WAUKESHA — Mike
Ruzicka, president of the Greater Milwaukee Association of Realtors,
is happy with how October ended — with a 6.2 increase in home sales
— but is concerned about possible future federal tax laws and how
they may negatively affect the housing market.
In his report
on Monday, Ruzicka said Realtors are concerned about how proposed
federal tax laws could affect the industry, including by increasing
the standard deduction; he said it could make the mortgage interest
deduction less appealing. Also, Ruzicka wrote that eliminating the
deduction of state income and property taxes could lead to a net
increase in federal taxes for property owners in the state.
to the double whammy of tax increases and decreased MID use,
property values are expected to decline 10 percent (after suffering
a huge decline just a few years ago); not to mention the impact on
the social benefits of homeownership,” he wrote.
Milwaukee Association of Realtors is encouraging constituents to
contact their elected officials and estimated that the provisions in
the tax bill will reduce property values by the following amounts
(by congressional district):
1st Cong Dist. (Rep. Ryan) = $18,920
4th Cong Dist. (Rep. Moore) = $13,580
5th Cong Dist. (Rep. Sensenbrenner) = $21,630
6th Cong Dist. (Rep. Grothman) = $15,690
October home sales
in the four-county metro Milwaukee area, which includes Waukesha,
Washington, Ozaukee and Milwaukee counties, home sales increased 6.2
percent compared to October 2016. They also bounced back from the
1.1 decline in September.
that the uptick in sales was somewhat surprising because the market
has lacked enough homes in the “sweet spot,” of under $300,000.
October, 76 percent of the homes sold were under $300,000, due to an
increase in listings in three of the four metropolitan counties,” he
increased 12.2 percent in Milwaukee County in October compared to
October 2016 and Waukesha County increased 3.8 percent for the same
periods. Ozaukee County declined 7.4 percent and Washington County
went down 6.1 percent in October 2017 when compared to October 2016.
increased in Milwaukee County at 10.4 percent, Washington County at
17.1 and Ozaukee County at 6.3 percent in October compared to
October of last year. Waukesha County declined 5.9 percent.
in listings was easily gobbled up due to strong demand that is
continuing into the fall months. The underpinnings of the local
economy are solid, with employment, interest rates, and lending all
performing well. The strong economy is producing interest in home
buying, particularly among first-time buyers and millennials, who
brokers estimate comprise about 40 percent of the market this year,”