MILWAUKEE - Over half of Wisconsin homeowners
expect to see the value of their houses increase in the next
year, according to a study released Wednesday.
BMO Harris Bank polled 2,500 Americans -
including 250 from Wisconsin - from April 1-7 this year to gauge
homeowners' confidence in the housing market, both in the state
and across the nation.
According to the study, 53 percent of Wisconsin
homeowners plan on seeing their houses increase in value over
the next 12 months, while an even 50 percent say their home's
value has already gone up in the last year.
While 30 percent of homeowners said their house
lost value within the last year, only 6 percent said they expect
it to drop again in the next 12 months.
“The survey results show that there’s a healthy
level of optimism among homeowners in Wisconsin. With home
prices generally trending upward, very few expect that the value
of their home will decline next year, which is great news,” said
Lori Day, head of Mortgage Sales, Illinois, BMO Harris Bank.
“Current home prices may mean it’s the perfect time to purchase
for some prospective buyers.”
The study also asked Wisconsin residents who have
mortgages about the forecast for interest rates. Seventy-five
percent said they believe the rates will go up, while only 6
percent believe there will be a drop within the next five years.
Twenty-six percent said they have had to delay or
end their home-buying plans because of market activity, but an
equal percent said they have actually sped up their plans
because of the activity.
“Housing affordability remains historically very
attractive, despite rising home prices and borrowing costs
coming off their lows,” said Michael Gregory, head of U.S.
economics for BMO Capital Markets. “As a result, there continues
to be decent demand for homes, assisted from firming household
On a national level, the study found 59 percent
of Americans believe the value of their homes will go up in the
next year, with the same proportion saying it has already gone
up in the last 12 months.