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Episode Transcript
Prefer to listen? Watch the full episode above. If you'd rather read along, here's an edited transcript of the conversation.
Introduction
Mike Cottrell:
Welcome to the Equitable Bank Smart Start Podcast. I'm Mike Cottrell, Senior Vice President of Commercial Lending at The Equitable Bank and President of the Rental Property Association of Wisconsin.
Joining me today is Marcus Auerbach, owner of On Point Realty Group and an Executive Board Member of the Rental Property Association of Wisconsin. Marcus provides valuable insight into Wisconsin's housing market, and today we're discussing what buyers and sellers should know about today's real estate market.
Why Housing Inventory Remains Low
Mike:
How does today's inventory compare to previous years?
Marcus:
We've had a housing shortage for well over a decade. The challenge isn't simply the number of buyers and sellers—it's the number of people looking for homes compared to the number of homes available.
New construction has increased somewhat, but not nearly enough to meet demand. That's why inventory continues to remain historically low across Wisconsin.
Why Homeowners Aren't Moving
Mike:
Many homeowners seem to be staying in their homes longer. What's driving that?
Marcus:
Mortgage rates play a huge role.
Many homeowners have mortgages around 2.75%. Moving today often means buying a more expensive home while financing it at 6% or higher. Those "golden handcuffs" make it difficult for people to justify moving, which further limits inventory.
Advice for First-Time Homebuyers
Mike:
How challenging is today's market for first-time buyers?
Marcus:
The biggest challenge isn't just competition—it's waiting too long.
Many buyers hope prices will decline, but we've consistently seen home values appreciate around 6–7% annually. Meanwhile rents continue to rise, making homeownership feel even further out of reach.
Education is critical. Once buyers understand the local market and know what to expect, they're much more confident making an offer.
What Sellers Need to Know
Mike:
What advice would you give homeowners preparing to sell?
Marcus:
Pricing matters.
Some sellers assume every home will sell immediately because it's a strong market. But homes priced too high often sit longer, require price reductions, and ultimately sell for less than they might have if they were priced correctly from the beginning.
Wisconsin Continues to Attract New Residents
Mike:
Are you still seeing buyers moving into Wisconsin?
Marcus:
Yes.
For the past several years, Wisconsin has experienced positive migration, with more people moving into the state than leaving.
Many buyers cite Wisconsin's quality of life, family connections, job opportunities, and overall lifestyle as reasons they're relocating here.
Current Buyer Trends
Marcus also discusses several trends shaping today's market, including:
- Cash buyers becoming more common
- Increased competition for well-priced homes
- Downsizing among retirees
- Continued appreciation despite fewer overall home sales
Final Takeaway
Mike:
If there's one message buyers should remember today, what would it be?
Marcus:
Every situation is different, but don't wait simply because you're hoping the market changes dramatically.
The market has slowed in transaction volume, but home values have continued to rise. Working with trusted professionals and making decisions based on your personal goals—not headlines—is often the best approach.