Greater Milwaukee Association of REALTORS: March 2009 MLS statistics analysis

Contact: Mike Ruzicka

414.778.4929

April 13, 2009 – Sales were down 9% in March compared to a year ago, according to housing statistics released by Metro MLS, Inc. today. The smaller decrease in sales compared to many months in the last 12-months appears to show signs of the market leveling out as buyers become a little more active.

The federal economic stimulus’ $8,000 tax credit for first-time home buyers seems to be having an impact on interest in home purchases, according to brokers in the greater Milwaukee marketplace. Still, many buyers are not aware of the tax credit or unsure if they qualify.

The real estate market in southeastern Wisconsin has put the majority of the housing correction behind it – faring much better than most other markets in the nation. Today’s market has plateaued at a level more advantageous to buyers. It is not flat, however, and will experience ups and downs, on a block-by-block level, until the overall economy recovers.

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.

Buyers – especially first-time buyers – should recognize the combination of: 1) historically low interest rates; 2) a plentiful supply of homes; 3) discounted prices; and 4) the $8,000 federal tax credit as a unique opportunity to buy a home and build future equity when the market improves.

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.

Here are some of the highlights from the March 2009 MLS Statistics Report:

Milwaukee County:

• There were 3,098 new listings in March, marking the 20th straight month of decreasing listings, in year-to-year comparisons. July 2007 was the last time year-to-year listings were up, with 3,646 listings in July 2007 vs. 3,595 in July 2006.

• The 8,061 listings in the 1st quarter of 2009 are 8.1% less than 2008’s 8,770, and 21.3% behind 2007’s 10,246.

Milwaukee County:

• Sales of 986 units in March were down 9% compared to March 2008’s 1,083 and 33.9% behind 2007’s 1,492.

• Sales in the first quarter of 2009, totaling 2,322, were down 13.1% compared to a year ago (2008 = 2,673) and 35.4% below 2007 (3,596).

Milwaukee County:

• Interest rates are better than they have been in decades. Buyers can expect rates in the range of 5% for a 30-year fixed mortgage and 4.625% for a 15-year fixed note.

• The MMAC Business Outlook Survey states that, “… metro Milwaukee businesses do not expect an imminent positive change in the current economic environment,” according to Bret Mayborne, MMAC’s economic research director.

Milwaukee County:

Milwaukee County: 597 units were sold in March, down 4.8% from the 627 sold in 2008, and down 26.1% vs. 2007’s 808 units. 1,759 properties were listed in the month, down 6.5%, compared to the 1,882 of 2008 and down 25.9% vs. 2007’s 2,375.

For the quarter, the county had 1,476 units sold, down 6.1%, vs. 1,572 in 2008, and 29.2% off of 2007’s 2,084. The average sales price of $116,928 for the 1st quarter was down 31% from 2008’s $169,582.

A large part of the decrease in the sale price in the county was due to activity in the City of Milwaukee, where the average sale price decreased from $136,757 to $84,423 (2008 and 2009, respectively). However, there were 996 sales in this 1st quarter compared to 941 in 2008, a 5.8% increase; and 62% of 2009’s sales were under $85,000, vs. 31% under that price point in 2008 – a sign that buyers are taking advantage of good values in the city.

Listings for the quarter were down 9.9% to 4,626, compared to 5,137 in 2008, and down 23.7% against the 6,061 from 2007.

Waukesha County: 258 units were sold in March; down 8.8% compared to the 283 units sold in March 2008, and down 38.4% vs. 2007’s 419. 867 properties were listed in March compared to 840 in 2008, up 3.2%, and 935 in 2007, down 7.3%.

For the 1st quarter in Waukesha County, there were 577 units sold vs. 710 in 2008, down 18.7%, and down 37.6% compared to 2007’s 925. The average sale price in 2009 was $260,141 compared to $279,548 in 2008, down 6.9%, and 290,056 in 2007, down 10.3%.

49% of the activity in Waukesha County is in the $200,000 to $399,999 range, and 35% of the sales are in the $100,000 to 199,999 range. The upper and lower ends of the spectrum are in single digits, 9.5% over $400,000 and 5.7% below $100,000.

Ozaukee County: 52 units were sold in March, down 7.1% compared to the 56 units sold in March 2008, and down 50% vs. 2007’s 104. 176 properties were listed in March compared to 193 in 2008 (-8.8%) and 250 in 2007 (-29.6%).

For the quarter, there were 107 units sold in 2009 vs. 143 in 2008, down 25.5%, and down 53.3% compared to the 229 units sold in 2007.

The average sale price of $298,991 is only down slightly, -0.3%, compared to the 299,987 1st quarter average in 2008 and up 3.5% compared to the average sale price in 2007.

42% of the Ozaukee County market was in the $100,000 to $199,999 market, and 56% in the $200,000 to “$500,000 and over” market.

Washington County: 82 units were sold in March, down 29.9% compared to the 117 units sold in March 2008, and down 49.1% vs. 2007’s 161. 286 properties were listed in March compared to 290 in 2007 (-1.4%) and 344 in 2007 (-16.9%).

For the 1st quarter in Washington County, there were 162 units sold vs. 248 in 2008, down 34.7%, and 54.7% behind 2007’s 358 units.

The average sale price for the 1st quarter was $204,965 compared to $211,056 in 2008 (-2.9%) and $219,063 in 2007 (-6.4%).

Similar to other suburban areas, 45% of the activity in the county was in the $100,000 to $199,999 range, and 40% was in the $200,000 to $399,999 range.

Racine County: 132 units were sold in March, up 3.9% compared to the 127 units sold in March 2008, and down -32.7% vs. 2007’s 196. 380 properties were listed in March compared to 382 in 2008 (-0.5%) and 491 in 2007 (-22.6%).

For the 1st quarter in Racine County, there were 272 units sold vs. 370 in 2008, a 26.5% decrease, and 42.7% behind 2007’s 475 units.

The average sale price for the first quarter of $150,128 was 12.1% below 2008’s $170,713, and 12.6% under 2007’s $171,731.

In the City of Racine, average sales price for the 1st quarter was $93,299, down 13.1%, vs. $107,334 in 2008, and $113,069 in 2007, down 17.5%.

Kenosha County: 80 units were sold in March, down 35.5% compared to 124 units sold in March 2008, and down 55.1% vs. 2007’s 178. 382 properties were listed in March compared to 431 in 2007 (-11.4%) and 495 in 2007 (-22.8%).

For the quarter, there were 219 units sold compared to 331 in 2008, down 33.8%, and 406 in 2007, down 46.1%.

The average sale price for the 1st quarter of $162,135 was 12.3% below 2008’s $184,809, and 11.6% below 2007’s $183,482.

For the City of Kenosha, the average sale price for the 1st quarter was $136,460, 12.3% below the $150,551 in 2008, and 11.6% under the $163,916 in 2007.

Walworth County: 53 units were sold in March, down 15.9% compared to the 63 units sold in March 2008, and down 54.3% vs. 2007’s 116. 314 properties were listed in March compared to 321 in 2008 (-2.2%) and 387 in 2007 (-18.9%).

For the 1st quarter, there were 131 units sold, down 26% from the 177 units sold in 2008, and 50.2% below the 263 units sold in 2007.

The average sale price for the 1st quarter in the county was $211,710, down 19.1% from 2008’s $261,725; and 30% below 2007’s $302,400.