Number of Days on Market Down for 2017
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December 2017 The number of homes for sale, days on market and months of supply were all down in year-over-year comparisons in a majority of the country for the entirety of 2017, as was housing affordability. And although total sales volumes were mixed, prices were consistently up in most markets. Buyers may not benefit from higher prices, but sellers do, and there should be more listing activity by more confident sellers in 2018. At least that would be the most viable prediction for an economic landscape pointing toward improved conditions for sellers. New Listings in the Milwaukee region decreased 1.8 percent to 748. Pending Sales were down 50.4 percent to 507. Inventory levels fell 9.6 percent to 3,701 units. Prices continued to gain traction. The Median Sales Price increased 3.9 percent to $195,000. Days on Market was down 23.6 percent to 55 days. Sellers were encouraged as Months Supply of Inventory was down 7.7 percent to 2.4 months. Unemployment rates have remained low throughout 2017, and wages have shown improvement, though not always to levels that match home price increases. Yet housing demand remained incredibly strong in 2017, even in the face of higher mortgage rates that are likely to increase further in 2018. Home building and selling professionals are both cautiously optimistic for the year ahead. Housing and economic indicators give reason for this optimism, with or without new federal tax legislation November 2017 The facts of residential real estate have remained consistent in 2017. In year - over- year comparisons, the number of homes for sale has been fewer in most locales, and homes have been selling in fewer days for higher prices. This hasn't always been true, but it has been a common enough storyline to make it an overarching trend for the year. New Listings in the Milwaukee region decreased 6.9 percent to 1,155. Pending Sales were down 53.6 percent to 604. Inventory levels fell 8.8 percent to 4,613 units. Prices continued to gain traction. The Median Sales Price increased 8.1 percent to $200,000. Days on Market was down 26.2 percent to 48 days. Sellers were encouraged as Months Supply of Inventory was down 6.3 percent to 3.0 months. New tax legislation could have ramifications on housing. The White House believes that the tax reform bill will have a small impact on home prices, lowering them by less than 4 percent, and could conceivably boost homeownership. The National Association of REALTORS® has stated that eliminating the mortgage interest deduction could hurt housing, as the doubled standard deduction would reduce the desire to take out a mortgage and itemize the interest associated with it, thus reducing demand. This is a developing story. August 2017 August tends to mark the waning of housing activity ahead of the school year. Not all buyers and sellers have children, but there are enough parents that do not want to uproot their children during the school year to historically create a natural market cool down before any actual temperature change. Competition is expected to remain fierce for available listings. Savvy sellers and buyers know that deals can be made well into the school months, as household formations take on many shapes and sizes. New Listings in the Milwaukee region increased 4.0 percent to 2,384. Pending Sales were down 52.1 percent to 860. Inventory levels fell 4.0 percent to 6,038 units. Prices continued to gain traction. The Median Sales Price increased 4.9 percent to $215,000. Days on Market was down 25.0 percent to 42 days. Sellers were encouraged as Months Supply of Inventory was down 2.5 percent to 3.9 months. The prevailing trends lasted through summer. This was expected, since there have not been any major changes in the economy that would affect housing. Factors such as wage growth, unemployment and mortgage rates have all been stable. Every locality has its unique challenges, but the whole of residential real estate is in good shape. Recent manufacturing data is showing demand for housing construction materials and supplies, which may help lift the ongoing low inventory situation in 2018. July 2017 How long can the residential real estate market go on like this? We are about two years into a national trend of dropping housing supply and increasing median sales prices. There are some regional variations to the story, but the shift to a predominantly seller's market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes are routinely off the market after a single day. It is evident that a favorable economy keeps hungry buyers in the chase. New Listings in the Milwaukee region decreased 1.5 percent to 2,292. Pending Sales were down 54.9 percent to 811. Inventory levels fell 4.4 percent to 6,067 units. Prices continued to gain traction. The Median Sales Price increased 10.2 percent to $216,000. Days on Market was down 33.9 percent to 39 days. Sellers were encouraged as Months Supply of Inventory was down 2.4 percent to 4.0 months. Although the unemployment rate remains unchanged at its favorable national 4.3 percent rate, wage growth has not been rising at the steady clip that would be expected in an improving economy. Sales activity manages to keep churning along despite looming shortages in new construction. Lower price ranges are starting to feel the effects of the supply and demand gap, as first-time buyers scramble to get offers in at an increasing pace. All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. June 2017 There has been a general slowdown in sales across the country, and this cannot be blamed on negative economic news. Unemployment remains low and wage growth, though nothing to overly celebrate, has held steady or increased for several years in a row. There is strong demand for home buying, emphasized by higher prices and multiple offers on homes for sale in many submarkets. As has been the case for month after month - and now year after year - low inventory is the primary culprit for any sales malaise rather than lack of offers. New Listings in the Milwaukee region decreased 4.6 percent to 2,651. Pending Sales were down 55.9 percent to 921. Inventory levels fell 0.9 percent to 6,202 units. Prices continued to gain traction. The Median Sales Price increased 7.3 percent to $220,000. Days on Market was down 30.5 percent to 41 days. Buyers felt empowered as Months Supply of Inventory was up 2.5 percent to 4.1 months. With job creation increasing and mortgage rates remaining low, the pull toward homeownership is expected to continue. Yet housing starts have been drifting lower, and some are beginning to worry that a more serious housing shortage could be in the cards if new construction and building permit applications continue to come in lower in year-over-year comparisons while demand remains high. Homebuilder confidence suggests otherwise, so predictions of a gloomy future should be curbed for the time being. All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. March 2017 We can comfortably consider the first quarter to have been a good start for residential real estate in 2017. There was certainly plenty to worry over when the year began. Aside from new national leadership in Washington, DC, and the policy shifts that can occur during such transitions, there was also the matter of continuous low housing supply, steadily rising mortgage rates and everincreasing home prices. Nevertheless, sales have held their own in year-overyear comparisons and should improve during the busiest months of the real estate sales cycle. New Listings in the Milwaukee region increased 2.3 percent to 2,565. Pending Sales were down 49.4 percent to 901. Inventory levels fell 4.7 percent to 5,486 units. Prices continued to gain traction. The Median Sales Price increased 8.9 percent to $192,500. Days on Market was down 22.7 percent to 68 days. Sellers were encouraged as Months Supply of Inventory was down 5.3 percent to 3.6 months. The U.S. economy has improved for several quarters in a row, which has helped wage growth and retail consumption increase in year-over-year comparisons. Couple that with an unemployment rate that has been holding steady or dropping both nationally and in many localities, and consumer confidence is on the rise. As the economy improves, home sales tend to go up. It isn't much more complex than that right now. Rising mortgage rates could slow growth eventually, but rate increases should be thought of as little more than a byproduct of a stronger economy and stronger demand. All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. You February 2017 The start of the year ushered in a wave of good news about a hot stock market, higher wages and an active home sales environment. At the same time, housing prices have continued to rise, and the low inventory situation and affordability crunch has been particularly hard on first-time buyers struggling to get into the market. Nevertheless, buyer activity is easily outpacing seller activity in much of the country, culminating in relatively quick sales and low supply. Demand definitely remained strong this month. New Listings in the Milwaukee region decreased 3.7 percent to 1,783. Pending Sales were down 50.5 percent to 648. Inventory levels fell 12.1 percent to 4,820 units. Prices continued to gain traction. The Median Sales Price increased 4.3 percent to $182,000. Days on Market was down 19.6 percent to 78 days. Sellers were encouraged as Months Supply of Inventory was down 13.9 percent to 3.1 months. Unemployment has reached pre-recession levels, and Americans remain optimistic about finding quality employment. This matters because job growth and higher paychecks fuel home purchases. Unfortunately, that won't matter for potential buyers if price appreciation outpaces income growth and if mortgage rates continue their upward trend. Sellers are getting a generous number of offers in this market. The worry for sellers then becomes that there will not be a generous number of homes to choose from when they become buyers. All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. |
December 2016
Wisconsin's housing market ended a record-setting year with solid growth, pushing annual sales to an all-time high and driving prices up well above the rate of inflation. December home sales rose 4.1 percent compared to December 2015, and median prices rose 7.4 percent to $161,000. Home sales for the year 2016 increased 6.1 percent compared to 2015, making this the strongest year for sales since the WRA recalibrated its tracking system in 2005.
September 2016
As anticipated at the outset of the year, demand has remained high through the first three quarters of 2016, propping up sales and prices despite heavy reductions in inventory and months of supply across the country. With rental prices and employment opportunities in a consistent climb, year-over-year increases in home buying are probable for the rest of the year but not guaranteed.
New Listings in the Milwaukee region decreased 1.3 percent to 1,991. Pending Sales were down 33.9 percent to 994. Inventory levels fell 9.5 percent to 6,584 units.
Prices continued to gain traction. The Median Sales Price increased 12.3 percent to $202,000. Days on Market was down 7.4 percent to 63 days. Sellers were encouraged as Months Supply of Inventory was down 10.2 percent to 4.4 months.
In general, today's demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, intriguingly low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.
Wisconsin's housing market ended a record-setting year with solid growth, pushing annual sales to an all-time high and driving prices up well above the rate of inflation. December home sales rose 4.1 percent compared to December 2015, and median prices rose 7.4 percent to $161,000. Home sales for the year 2016 increased 6.1 percent compared to 2015, making this the strongest year for sales since the WRA recalibrated its tracking system in 2005.
September 2016
As anticipated at the outset of the year, demand has remained high through the first three quarters of 2016, propping up sales and prices despite heavy reductions in inventory and months of supply across the country. With rental prices and employment opportunities in a consistent climb, year-over-year increases in home buying are probable for the rest of the year but not guaranteed.
New Listings in the Milwaukee region decreased 1.3 percent to 1,991. Pending Sales were down 33.9 percent to 994. Inventory levels fell 9.5 percent to 6,584 units.
Prices continued to gain traction. The Median Sales Price increased 12.3 percent to $202,000. Days on Market was down 7.4 percent to 63 days. Sellers were encouraged as Months Supply of Inventory was down 10.2 percent to 4.4 months.
In general, today's demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, intriguingly low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.
July 18, 2016
Wisconsin’s housing market in the first half of 2016 was the strongest since before the Great Recession, according to the most recent analysis of the state existing home market conducted by the Wisconsin REALTORS® Association (WRA). Home sales in the first six months of this year were up 5.5 percent over the first half of 2015 and median prices were 4.5 percent higher than the first half of last year, at $162,000 in 2016 compared to $155,000 in 2015. Comparing just the month of June, home sales were up 3.4 percent this year over last and prices were 3.8 percent higher in 2016.
“June is typically our strongest month for sales and the market this year continues to be impressive,” said K.C. Maurer, WRA board chairman. June is the traditional start to summer and in a typical year, about 11.5 percent of the annual sales in the state are closed in that month alone. “Wisconsin saw more sales closed in June of 2016 than in any month since before 2005,” said Maurer. Equally impressive, he noted 2016 had the strongest second quarter and first half home sales since 2005. “Homes are moving quickly,” noted Maurer. “The average time on the market fell to 86 days in June, which is very fast.” The last time days on the market were that low was August of 2005. The lowest level was just 81 days in June of that year. “With homes selling this quickly, buyers need to have their financing lined up so they can move quickly when opportunities present themselves,” Maurer said.
Every region saw its sales grow in the first half of the year compared to the first six months of 2015 with the pace of growth ranging from just under 3 percent to 7.2 percent. For the month of June, sales were up relative to June of last year in every region except the West, where they dropped 5.4 percent. The drop in the West is partly due to the fact that the West region was coming off of two very strong years where June sales had grown 40.8 percent over the 2013 to 2015 period. “For the West region to be close to last year’s sales volume still reflects a very strong market in that region,” said Maurer.
The median price in the state increased 3.8 percent to $174,900 in June 2016, again compared to June of last year, which represents the highest June median price since before 2005. “The last time we saw June prices hit $170,000 was 2007, just before the recession began,” said WRA President and CEO Michael Theo. “Home prices have been rising since the spring of 2012. Our prices are 23.2 percent higher than where they were in June of 2012, clearly outpacing inflation over that period,” said Theo. Inflation as measured by the growth in the Consumer Price Index grew about 15.5 percent between June 2012 and May of this year.
“Our tight inventories have fueled the upward pressure on prices,” said Theo. The state had just 46,550 homes available for sale in June, which given the average monthly sales over the past 12 months, represents just 7.1 months of available supply. This is far below peak inventory levels which stood at over 72,000 in August of 2010. The supply of homes for sale is now 13.9 percent below the levels of one year ago. “We would have seen stronger sales in many areas of the state had there been more homes to buy,” he said. The North, Central and Northeast regions have ample supply at between 8.1 and 14.7 months, but markets are much tighter in the other three regions (Southeast, South Central and West) where they range between 5.2 and 6.2 months of available homes. “It’s important to remember that even given these trends, housing affordability remains high, supported in part by excellent opportunities in the mortgage market,” said Theo. Mortgage rates sat at 3.57 percent on a 30-year fixed-rate mortgage in June. “An experienced REALTOR® can still help you find a great home even in this tight market, but buyers need to be prepared to move quickly because good opportunities don’t sit on the market very long,” said Theo.
About the WRA
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 14,000 real estate brokers, sales people and affiliates statewide. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter. All data collected by Wisconsin REALTORS® Association are subject to revision if more complete data become available. Beginning in 2010, all historical sales volume and median price data at the county level have been re-benchmarked using the Techmark system which accesses MLS data directly and in real time. The Wisconsin Housing Affordability Index is updated monthly with the most recent data on median housing prices, mortgage rates, and estimated median family income data for Wisconsin. Data on state foreclosure activity is compiled by Dr. Russ Kashian at the University of Wisconsin–Whitewater.
Wisconsin’s housing market in the first half of 2016 was the strongest since before the Great Recession, according to the most recent analysis of the state existing home market conducted by the Wisconsin REALTORS® Association (WRA). Home sales in the first six months of this year were up 5.5 percent over the first half of 2015 and median prices were 4.5 percent higher than the first half of last year, at $162,000 in 2016 compared to $155,000 in 2015. Comparing just the month of June, home sales were up 3.4 percent this year over last and prices were 3.8 percent higher in 2016.
“June is typically our strongest month for sales and the market this year continues to be impressive,” said K.C. Maurer, WRA board chairman. June is the traditional start to summer and in a typical year, about 11.5 percent of the annual sales in the state are closed in that month alone. “Wisconsin saw more sales closed in June of 2016 than in any month since before 2005,” said Maurer. Equally impressive, he noted 2016 had the strongest second quarter and first half home sales since 2005. “Homes are moving quickly,” noted Maurer. “The average time on the market fell to 86 days in June, which is very fast.” The last time days on the market were that low was August of 2005. The lowest level was just 81 days in June of that year. “With homes selling this quickly, buyers need to have their financing lined up so they can move quickly when opportunities present themselves,” Maurer said.
Every region saw its sales grow in the first half of the year compared to the first six months of 2015 with the pace of growth ranging from just under 3 percent to 7.2 percent. For the month of June, sales were up relative to June of last year in every region except the West, where they dropped 5.4 percent. The drop in the West is partly due to the fact that the West region was coming off of two very strong years where June sales had grown 40.8 percent over the 2013 to 2015 period. “For the West region to be close to last year’s sales volume still reflects a very strong market in that region,” said Maurer.
The median price in the state increased 3.8 percent to $174,900 in June 2016, again compared to June of last year, which represents the highest June median price since before 2005. “The last time we saw June prices hit $170,000 was 2007, just before the recession began,” said WRA President and CEO Michael Theo. “Home prices have been rising since the spring of 2012. Our prices are 23.2 percent higher than where they were in June of 2012, clearly outpacing inflation over that period,” said Theo. Inflation as measured by the growth in the Consumer Price Index grew about 15.5 percent between June 2012 and May of this year.
“Our tight inventories have fueled the upward pressure on prices,” said Theo. The state had just 46,550 homes available for sale in June, which given the average monthly sales over the past 12 months, represents just 7.1 months of available supply. This is far below peak inventory levels which stood at over 72,000 in August of 2010. The supply of homes for sale is now 13.9 percent below the levels of one year ago. “We would have seen stronger sales in many areas of the state had there been more homes to buy,” he said. The North, Central and Northeast regions have ample supply at between 8.1 and 14.7 months, but markets are much tighter in the other three regions (Southeast, South Central and West) where they range between 5.2 and 6.2 months of available homes. “It’s important to remember that even given these trends, housing affordability remains high, supported in part by excellent opportunities in the mortgage market,” said Theo. Mortgage rates sat at 3.57 percent on a 30-year fixed-rate mortgage in June. “An experienced REALTOR® can still help you find a great home even in this tight market, but buyers need to be prepared to move quickly because good opportunities don’t sit on the market very long,” said Theo.
About the WRA
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 14,000 real estate brokers, sales people and affiliates statewide. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter. All data collected by Wisconsin REALTORS® Association are subject to revision if more complete data become available. Beginning in 2010, all historical sales volume and median price data at the county level have been re-benchmarked using the Techmark system which accesses MLS data directly and in real time. The Wisconsin Housing Affordability Index is updated monthly with the most recent data on median housing prices, mortgage rates, and estimated median family income data for Wisconsin. Data on state foreclosure activity is compiled by Dr. Russ Kashian at the University of Wisconsin–Whitewater.
