Greater Milwaukee Association of REALTORS: Metro home sales down in July but up for 2010

Contact: Mike Ruzicka

414.870.1876

August 10, 2010 – As expected, sales in the Metropolitan Milwaukee market declined 45.3% in July compared to July 2009, according to housing statistics released today by Metro MLS, Inc.

Brokers have been expecting the current slowdown in business in these summer months after the federal tax credits ended on April 30th. Most reported that accepted offers slowed down dramatically in May and June but picked up slightly in late July and the first week of August. This means closings recorded by MLS would also decrease; explaining the 45.3% decrease in July.

For the first seven months of the year homes sales in the 4-county area were up 2.4%, compared to 2009, fueled by the federal homebuyer tax credits at the beginning of the year.

Milwaukee County was down 46.8% in July, and is down 0.3% for the year. Waukesha County had a 44.1% decrease in sales, but is still up 5.4% for 2010. Likewise, Ozaukee County, which has been up in double digits all year, saw a 39.8% decrease in sales in July, but is up 18.2% for the year. Washington County felt the end of the tax credits as well, with a 34.9% decrease in sales in July, but the county is up 2.3% for 2010.

Listing & Sales Activity for Metropolitan Milwaukee Thru July

Years : 2007 \ 2008 \ 2009 \ 2010

Listings: 25,760 \ 22,442 \ 20,231 \ 20,171

Sales : 10,381 \ 8,158 \ 7,851 \ 8,042

Inventory has escalated as well, from 8.9-months in June to 15.8-months in July.

The GMAR expects the decrease in sales to continue into August as buyers take their time getting back into the market. Statistically speaking, the decrease in sales will probably continue through the rest of the year, because sales in the remaining months of 2010 will probably be fewer than during the 3rd and 4th quarters of 2009, that were fueled by the first-time buyer tax credit (Note: the credit was expected to have ended on November 30th, 2009).

For the rest of the year, as long as the economy continues to stabilize, the market conditions that are present in Southeastern Wisconsin (consisting of extremely favorable interest rates, low house prices, and plenty of inventory) should be respectable for home sellers, but it will remain a buyers’ market.

In these confusing times, buyers and sellers should remember to “Start With A REALTOR®” before beginning their home search or 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.