The upcoming state and local budget cuts will create more distressed home owners, increase the challenges for home sellers, hurt some real estate brokerages, lead to an increase in apartment rents, and extend our buyer’s market.
The budget cuts will also hurt contractors who build new homes.
We’ve already covered how the pending budget cuts are causing some buyers to suspend their plans to purchase a home. The political events in Wisconsin are also decreasing the demand for new home construction, which has already been operating at very low levels for the past several years. The budget cuts will certainly extend “the builder’s market” we have in Dane County.
Also keep in mind the budget cuts will lead to an increase in distressed home owners. Due to the budget cuts, we’ll see more bank-owned and short sale properties on the horizon. Foreclosures are a big source of competition for new home construction. New home construction will continue to struggle for as long as Dane County foreclosure levels remain high.
We’ve now covered how 5 different players in the Dane County real estate market will be negatively impacted by pending budget cuts. On the flip side we’ll see some players who will benefit from the cuts. We’ll be posting about these players soon.