January brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in the first half of the year due to ongoing inventory concerns. Continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.
New Listings in the Milwaukee region decreased 7.5 percent to 1,492. Pending Sales were down 45.7 percent to 548. Inventory levels fell 17.7 percent to 4,427 units.
Prices continued to gain traction. The Median Sales Price increased 10.6 percent to $188,000. Days on Market was down 15.1 percent to 73 days. Sellers were encouraged as Months Supply of Inventory was down 19.4 percent to 2.9 months.
In case you missed it, we have a new U.S. president. In his first hour in office, the .25 percentage point rate cut on mortgage insurance premiums for loans backed by the Federal Housing Administration (FHA) was removed, setting the table for what should be an interesting presidential term for real estate policy. FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.
All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. You can follow this link: Metro MLS Market Updates or visit www.metromls.com.
If you're interested in selling or looking to buy a new home please contact us at Cove Realty