Wisconsin records largest annual increase in real estate income in 4 decades

GREEN BAY, Wis. (NBC 26) – Northeast Wisconsin residents selling their homes are cashing in. And last year, the state government also reaped the rewards of high property values.

“Prices are rising here, bringing them to where they are in larger markets,” said Red Key Real Estate co-owner Mark Cherney.

Real estate sales and property values ​​soared across the state in 2021.

And the median price of homes sold was even higher in Brown County, where Cherney works.

“Probably one of the busiest markets in the state,” he said. “But I know pretty much everywhere you go, you’re going through the same thing.”

A new study published Thursday by the Wisconsin Policy Forum can attest to this. The nonprofit saw a 37% increase in real estate transfer revenue in fiscal year 2021.

Wisconsin Policy Forum

A new study released Thursday by the Wisconsin Policy Forum found a 37% increase in real estate transfer revenue in fiscal year 2021.

“Most states collect as a royalty or tax on real estate sales,” said Mark Sommerhauser, director of communications and policy researcher. “In Wisconsin, it’s $3 for every thousand dollars of real estate that’s transferred.”

The Forum reports that last year’s real estate trends were influenced by low mortgage rates, which were around 3%.

“Record mortgage interest rates really got, I think, a lot of people to buy,” Sommerhauser said.

The total number of real estate sales jumped 11%.

“Single-family residential sales, we actually had fewer sales in 2021 than we did in 2020,” Cherney said. “But the dollar amount, the volume of those sales actually increased.”

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Wisconsin Policy Forum

The median value of these single-family homes has gone from over $126,000 in 2016 to around $170,000 last year.

The median value of these single-family homes has gone from over $126,000 in 2016 to around $170,000 last year.

“It’s unfortunate that affordability for buyers, especially first-time buyers, sometimes becomes unaffordable for them,” Cherney said.

In the current state of the market, Cherney says sellers currently have the advantage, while buyers compete.

“It’s a changing market,” he said. “I don’t think it’s a bubble. I don’t think it’s a trend.”

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