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HOME Buyer,Owner &Renter

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Serving Southeastern Wisconsin & Northern Il inois

AUG./SEPT. 2020

REAL ESTATE • RENTALS • NEW HOME DEVELOPMENT • BUILDERS

Home renovations With people across the country spending more time at home than ever before, home improvement projects are increasingly becoming top of mind for homeowners. Despite the financial difficulties brought on by the pandemic, 77% of homeowners say their home renovation budget for 2020 is the same or greater than last year, according to a survey by the National Association of Realtors. Whether it’s finally having time to make their dream home improvements a reality or preparing their homes to sell, homeowners are optimistic about completing renovations this year. NAR’s survey found the top three home renovations that homeowners hope to complete within their budgets in 2020 are a new bathroom (28%); new kitchen (23%); and fencing in their yards (21%). “In an ever-changing world, homeownership provides sanctuary, safety and financial security,” said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, Calif. “As we celebrate Homeownership Month, we recognize that buying a home is one of the most rewarding transactions people will make in their lifetimes. Making your home your dream home through remodeling

to fit the ‘new normal’ of homeownership

STOCK PHOTO Home Buyer

projects takes time and patience, but Realtors and homeowners alike recognize the feelings of accomplishment, satisfaction and potentially higher home values that come with it.” The survey also revealed homeowners are attuned to how the pandemic may influence prospective buyers’ preferences. A fencedin yard, for example, the third most popular project for 2020, didn’t even make the top 10 Realtor-recommended projects in NAR’s 2019 Remodeling Impact Report, which examined a variety of remodeling projects and their appeal,

value and potential return on investment. A further 21% of homeowners expect new additions such as a home office, gym or other space will offer one of the greatest returns on investment - another project that Realtors would not have recommended as a top priority based on 2019 data. “Homeownership looks different now than it did years or even months ago - our homes have become offices, gyms and studios, so we’re seeing a shift in priority of the types of features that homeowners and potential buyers want,” Malta said. “Homeowners must keep in mind that some projects that sound appealing during a pandemic have not historically provided as much value when selling a home.” Still, some renovation priorities remain unchanged: Kitchen and bathroom upgrades and remodels were highly recommended by Realtors in 2019, and continue to top most homeowners’ lists now. “Not only will improvements like updated kitchens for a better cooking experience be of interest to potential home buyers, but renovations such as adding space for a home office or gym will increasingly be in higher demand as we follow social distancing guidelines.” (BPT)

Pandemic impact less than expected

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HOME BUYER, OWNER & RENTER

AUG./SEPT. 2020

Home sales down compared to 2019, but they’ve bounced back from May’s plunge Wisconsin’s housing market performed far better than expected in June, according to officials with the Wisconsin Realtors Association. Existing home sales were down 4.5% compared to that same month in 2019, and median prices rose 3.6% to $222,000 over the same 12-month period, according to the most recent analysis of the state housing market by the WRA. On a year-to-date basis, home sales for the first half of 2020 were 4.9% lower than the first six months of 2019, and median prices were up 7.6% to $209,900. “This is better than we expected given the COVID-induced slide in sales we saw last month,” said WRA Chairman Steve Beers, of Keefe Real Estate in Lake Geneva. Sales slid sharply in May, dropping 24.3% compared to May 2019, so being down just

4.5% is a big improvement. Beers qualified the comparison by noting that sales in June last year were actually somewhat weak, dropping 7.7% from June 2018. “It’s important to remember that we’re comparing closed sales with the same month a year earlier, so the weak performance in June 2019 makes this past month’s drop in sales smaller,” he said. Beers pointed out the strong pre-coronavirus start to the year helped moderate the total decline in sales in the first half of the year in all regions of the state. Comparing the first six months of 2020 with the first half of 2019, sales fell at 0.7% in the Central region, declined 1.5% in the West region, and dropped 2% in the North region. The more densely populated urban Northeast, South Central and Southeast regions saw their sales in the first half of 2020 fall between 3.9% and 7.2% relative to the first half of 2019. “The bigger cities have been hit harder by the pandemic, which may help explain these differences,” Beers said. Locally, Walworth County actually experienced a double-digit increase in home sales when compared with June 2019. Sales this year were up 213 over 193 in 2019 in the county. The number of sales in Racine and

Kenosha counties was down slightly – 2.5% and 1.7%, respectively. Median prices in the region were up in Racine County (6.8% to $205,000) and in Walworth County (6.4% to $249,000); and steady in Kenosha County at $200,000.

Other factors

“It’s good to see June sales come in above our expectations,” said WRA President and CEO Michael Theo. “Improvements to the economy and a consistent decline of mortgage rates into record-low territory has definitely softened the blow from the pandemic.” The state unemployment rate dropped significantly, falling from 12.1% in May to 8.5% in June. In addition, the 30-year fixed-rate mortgage dropped for the sixth straight month. The rate was at 3.62% in January and fell to 3.16% in June, which is yet another record low. “Low mortgage rates have also kept Wisconsin housing affordable,” said Theo. The Wisconsin Housing Affordability index measures the fraction of the median-priced home that a buyer with median family income qualifies to purchase, assuming a 20 percent

See SALES DOWN, Page 7

Do the math

20% down. With a 740 credit score at today’s MI rates, your monthly MI payment would be about $115, which is added to your monthly mortgage payment until the MI can be cancelled. MI typically cancels after five years. With home price appreciation, today’s $275,000 home will likely cost more in the years ahead. This will also have an impact on the necessary down payment and length of time required to save for it. There are other variables in the equation too, such as interest rates. As interest rates rise, so too will the cost of mortgage financing. Not all MI is the same. Importantly, so-called “FHA Loans” are government-backed loans insured by the Federal Housing Administration versus a private insurer. These mortgages require a slightly higher down payment, the insurance is permanent, and the monthly premiums generally cannot be canceled.

STOCK PHOTO Home Buyer

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Make sure you do the math. There are many online mortgage calculators that can help. Check out lowdownpaymentfacts.org to learn more.

(BPT)

HOME BUYER, OWNER & RENTER

could, which helps them take advantage of historic low rates and keep some of their savings intact,” said Lindsey Johnson, President of U.S. Mortgage Insurers. If you are one of these renters looking to buy your first home but don’t have 20% down, don’t worry, you are not alone. According to the National Association of Realtors, the median down payment in 2019 was 6% for first-time buyers. It is true you can qualify for a conventional mortgage with a down payment as small as 3% of the purchase price. In today’s market, it could take a family earning the national median income up to 21 years to save 20%, according to calculations by USMI. How can buying now save you money later? Consider you want to purchase a $275,000 home. When you account for closing costs (about 3% of the sales price), a 5% down payment is $13,750 versus $63,250 in cash for

AUG./SEPT. 2020

At a time when the strength of the U.S. economy and personal finance is on most renters’ minds, low down payment mortgage options are more appealing than ever. With mortgage interest rates being at historic lows, it is possible to qualify for a home loan while keeping a rainy day fund. Private mortgage insurance has been around for decades and helped over 1.3 million homebuyers last year. It is a temporary cost that allows for a down payment as small as 3% of the purchase price. While some borrowers wait until they save 20% for a down payment, the added years of saving can translate to higher interest rates and more expensive home prices. “Renters who are on the hunt to buy should do the math and consider what is best for them, because many times they will find that buying with a low down payment insured mortgage is in their best interest. It may enable them to attain homeownership sooner than they otherwise

Buying a home now may be more affordable and save some cash

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AUG./SEPT. 2020

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HOME AND PROPERTY SALES Here is a listing of recent single-family home, condominium and vacant land sales in Kenosha, Racine and Walworth counties. The information is provided through the Multiple Listing Service.

RACINE COUNTY SINGLE-FAMILY HOMES Burlington • 140 Paul St................................. $ 135,100 • 29824 Greenleaf Dr.................... $ 122,000 • 340 Origen St............................. $ 139,900 • 1441 Isabel Ln............................ $ 371,000 • 6430 Yahnke Rd......................... $ 450,000 Waterford • 8518 Francis Way....................... $ 367,500 • 8521 Fox River Rd...................... $ 390,000 • 401 Fairview Cir......................... $ 379,900 • 28827 Kramer Dr........................ $ 405,000 • 8024 Marjorie Dr........................ $ 396,000 Franksville • 560 Shirley Dr............................ $ 260,000 • 22020 7 Mile W Rd..................... $ 475,000 • 4245 Highway H........................... $ 72,700 Union Grove • 1305 Center St........................... $ 175,000 Racine • 937 Center St............................... $ 15,500 • 1806 N Main St............................ $ 60,000 • 4214 21st St................................. $ 60,000 Sturtevant • 3625 92nd Pl.............................. $ 266,000 • 9044 Chicory Creek Dr............... $ 289,900 • 3618 94th St............................... $ 300,000 • 8308 Majestic Hills Dr................ $ 335,000 Wind Lake • 8450 Anna Ave........................... $ 575,000

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HOME BUYER, OWNER & RENTER

AUG./SEPT. 2020

CONDOS Waterford • 7501 Wind Lake Rd 5................. $ 330,000 Wind Point • 41 E Campus Ct......................... $ 255,000 Mount Pleasant • 5726 Cambridge Ln 2................. $ 115,000 • 5843 Cambridge Cir 8................ $ 107,000 • 3027 Meyer Ct 3......................... $ 124,000 • 1211 N Sunnyslope Dr 104........ $ 124,000 Waterford • 300 Foxwood Dr 107.................. $ 180,000 • 240 Marina Ct. 3......................... $ 230,000

VACANT LAND Racine • 4526 Sina Ln Lt61........................ $ 27,900 • Lt #1, 3 Mile Rd............................ $ 90,000 Waterford • Lt30 Willow Bend Dr..................... $ 43,900

• 6623 Hillstone Ct.......................... $ 95,000 • 1606 Rookery Glen.................... $ 172,500 Burlington • 1224 Olivia Trl............................... $ 55,000 Kansasville • 3006 Oakcrest Dr Lt3................... $ 72,400

WALWORTH COUNTY SINGLE-FAMILY HOMES Lake Geneva • N3270 Narcissus Rd.................... $ 45,000 • N3313 Sycamore Rd.................. $ 126,000 Delavan • 307 Breezy St............................... $ 93,500 • 130 S 4th St............................... $ 125,000 • 324 S Second St........................ $ 130,000 • 1618 Polk Ave............................ $ 140,000 Elkhorn • W5855 Mariner Hills Ct.............. $ 118,000 • N7380 Mariner Hills Cir.............. $ 130,000 • W4727 Pebble Dr....................... $ 495,000 • W5123 Bay Shore Dr.................. $ 479,000 Genoa City • 206 Sterling Ct........................... $ 130,000 • N1142 Walnut Rd....................... $ 160,000 • 44 Grove Ave.............................. $ 135,000 Williams Bay • 521 Wilmette Rd......................... $ 665,000 East Troy • N8736 Wilmers Point Ln............. $ 623,000 Fontana • 650 S Main St............................. $ 575,000 Sharon • 125 W School St......................... $ 145,000 Whitewater • N7407 Kettle Moraine Dr............ $ 140,000 Darien • 223 W Fremont St...................... $ 163,900

CONDOS Elkhorn • W4945 County Road ES 99......... $ 28,000 Lake Geneva • 123 Center St 308........................ $ 75,000 • 1790 Cottage Dr 7-01................. $ 122,000 • 111 Center St 423...................... $ 120,000 East Troy • W1104 Miramar Rd 1D............... $ 108,000 Lyons • 1480 Liberty Ln 190................... $ 125,000 Genoa City • 405 Parker Dr A.......................... $ 150,000

• 1400 Hunters Ridge Dr 97......... $ 159,000 Fontana • 350 County Road B 8................. $ 145,000 Whitewater • 215 E Clay St 43........................ $ 155,000 Delavan • 830 S Second St 13................... $ 150,000 • 628 Westbury Ln 2..................... $ 163,500

VACANT LAND Lake Geneva • Lt0 Muirfield Ct 5-12..................... $ 17,500 Whitewater • Lt6 Kettle Moraine Dr Blk 1.......... $ 20,000 East Troy • Lt26 Brassie Dr............................ $ 18,500 Delavan • Lt15 Smith Ln............................... $ 19,500 • Lt35 Country View Dr................... $ 33,000 Williams Bay • Lt4 Oakwood St............................ $ 37,000 Elkhorn • Lt1 Baywood Hills Sub................. $ 63,000

KENOSHA COUNTY SINGLE-FAMILY HOMES Salem • 115 W Elm St............................... $ 75,000 • 27626 115th St........................... $ 120,000 • 31113 75th St............................. $ 124,900 Wheatland • 8131 336th Ave.......................... $ 127,000 Twin Lakes • 162 Sunset Ct............................ $ 134,900 • 540 Park Ave.............................. $ 150,000 Trevor • 27325 115th St........................... $ 149,000

CONDOS Silver Lake • 402 S Cogswell Dr 18................. $ 156,813 Salem • 25111 87th St 6.......................... $ 155,000

VACANT LAND Trevor • Lt29 256th Ave............................. $ 29,000 Pleasant Prairie • Lt0 8th Ave................................... $ 30,000 Twin Lakes • Lt 44 Laurie Ln............................. $ 50,000 • Lt30 91st Ct.................................. $ 79,000

SERVICE •CLASSIFIEDS