Wisconsin Economies: Are We Affected by Mortgage Problems

In the January addition of Wisconsin Real Estate magazine there is a great article showing how localized real estate really is. A new report issued by the U.S. Conference of Mayors states that the "fallout from the mortgage crisis will be minimal in Wisconsin compared to much of the rest of the country". Even though the economy is declining, the decline is not coming from Wisconsin. Most of the major metropolitian areas in Wiscosin are projected to have product growth. They are Appleton (2.7%), Eau Claire (2.8%), Fond du Lac (3.1%), Green Bay (2.9%), La Crosse (3.1%), Madison (3.4%), and Milwaukee (2.5%). They also believe that west central and northern Wisconsin are not expected to lose any ground due to the mortgage crisis.

Wisconsin's, especially Madison's, economy is diversified and continues to grow at a steady pace. Our economy has historically been very even. This keeps Wisconsin from booming in a really good market and a bubble from bursting in a bad market. As projected by the Wisconsin Department of Revenue the"higher growth rates in Madison, Appleton, Green Bay and La Crosse metro areas" will offset any slower growth in other regions like Milwaukee and Racine.

Facts:

• Wisconsin's foreclosure rate is half the national average.
• Wisconsin consumers have an above average credit score and lower debt levels.
• Wisconsin technology, and other business sectors, are expanding and creating wealth.
• Export sales are up 50% from 2006 numbers.

Overall, the economy will be strong and with interest rates at near historic lows, the real estate market is projected to be a good year. What a great Buyer's market in 2008!