Greater Milwaukee Association of Realtors: July MLS statistics analysis – affordability leads to higher home sales

Contact: Mike Ruzicka

414.778.4929

August 10, 2009 – Milwaukee County marked the 4th straight month of higher sales than a year ago, according to housing statistics released by Metro MLS, Inc. today.

The increase in sales has been fueled by a marked improvement in affordability in the county, and seems to have spread to adjoining counties as well.

Milwaukee County registered a 10.4% increase for July 2009 over July 2008; as well as a 2.9% increase over sales in July of 2007, when the sub-prime bubble burst and the seeds of the recession in real estate began.

Waukesha County saw an increase of 15.7% over July 2008, after several months of double-digit decreases in sales.

Washington County went down slightly by 0.7% in July, after increasing 12.8% in June; and Ozaukee County was down 4.9% in July, after showing a 63.9% gain in June.

Racine County registered its second positive sales month of the year with 1.3%. However, Kenosha County came in with a 5.2% decrease over July 2008.

Walworth County was off the most in Southeastern Wisconsin, 29.2%, indicating that prices have not leveled out to the point that buyers are willing to become active.

Affordability has come to the region not only in the form of reduced prices. The $8,000 home buyer tax credit, historically low interest rates, and a plentiful supply of homes to choose from, have also played a large role in getting buyers back into the market.

The July 2009 statistics add to a trend that seems to indicate the real estate market in Southeastern Wisconsin has put the majority of the housing correction behind it.

A word of caution for sellers, however, is that they should not begin to think the market is turning into a seller’s market; it is still more advantageous for buyers.

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.

Today’s market, while a clear improvement over a year ago, will almost certainly experience ups and downs, on a block-by-block and community-by-community level, until the overall economy recovers.

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.