Wisconsin Economic Outlook
The national housing market has stabilized, but remains fragile; Wisconsin inches toward a tentative recover, says Stephen Malpezzi in the January 2011 Wisconsin Real Estate Magazine.
The National Bureau of Economic Research declared the “great recession” had ended in June of 2009. During the first three quarters of 2010, real GDP grew a modest 2.5% per year.
National Association of Realtors data on house prices peaked in 2005 at about $250,000, saw some of the steepest declines in 2008, and began to stabilize in 2009. House prices are now roughly in line with income, interest rates, and rents.
How’s Wisconsin doing?
Wisconsin’s economy and housing market recovery continues. Our unemployment rate statewide is 7.8%, 2 points below the national average. Wisconsin housing has also outperformed national averages in most of the state. Some of the smaller metropolitan areas like Eau Claire and Green Bay have seen less of a boom and bust cycle than the rest of the country.
Interest rates remain low, even though long-term rates are beginning to creep up a bit. It’s the Fed’s plan to keep rates, short and long, low for the foreseeable future.
Housing prices in Wisconsin have stopped their decline and appear to have stabilized. GDP is growing and employment growth will strengthen with any luck.