Lake Country This Month

Page 4A • FREEMAN & ENTERPRISE LAKE COUNTRY MARCH 2015 Our staff is available 24/7 to provide immediate intervention with the expertise and legal acumen to assist with the many needs of our clients. Bucher Law Group, LLC, has over 100 years legal experience, with four staff attorneys to assist you with every legal need. We offer assistance in criminal defense, real estate, probate, litigation, worker's compensation, social security disability and family court matters. Back row - Paul Bucher, Paul Kntzer, Thomas Simon, Steven Lownik Front row - Jodie Massey, Susan Calvanico, Deborah Mueller We are located in Delafield at 355 Austin Circle, Suite 110. To schedule a free consultation, please contact us at (262) 303-4916, or visit our website at www.bucherlawgroup.com BUILDING BOOM BUILDING BOOM Waukesha County second in state in new home construction By Katherine Michalets Freeman Staff U nder sunny skies earlier this month, workers installed a roof on a home under construction in Oconomowoc despite the frigid wind to help keep up with the increasing demand for new home construction in Wisconsin — but especially in Waukesha County. "Everything is looking up; people are back out there," said Paul Bielinski, chief operating officer of Bielinski Homes. "People are interested in new homes." In fact, Bielinski said, the industry is starting to see a property lot shortage, which was predicted but companies did- n't feel comfortable preventing by invest- ing more money during the economic downturn. Kirsten Lee Villegas, state executive officer of the Wisconsin Builders Associ- ation, said statewide there has been an 18 percent increase in the amount of single- family home permits being pulled when comparing January 2015 to January 2014. The leading county for new permits is Dane County, followed by Waukesha County and then Brown County, she said. In Waukesha County in January, there was a decrease of permits pulled com- pared to January 2014. Last month, 35 single-family home permits were obtained in Waukesha County, compared to 56 in January 2014, according to data from the U.S Bureau of Census. In Dane County, 60 single-family home permits were pulled in January 2015 compared to 45 the year before and in Milwaukee County there were four permits pulled in January 2015, five less than January 2014. When comparing all of 2014 to 2013 the county had a sizeable increase; however, there was a total of 705 single-family home permits pulled in 2014, 48 more than 2013's total of 657, according to the U.S. Bureau of Census. In comparison, Dane County had 1,102 permits pulled in 2014 and 1,111 in 2013. Milwaukee County had 138 permits pulled in 2014 and 154 in 2013. Overall the state had a decrease of 4 percent in sin- gle-family home permits pulled in 2014 compared to 2013. Villegas said the housing market for existing homes has become more stable, which in turn creates more confidence in homeowners to list their homes for sale to start construction on a new home. Also, land developers are "taking the plunge" to invest and develop land, which they sat on for years during the economic downturn, she said. "It's cause and effect," Villegas said. "When one thing happens it triggers another thing and another thing." Other drivers for new home construc- tion in Dane and Waukesha counties, she said, are job growth and available land to develop. Matt Neumann, president of Neumann Companies, Inc., said as the weather improves people start to get out and actively search for their next home. Neumann Companies is active in more than 20 communities, he said, and intends to construct nine new develop- ments in 2015. Woodridge Estates in the Town of Delafield off Maple Avenue and Highway KE is a 2015 Parade of Homes site with homes being constructed right now, Neumann said. The first phase has nearly sold out so another phase is planned. "We feel real good about the demand," Neumann said, adding that "really good is based on the rotten years we had dur- ing the recession." New permits for single-family homes, he said, are still 50 percent lower than where they were during the peak prior to the recession, but that's better than when they bottomed out at 80 percent beneath that amount, he said. "I don't think we are going to get back to the peak; there was overbuilding," Neumann said. Bielinski said his company is working on various new developments and in 2015 four existing projects will add a new phase to meet demand. Bielinski Homes is also constructing a single-family devel- opment in Dousman and three condo pro- jects in Waukesha, he said. Additionally, Bielinksi said banks are interested again in offering financing. Another plus of the rebounding home construction market is the additional hires that businesses like Neumann Companies have been able to make. Neu- mann said his company has tripled in size since 2011. Including the different divisions of Neumann Companies, about 65 to 70 people are employed by them, he said, not including subcontractors. Municipalities are also fairly eager to work with developers, Bielinski said. "We have gotten a good reception from the municipalities; they are happy to see this start up again," he said. "They are pretty much letting us in with open arms." Katherine Michalets/Freeman Staff Workers install a roof on a home under construction on Prairie Creek Boulevard off High- way Z in Oconomowoc on March 4. Crews were working hard to keep up with the increased demand for new homes despite this winter's cold weather. 'Inventory is ridiculously By Katherine Michalets Freeman Staff WAUKESHA — For the first time in years, homebuyers are placing competing offers on homes, real estate agent Bob Lar- son with First Weber Group in Waukesha said recently. With "buyers coming out of the wood- work" and going to open houses, Larson said now is a great time to put a home on the market. It might not be as good a time to buy, however, because home inventory is very low. Mike Ruzicka, president of the Greater Milwaukee Association of Realtors, said inventory is really tight currently with about 4.3 months' worth of listings. In Waukesha County, there is only about 4.1 months' worth of inventory, according to data from the GMAR. In February, there were 2,098 active listings in the county, and of those, 485 had a contingent offer, result- ing in 1,613 available listings. In addition, 398 homes sold in February, based on a 12- month average to limit seasonal disparity. Winter tends to be a tight time for inven- tory, Ruzicka said, with some homes sit- ting for three months or more. Many fami- lies choose to wait until closer to the end of the school year to list their properties, leaving mostly people relocating in the search for a home. However at the 4.3 percent level, "inven- tory is ridiculously tight," Ruzicka said. Larson said homes that have been sitting on the market for 30 to 90 days are being snatched up by buyers. "It's an excellent time to put a home on the market," he said. "Interest rates are still low." As confidence grows in the economy, people are more willing to make the invest- ment in a home, Larson said. "We are not going to find an opportuni- ty in our future where interest rates are going to be this low," he said. While buyers may be increasing their home search efforts in March with the intent to be settled in a house by sum- mer, sellers are in a pause mode, Larson said. "There are a lot of first-time homebuy- ers; they are not desperate," he said. "If nothing else they are frustrated because there is not much to look at." According to the GMAR, January home inventory in Milwaukee and Ozau- kee counties was down 5.5 percent and 2.8 percent respectively, but Waukesha County was up 3.3 percent. Washington County was up even more at 13.8 percent. Buyers still thinking frugally Six months of inventory is the tipping point for the market to go from a seller's market to a buyer's market, Ruzicka said. Despite the statistics pointing to the cur- rent conditions being a seller's market, Ruzicka said it doesn't fit those traditional parameters because with the economy still recovering the mentality of buyers remains fairly frugal. Ruzicka said buyers are offering 10 per- cent off the assessed value of the home, which may already be less than the asking price. "There is a huge gap of what buyers and sellers are thinking," he said. "It's taking them a little time to come together." Homes that are in move-in condition and a good school district are also getting top dollar and all four counties in the metro Milwaukee area, Washington, Waukesha, Milwaukee and Ozaukee, are seeing an increase in home prices, Ruzicka said. "I think it is going to be a pretty good year for sales and price appreciation," Ruzicka said. New home listings unlikely to pick up until spring TIGHT' Katherine Michalets/Freeman Staff A "Sold" sign hangs in front of a home on Niagara Road in Oconomowoc on March 4. Home inventory remains low and likely won't increase until spring, resulting in competitive bidding on homes for sale, according to industry experts. Skye Financial joins Hartland Chamber HARTLAND — The Hartland Chamber of Commerce welcomed a new member recently. The husband and wife team of Shawn and Tamara MacDonald, Skye Financial Services, Inc., left, were presented with a membership plaque from ambassadors Megan Sarnowski, First Weber Group Realtors, and Scott Heyerdahl, Premier Properties Ltd. For the past 15 years, Skye Financial Services has been assisting individuals and families with their personal financial deci- sions in the Lake Country area. The relocation to Hartland last year offers an opportunity to join the Hartland chamber to help support and promote area businesses. Skye Financial Services, Inc. is a family-owned firm that was formed with the goal of providing clients the opportunity to explore and define their financial destiny. Skye Financial Services is located at 720 Industrial Court Suite 8 in Hartland and can be reached at 262-646-5448. Visit www.skyefinancialser- vice.com for more information.

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