CBEI Central Wisconsin Fall 2020 Report

Housing and Construction Table 9 National Affordability Index (Third Quarter 2020)

Years

Median Price Existing Single Family Home

Mortgage Rate

Monthly P and I Payment

Payment as % of Income

Median Family Income

Qualifying Income

Composite

2019

274,600 316,200

4.04 2.95

1054 1,060

16

78,964 81,219

50,592 50,880

156.1 159.6

Sept. 2020

15.7

Description: • Composite Index measures affordability. An index of 150 means that a family earning the median family income has 150% of income necessary to quality for a conventional loan covering 80% of a median price family home. Analysis: • The median price of an existing home increased significantly over the last year while mortgage rates fell to historic lows. Affordability as measured by the composite index was little changed over the last year with home prices and interest rates moving in opposite directions.

Table 10 Median Home Prices and Home Sales

Wisconsin

Marathon

Portage

Wood

2020 Q3

% ∆ Yr. Ago

2020 Q3

% ∆ Yr. Ago

2020 Q3

% ∆ Yr. Ago

2020 Q3

% ∆ Yr. Ago

Median Home Prices

$230,100

12.8% $192,866 11.9% $217,193 17.12% $134,333 7.3%

Home Sales

28,479 10.6% 632

12.0% 281

-1.0% 293

8.0%

Table 11 Residential Construction: Stevens Point and Plover Area

Estimated Value of New Homes (000)

Number of Housing Units

Alteration Permits Issued

Estimated Value of Alterations (000)

Permits Issued

2020 Q3

2019 Q3

2020 Q3

% ∆ Yr. Ago

2020 Q3

2019 Q3

2020 Q3

2019 Q3

2020 Q3

% ∆ Yr. Ago

18

26 $6,173.84 -8.50% 19

24

569

443 $5,078.46 76.58%

Analysis: • The increase in both the number and estimated value of alterations may have been the result of the pandemic as households cancelled vacation plans and instead, stayed home engaging in home improvement projects.

Table 12 Nonresidential Construction: Stevens Point - Plover Area

Estimated Value of New Structures (000)

Alteration of Business Permits Issued

Estimated Value of Alterations (000)

Permits Issued

2020 Q3

2019 Q3

2020 Q3 503.0

% ∆ Yr. Ago -97.2%

2020 Q3

2019 Q3

2020 Q3

% ∆ Yr. Ago

3

14

157

121

$ 39,549.09

163.42%

Analysis: • While nonresidential construction numbers can be volatile from year to year, the steep decline in the number and value of new structures for the third quarter suggests that the pandemic may have played a role. Similar to residential construction, there was a dramatic increase in the estimated value of alterations this year over third quarter 2019.

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Center for Business and Economic Insight

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