R
acine, WI — The city's housing market is expected to continue its upward trend in 2025, with prices projected to rise due to its proximity to Chicago and Milwaukee. According to Daryl Fairweather, chief economist at Redfin, the Racine market is "hotter than the rest of Wisconsin" and more difficult to navigate than last year, with homes selling faster and for higher prices.

    The county's real estate market remains a seller's market, characterized by high demand and low inventory. In December 2024, the median home sold for $204,999, a 3.8% increase from the previous year. Listings are also flying off the market quickly, with an average time on the market of just 33 days.

    Patrick Vandenberg with Signature Team Realtors notes that existing home sales have declined significantly since 2022, largely due to consumers being hesitant to trade low-interest rates for higher ones. However, he remains optimistic about new construction, citing a potential rebound in multifamily housing starts and the arrival of D.R. Horton, which plans to add 100 new homes to the area.

    Redfin predicts that home prices will increase by 4% in 2025, while mortgage rates will remain around 7%. The company also forecasts a renter's market, with more Americans choosing or being forced into renting due to affordability concerns. In Racine County, rental costs have seen an "explosion," and Vandenberg hopes that changes in leadership may bring positive developments in the coming years.

    Certified financial planner Skip Riley advises many homeowners to stay put rather than trying to buy or sell, citing a shortage of housing and higher interest rates making it difficult for younger buyers to secure their first home. With inflation and high interest rates persisting, many are left to settle for less-than-ideal homes due to the market's circumstances.