MILWAUKEE, WI--(Marketwired - Jul 30, 2014) -
- Half of homeowners also say their value has risen over the last 12 months
- Prospective buyers are divided on how market activity is impacting their timeline
- BMO Economics: Housing affordability remains historically very attractive
The steady rise of home prices is reflected in the optimism about home values among Wisconsin homeowners, according to a study released today by BMO Harris Bank. The survey found that 53 percent of homeowners in Wisconsin believe they home's value will rise in the next 12 months, and a similar number (50 percent) say it has gone up over the past year. Three in 10 say it has decreased in the last year, but only 6 percent anticipate it going down in coming year.
In Milwaukee, the numbers are similar. Half (50 percent) believe the value of their home will go up in the next year, and 46 percent said it rose over the past year, although 44 percent say there was a downward trend on their home's value last year. Milwaukee residents are optimistic about the coming year with only 8 percent expecting a decrease.
"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. We encourage those who are house hunting to speak to a mortgage banker about ensure they have a sound budget in place, and getting pre-approved to make the experience that much smoother ."
When Wisconsin residents with mortgages were asked about the forecast for interest rates:
- Three quarters said they expect rates to go up, with 58 percent expecting a small increase and 16 percent anticipating a large increase
- Only 6 percent believe that rates will decrease over the next five years
- One in five believe that rates will stay the same
"Housing affordability remains historically very attractive, despite rising home prices and borrowing costs coming off their lows. As a result, there continues to be decent demand for homes, assisted from firming household formation," said Michael Gregory, Head of U.S. Economics, BMO Capital Markets. "Although overall U.S. housing activity is experiencing slower momentum than we saw earlier in the recovery, positive developments such as the recent down-drift in mortgage rates and solid job numbers should give an added boost to housing."
At the national level, the survey found:
- Six in 10 (59 percent) Americans believe the value of their home will rise in the next 12 months, and the same proportion say it has risen over the last year
- 29 percent of those looking to buy say they have sped up their timeline to buy a home as a result of market activity, and the same proportion say it has caused them to delay or give up
- Six in 10 (59) percent of those with a mortgage say they expect interest rates to rise over the next five years
Survey results cited in this report are from a Pollara survey commissioned by BMO Harris Bank using interviews with an online sample of 2,500 Americans, including 250 from the state of Wisconsin, conducted between April 1 st and 7 th , 2014. The margin of error for a probability sample of 2,500 is ± 1.96%, and 250 is ± 6.2% 19 times out of 20.
For more trends, tips and tools to help you plan for your financial future, including buying a home, visit bmoharris.com/YourFinancialLife .
About BMO Harris Bank BMO Harris Bank provides a broad range of personal banking products and solutions through more than 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are provided by BMO Harris Bank N.A. and are subject to bank or credit approval. BMO Harris ® and BMO Harris Bank® are trade names used by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and CDN $582 billion in assets (as of April 30, 2014).
Media Contact: Alexis Brown alexis.brown@bmo.com 416-461-6543
