— Wisconsin home prices continued to climb going into the peak homebuying season, according to the latest Wisconsin Realtors Association report.
With fewer homes available for sale in the state, monthly home sales in April were 32.5 percent lower over the year. A total of 4,303 homes were sold last month, compared to 6,376 in April 2022. Over the same period, total statewide listings fell 20.7 percent, from 19,130 to 15,167, the report shows.
Meanwhile, the state’s median home price rose 6.8 percent year-over-year, from $265,000 to $283,000.
Still, WRA President and CEO Michael Theo notes home prices are rising at a slower pace than last year.
“In fact, the median price of Wisconsin homes sold in 2022 was 10.4% higher than 2021 median prices,” he said in the report. “In contrast, the housing price appreciation rate for the first four months of 2023 was only 7% higher than the first four months of 2022, suggesting demand pressure is easing.”
But the group says a “very strong seller’s advantage” persists in the market, with only 2.5 months of available supply in April. That’s the same amount as a year earlier, the report shows. WRA notes that’s well below the standard six months of supply that would suggest a balanced market.
One factor driving the low inventory levels is higher mortgage rates, according to WRA Board of Directors Chair Joe Horning. He notes current homeowners considering buying another home most likely have “very favorable mortgage rates,” especially those that refinanced in recent years.
“Rates have more than doubled since hitting bottom at the end of 2020, and homeowners may be reluctant to give up those record-low rates to buy another home,” he said.
See the full report here: https://www.wra.org/HSRApr2023/
— This week’s episode of “WisBusiness: the Podcast” is with Zach Brandon, president of the Greater Madison Chamber of Commerce.
He discusses top takeaways from the chamber’s recent spring IceBreaker event, as well as demographic changes such as the recent influx of Gen Z residents to the area.
“I think there’s a real opportunity that’s developing in Madison, and I hope that the rest of the state sees it,” Brandon said. “I think all too often we let our politics divide our economics. Wisconsin is a series of micro-economies … But what’s good for one is good for all when it comes to talent.”
According to Brandon, Madison’s national reputation as an up-and-coming innovation hub continues to improve. He shares his perspective on how to leverage that success, as well as the challenge posed by the ongoing workforce shortage.
He also discusses the opportunities presented by federal funding for “tech hubs” around the country, arguing Madison is “on the cusp of not just accelerating, but being accelerated” by this initiative.
“That’s a real opportunity if we think about it from a place of abundance instead of scarcity … for the state as a whole to gain,” he said. “And yes, Madison will be a big piece of it, maybe the tip of the spear, but the rest of the state will benefit from it.”
Listen to the podcast here: https://www.wisbusiness.com/2023/wisbusiness-the-podcast-with-zach-brandon-greater-madison-chamber-of-commerce/
See the full list of WisBusiness.com podcasts: https://www.wisbusiness.com/category/podcast/
Register for a June 14 WisPolitics.com event in Washington, D.C., being held in conjunction with the chamber’s “DC Meets Madison” reception: https://www.wispolitics.com/event/june-14-dc-breakfast-media-panel-examines-battleground-wisconsin
— WEDC would have to find $4 million in its existing appropriations to cover efforts to attract and retain talent, under a motion the Joint Finance Committee approved along party lines.
The GOP motion, approved 12-4, would require half of that money to target veterans.
In doing so, the committee rejected Dem. Gov. Tony Evers’ proposal to add $10 million in general purpose revenue over the next two years to the Wisconsin Economic Development Corp.’s efforts as Wisconsin faces a continued worker shortage.
See more at WisPolitics.com: https://www.wispolitics.com/2023/thu-pm-update-jfc-republicans-want-wedc-to-fund-efforts-to-attract-retain-talent-with-existing-appropriations
— Ahead of its vote on the budget, JFC unanimously signed off on a WEDC package giving a manufacturer $5.6 million in refundable tax credits to help expand its Milton plant.
The committee made one tweak to the plan by shrinking the footprint of the enterprise zone that the Wisconsin Economic Development Corp. used as the vehicle for the package it extended to Charter Next Generation Inc.
Using the enterprise zone approach, WEDC certifies businesses as eligible via a contract that specifies the maximum amount of credits a business can earn through completing various requirements such as job creation or retention. The contracts can last up to 12 years.
Along with the expansion at its Milton plant, Charter expects to see growth at its Wisconsin locations in Bloomer, Rhinelander and Superior.
The committee’s action shrinks the footprint for the enterprise zone to the areas around the facilities Charter Next Generation owns and leases in Wisconsin.
The firm, which produces specialty films used in flexible packaging, plans to expand operations with the addition of two new buildings totaling 350,000 square feet at its Milton plant. According to WEDC, the project includes a capital investment by the company of $270 million over eight years between the buildings, equipment and infrastructure. The project is expected to add 341 new full-time jobs.
See the LFB papers on the credit:
— WEDC is providing a $250,000 grant to help restore a Thiensville restaurant called The Cheel that burned down in 2020.
The agency yesterday announced the Community Development Investment grant for the village. Before being destroyed by a fire in November 2020, the restaurant served farm-to-table Nepalese food out of a 130-year-old building, the release shows.
Construction plans for the rebuild include doubling the restaurant’s capacity along with expanding a dining room area, a bar, patio, event space and a venue for live music.
WEDC says the business has been “a catalyst for economic growth” in the village, having invested in two other restaurants in the area, created 25 jobs and led the development of three commercial properties. The Cheel has also played a role in local events like the village’s farmer’s market, the Best Dam Blues Festival and a food truck gathering called Trucks in the Park.
“Things are lining up, the sun is shining, the team is excited, and I am excited to bring Nepalese food back to the community and continue to give back,” said owner and chef Barkha Limbu Daily.
See more on the project:
— Major League Baseball Commissioner Rob Manfred says he’s confident that Milwaukee and public officials will find a way to meet their obligation to fund upkeep at the Brewers ballpark.
But he declined to weigh in on the possibility of the team leaving if they don’t.
“Look, it’s an obligation, and I just don’t believe that’s going to happen,” Manfred told reporters yesterday. “I really believe everyone understands there’s a funding obligation that needs to be met that this ballpark is a community asset and they’re not going to let that great community asset fall into decay because the fans love the place.”
Manfred was in Milwaukee as state and local officials continue to mull the possibility of using public funds to cover maintenance costs at American Family Field. Dem Gov. Tony Evers proposed giving $290 million in one-time funds to the district board overseeing the stadium. That money would be invested with the proceeds used to cover annual upkeep costs. In exchange, the team would sign a lease through December 2043, 13 years beyond its current agreement.
Assembly Speaker Robin Vos, R-Rochester, has said the guv’s plan is dead and Republicans will consider other approaches to providing public money.
The same day Manfred visited the stadium, the Milwaukee County Board voted unanimously to express opposition to using Milwaukee County tax dollars for the stadium renovations.
Manfred told reporters he hadn’t heard about the vote. He also repeatedly stressed there is a public obligation to cover upkeep at the stadium.
The lease the team signed requires the Southeast Wisconsin Professional Baseball Park District to cover improvements required by Major League Baseball. In the past, the public funds have been used for costs such as adding a ribbon scoreboard and LED stadium lights.
The district and team jointly own the stadium.
“The only issue on the table is how they are going to figure out how to fund that obligation,” Manfred said.
— State and local officials in Racine County have announced the completion of the $50 million land purchase deal with Microsoft.
Officials earlier this year announced Microsoft plans to build a $1 billion data center campus on a 315-acre parcel of land in Mount Pleasant. In a release yesterday, the village, Racine County, the Racine County Economic Development Corporation, WEDC and the Milwaukee 7 said the land deal has been finalized.
“This is an exciting next step in the process of welcoming Microsoft’s new data center development to Racine County,” County Executive Jonathan Delagrave said in a statement. “This project offers an incredible growth opportunity for our community.”
Site preparation for the project could begin later this year, according to the release.
#TOP STORIES#
# Weather station expansion seeks to aid Wisconsin farmers
# MLB commissioner Rob Manfred confident Brewers will win public funds for stadium upkeep
# Starbucks workers report attempted ‘union busting’ ahead of election
#TOPICS#
# AGRIBUSINESS
– Deteriorating rural infrastructure puts Wisconsin’s agricultural industry at risk
http://wisconsinagconnection.com/story-state.php?Id=526&yr=2023
# CONSTRUCTION
– Sen. Baldwin announces nearly $10M for Wisconsin brownfields cleanup
# ECONOMY
– Fighting for more time: New eviction defense program in La Crosse aims to keep tenants in their homes
# EDUCATION
– Most UW System campuses have budget deficits in the millions
# ENVIRONMENT
– Sampling shows more deer tested positive for chronic wasting disease last year
– Madison lakes are seeing blue-green algae already. Here’s why.
# FOOD AND BEVERAGE
– Electric Lime owner developing steakhouse for former Louise’s space in downtown Milwaukee
# LABOR
– TruStage workers extend strike over unfair labor practices
# LEGAL
– Wisconsin lawmaker says his bar where overdose victims bought drugs isn’t ‘bad establishment’
# MANUFACTURING
– Master Lock closing longtime Milwaukee plant, impacting hundreds of employees
– Lakefront Brewery leads charge for sustainable brewing, asks state for electric vehicle infrastructure
– Master Lock parent company ‘footprint improvements,’ including planned shutdown of Milwaukee plant, aim to boost profits up to $75 million
# POLITICS
– Wisconsin budget committee rejects Evers’ plan to make tax agents permanent
– Finance committee hands WisconsinEye network $10 million endowment
# REAL ESTATE
– Microsoft buys Mount Pleasant land for its $1 billion data center
– Eau Claire region’s home sales down 38% last month
# RETAIL
– David’s Bridal filed a layoff notice this week. Here’s what that means for Wisconsin workers, stores
# SPORTS
– Money, not size of community, was key to getting the NFL draft in Green Bay
– MLB to tell Brewers stadium upgrades are needed or Milwaukee will lose big league baseball
# TOURISM
– Future unclear for Hampton Inn & Suites in downtown Milwaukee after sudden closure
# PRESS RELEASES
<i>See these and other press releases:
https://www.wisbusiness.com/press-releases/ </i>
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