Metro Home Sales Up 7.7% in 3rd Quarter

Source: GMAR realtor email
Date: 9 October 2009

Sales in the 4-county metropolitan Milwaukee area were up 7.7% in September according to housing statistics released by Metro MLS, Inc. today. Milwaukee County had higher sales in September than at the same point a year ago for the 6th straight month, increasing 6.8%. Waukesha, Washington and Ozaukee Counties joined Milwaukee County in positive sales territory in September as well, with 6.4%, 19.3% and 3.7% increases, respectively. The main driver in sales strength is a decrease in prices from a year ago. Prices in Milwaukee County are down 22.2% from the 3rd quarter in 2008, Waukesha is down 4.8%, Ozaukee is down 10.7%, and Washington is down 10.4%. The average sales price in Milwaukee County going down 22.2% has lead to strong sales among first-time buyers with the federal tax credit in mind.

In suburban counties, the average sale price decrease of 5%-10% is due to a hot first-time buyer market – properties roughly under $200,000 – with little, to no, discounting. However, homes at higher levels have come down more in price, but have had fewer sales. Nonetheless, the bottom line is price decreases have translated into more sales. Price decreases combined with low interest rates, abundant choices, and the tax credit, make it an outstanding market for buyers to take advantage of right now.

The remaining counties in southeastern Wisconsin were mixed:

Racine County saw a 6.8% fall off in September, after a strong 15.7% increase in August. Average sales prices in the County are down 12.2% from the 3rd quarter of 2008. Kenosha County made an impressive comeback in September with a 12.1% gain, after a 12.7 decrease in sales in August. Kenosha, too, saw a 15.5% decrease in prices from the 3rd quarter of 2008. Walworth County has finally seen its first positive sales numbers in months, with an 18.1% increase in September. Walworth also saw a 14.6% decrease in average sales prices in the 3rd quarter. Again, the decrease in average sales price is probably tempered by strong first-time buyer homes. The decrease in prices at the upper end is probably much higher.

Listings (4-County Metro Milwaukee)

• There were 2,658 new listings in September. 5.7% less than September 2008 and 14.0% less than September 2007.

• The 25,589 listings through the 3rd quarter of 2009 are 9.4% less than 2008’s 28,234, and 20.8% behind 2007’s 32,317.

Sales (4-County Metro Milwaukee)

• Sales of 1,306 units in September were up 7.7% compared to September 2008’s 1,213 and 11.0% ahead of 2007’s 1,177.

• Sales in the third quarter of 2009, totaling 10,657, were down 1.5% compared to a year ago (2008 = 10,823) and 20.1% below 2007 (13,330).