodel or I'm going to buy new furniture, new appliances. I'm going to put money into the house to try and make it look good," says Postlewaite.
When you put that extra money into your home it not only improves the look it also increases what the home is worth.
"I suspect instead of seeing those typical 2% to 3% increases, we'll probably see increases closer to maybe 4% or 5% in the next five years," says FitzGerald.
Good news for sellers, but buyers might need to get a move on to move in on a good deal.
"If they're going to get in with these low interest rates, now is the time to do it before the prices suddenly go back up again," says Postlewaite.
"Get pre-qualified, be prepared to buy and when they see what they want, be prepared to act," says FitzGerald.
With fewer foreclosures on the market in 2012 there's also less competition to sell.
"It's an opportunity for them also, but certainly we're going to see some price recovery so they're not in as much of a panic mode," says FitzGerald.
Another factor to consider in the return of the housing market is the banks and how they lend.
"I don't think here it will affect us. I think other states have learned their lesson that a significant recession was caused by over borrowing," says Postlewaite.
When you piece all these parts together, it paints a promising 2013 for the housing market.
"That's a real good sign," says FitzGerald.
The housing market is considered a key indicator in our nation's economy because new home construction and remodeling effect many other industries.
