Contact: Mike Ruzicka
414.870.1876
September 10, 2010 – As expected, sales in the Metropolitan Milwaukee market declined 36.9% in August compared to August 2009, according to housing statistics released today by Metro MLS, Inc. There were 946 sales in August compared to 1,500 a year ago.
The GMAR expects home sales to follow the economy and employment into the fall, rising at a slow pace. However, the inevitable increase in interest rates will should make buyers “get off the fence” and decide on a purchase, leading to a larger increase in sales.
Statistically speaking, August’s decrease in sales will probably continue through the rest of the year, because sales in the remaining months of 2010 are expected to be less than during the 3rd and 4th quarters of 2009, which were fueled by the first-time buyer tax credit (Note: the credit was expected to have ended on November 30th, 2009).
The negativity of the fall elections cannot be overlooked as a factor in causing buyers to stand on the sidelines as well. With candidates charging that their opponent’s policies will harm the state and regional economies, buyers may be waiting to see what happens in the election before pursuing their home purchase.
For August: Milwaukee County was down 40.6% in August, and is down 6.7% for the year. Waukesha County had a 24.9% decrease in sales, but is up 0.7% for 2010. Likewise, Ozaukee County, which has been up in double digits most of the year, saw a 21.6% decrease in sales in August, but is still up 11.4% for the year. Washington County felt the end of the tax credits as well, with a 54.5% decrease in sales in August, and the county is down 7.9% for 2010.
Listing & Sales Activity for Metropolitan Milwaukee
Thru August 2007 — 2008 — 2009 — 2010
Listings: 39,731 — 34,382 — 31,560 — 17,790
Sales: 17,231 — 14,119 — 14,854 — 7,369
Inventory has slowed a bit in August settling in at 14.7-months, after jumping from 8.9-months in June to 15.8-months in July.
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) offer an historically unprecedented opportunity for buyers.
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.
