Lake Country Real Estate & The Economy
September 30, 2022

Tamira Musgrave



  • According to The Ascent, the 2022 typical home price in Wisconsin is: $266,750 (62% of the usual US price).
  • A typical single-family home in Wisconsin was about $236,551 as of August 2021, which is lower than the national average of $303,288
  • Wisconsin mortgage rate, July 2022: 5.84
  • Average mortgage payment to median income: 24.7%

First-time homebuyers face extreme challenges as they enter the housing market. Rising home prices and less buying power because of inflation have become a looming black cloud over the market, making homes much less affordable. 

A data analyst from Nerd Wallet, Elizabeth Renter, has witnessed affordability drop drastically for new buyers. Homes list around 6.6x higher than their income, whereas the general rule of thumb is 3x yearly income. However, she also says her numbers are just averages, and every housing market across the United States varies. 

Potential buyers shouldn’t focus all of their attention on national headlines but should pay attention to local trends. The best thing you can do if you are planning on buying a home is to find a trusted, reputable local professional to help you identify your options. 

Buying and Selling in Lake Country 

The homes listed for sale in Lake Country, Wisconsin, vary from affordable condos or apartments to spectacularly expensive and picturesque lakefront estates. Many people choose to settle in Lake Country because it’s just 30-45 minutes away from Milwaukee, making it a comfortable suburban location for anyone who isn’t a fan of living in the city but can’t make a long commute. 

Lake Country Home Realty, a local company focusing on sellers and buyers in the Lake Country area, shared an update concerning average listing prices on their blog earlier in the year on January 26, 2022. 

LCHR stated, “We are currently getting on average 101% of the listing price of all our listings since we started back in 2015. That means our listings sell for more than they are listed for. The average for our area is currently at 97% for the metro Milwaukee area, which includes Racine County, Milwaukee County, Ozaukee County, Waukesha County, Washington County, Walworth County, and Jefferson County. Also, Lake Country Home Real Estate’s average days on the market is 19 days, while metro Milwaukee’s average is 52 days.”

Zillow estimates have indicated that the value of a typical single-family home in Wisconsin was about $236,551, which is lower than the national average of $303,288 (as of August 2021.) Across the state, the value of a single-family home spiked 14.6% over the one-year timeframe between August 2020 to August 2021; the national was 17.7%.

Housing prices are driven by supply and demand and what locals can afford to pay. Ultimately, areas with higher than average home values often go hand-in-hand with higher-income residents. For example, the typical household in the state earns $64,168 annually, which comes in $1,500 less than the national median income of $65,712. 

According to The Ascent, the 2022 typical home price in Wisconsin is: $266,750 (62% of the usual US price)

  • Typical single-family home value in 2022: $266,750
  • Wisconsin mortgage rate, July 2022: 5.84
  • Average mortgage payment to median income: 24.7%

Inflation and the Housing Market

According to the United States Bureau of Labor Statistics, June’s inflation hit a 40-year high, reaching 9.1%. Consumer prices are remarkably higher than just a few years back when inflation rates stood at 1.4% in 2020 and only 0.7% in 2015. 

As buyers see inflation eat holes in their pockets, they will likely be warier and shy away from purchasing. Yet, at the same time, mortgage rates continue growing. Housing experts point the finger at inflation and the Federal Reserve.

While the Federal Reserve doesn’t directly determine mortgage rates, its movements impact mortgage rates indirectly. The connection between your mortgage interest rate and the Federal Reserve is complex. However, your mortgage rate tends to follow suit when the federal funds rate increases. 

So far, mortgage rates have spiked quite dramatically in 2022 and won’t drop to pre-inflation levels anytime soon. According to a Statista report, home values across the United States increased between 2020 and 2021. In addition, the same report revealed that the average appreciation for single-family homes spiked to more than 27% across various states in just one year

Something else to note is that when inflation is high, materials will cost more. Higher material prices make building new homes particularly expensive; renovating existing homes can be too. So those increased material costs drive up the prices for new builds, and construction companies will have to charge higher prices because it costs them more, too.

Regardless of how inflation affects the market, it will shuffle the cards regarding choices and opportunities for buyers and sellers. But, again, connecting with an experienced and local real estate agent can give you a clear picture of your options. 

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