Greater Milwaukee Association of Realtors: April 2009 MLS statistics analysis

Contact: Mike Ruzicka

414.778.4929

May 11, 2009 – Sales were down in just about every county in southeastern Wisconsin in April compared to a year ago, according to housing statistics released by Metro MLS, Inc. today. However, brokers report that sales activity has picked up in recent weeks, which should result in more sales in the next 30- to 60-days, similar to the activity we saw in February, especially among first-time buyers, which we are seeing in the form of closed sales in April’s data.

Buyers recognize the “perfect storm” in the housing market, consisting of: 1) historically low interest rates; 2) a plentiful supply of homes; 3) discounted prices; and 4) the $8,000 federal tax credit; as a unique opportunity to buy a home and build future equity when the market improves.

Although interest and inquiries regarding the $8,000 tax credit for first-time home buyers is having an impact on the market, many brokers report that too many buyers are not aware of the tax credit or unsure if they qualify.

While today’s market has settled down some and is advantageous to buyers, it is not flat and will experience ups and downs on a neighborhood-by-neighborhood basis, until the overall economy recovers. This is particularly true given the lag between an economic recovery that many are indicating is beginning now and increased employment, which may be several months off.

Sellers are still facing pressure to reduce their prices, as buyers take their time reviewing several properties before making an offer that may be below the asking price. However, if a property is priced correctly, sellers are countering with small price reductions, if any.

In these confusing times, consumers should remember to “Start With A REALTOR®” before consulting with a lender or other housing professional.

The Greater Milwaukee Association of REALTORS® is a 4,000-member strong professional organization dedicated to providing information, services and products to its members to help them help their clients in buying and selling real estate.

* For a local perspective on the MLS stats, please see a list of brokers below to contact.

Highlights from the April 2009 MLS Statistics Report for the 4-county Metropolitan area:

Sales

* Sales of 1,140 units in April were down 2% compared to March 2008’s 1,163 and 23.6% behind 2007’s 1,493.

Listings

* There were 3,182 new listings in April, marking the 21st straight month of decreasing listings, in year-to-year comparisons.

* The 3,182 listings in April of 2009 are 13.1% less than 2008’s 3,661, and 20.7% behind 2007’s 4,014.

Note: In comparing 2007 numbers to today it is important to remember that, while the market was slowing in 2007, it was fairly healthy in the spring; the market did not begin its serious slowdown until July of that year, when the sub-prime market crashed.

Market fundamentals

* Interest rates are better than they have been in decades. Buyers can expect rates in the range of 5.125% for a 30-year fixed mortgage and 4.625% for a 15-year fixed note.

* The MMAC Economic Trends Report states that, “Job indicators typically lag the economic cycle, suggesting that there may continue to be some rough going in the local employment trend in coming months.” according to Bret Mayborne, MMAC’s economic research director.

SE Wisconsin County-by-County Analysis

Milwaukee County: The county offers a bright spot in the market as sales increased 12.7% over 2008 (728 vs. 646 units). This is due in large part to the decrease in prices seen in the county – and particularly the City of Milwaukee – prompting first-time buyers and investors to jump in.

This is a trend that we expect to continue and eventually spread to suburban communities and counties.

Listings in the county were down 15% compared to 2008 (1,864 vs. 2,194), and 21.4% vs. 2007 (2,373).

Waukesha County: Sales in Waukesha were down 25.4% compared to 2008 (253 vs. 339), and down 40.6% from 2007’s number of 426.

Listings of 876 were down 7.5% compared to 947 in 2008, and down 15% compared to 1,030 in 2007.

Ozaukee County: The county saw a decrease in sales of 9.2% (59 vs. 65) in 2009 vs. 2008, and a 28% decline vs. 2007’s 82 units.

Listings were down 16.1% in 2009 compared to 2008, and down 34.7% compared to 2007 (162, 193 and 248, respectively).

Washington County: Sales were down 11.5% to 100 units in 2009, vs. 113 units in 2008, and down 39.8% compared to 2007’s 166.

Listings in April were down 15.3% to 277 vs. 327 in 2008, and off 23.7% from 2007’s 363.

Racine County: Sales were down 18.1% compared to 2008 (136 vs. 166), and down 37.3% from 2007’s number of 217.

Listings of 402 were down 14.1% compared to 468 in 2008, and down 19.4% compared to 499 in 2007.

Kenosha County: The county saw a decrease in sales of 27.1% (105 vs. 144) in 2009 vs. 2008, and a 39% decline vs. 2007’s 172 units.

Listings were down 16% in 2009 compared to 2008, and down 29% compared to 2007 (399, 475 and 562, respectively).

Walworth County: Sales were down 26.5% to 75 units in 2009, vs. 102 units in 2008, and down 34.2% compared to 2007’s 114.

Listings in April were down 9.4% to 222 vs. 245 in 2008, and off 18.1% from 2007’s 271.

For more local perspective on the market, please contact:

Kathy Domagalski, 2009 GMAR Chairwoman

Coldwell Banker Residential Brokerage

(Primary area of business: Ozaukee County & Milwaukee County)

414-791-1602

Dave Schmidt, Jr., 2009 MLS President

Dave Schmidt Realty

(Primary area of business: Southern Milwaukee County)

414-881-6809

Bob Larson, General Manager

First Weber Group, Realtors

(Primary area of business: Waukesha County)

262-544-8560 or 262-522-7773

Beth Jaworski

Shorewest Realtors

(Primary area of business: Milwaukee, Wauwatosa)

414-520-8555

Tammy Maddente, Executive Vice President

First Weber Group

(Primary area of business: East Side, North Shore)

414-962-3000

Kristin Prange

Premiere Properties, LTD

(Primary area of business: Lakes area of Waukesha County)

262-367-9900

Michael Voss, 2009 Racine Board of REALTORS President Prudential Southeast Realty

(Primary area of business: Racine County)

262- 554-9752