For More Information Contact:
Michael Theo, WRA President & CEO, 608-241-2047, mtheo@wra.org
or David Clark, Economist, C3 Statistical Solutions and Professor of Economics, Marquette University, 414-803-6537, dclark@c3stats.com
MADISON, WI – The Wisconsin housing market continued to grow as existing home sales increased 4.6 percent in September of 2012 compared to September 2011, according to the most recent monthly report by the Wisconsin REALTORS® Association (WRA). Median prices also increased over that same period, increasing 0.2 percent to $135,000 in September. Sales have now increased for 14 straight months, and prices have been up the last seven months.
“Although the state housing market continues to grow, the growth in September was more modest than the first eight months of the year where home sales increased 21.3 percent,” said Renny Diedrich, chairman of the WRA board of directors. The slower growth is attributable to the sluggish pace of the national economic expansion, which has led to weak job growth in the state, according to Diedrich. According to the Bureau of Labor Statistics household survey, Wisconsin’s employment levels have increased every month since August 2010 compared to the same month in the previous year, but that growth has typically been below 1 percent. In addition, the seasonally adjusted unemployment rate for the state increased throughout the summer, peaking at 7.5 percent in August before improving slightly in September. “The relatively soft jobs picture throughout the summer, combined with the uncertainty associated with the national elections may have kept some buyers on the fence in September,” said Diedrich. Four out of six regions in Wisconsin saw existing home sales increase in September compared to last September. The strongest growth was in the Southeast region where sales were up 7.9 percent. This was followed by the North and South Central regions, which grew between 5.6 percent and 5.9 percent, and the Northeast, which was up 4.1 percent. Existing home sales in the West were down 1.9 percent, and they fell 4 percent in the Central region.
The median price rose to $134,700, which is an increase of 0.2 percent relative to September 2011. “We have seen median prices up now for seven straight months, and year to date, they have grown 1.1 percent,” said WRA President and CEO, Michael Theo. He notes that the state has made progress in terms of reducing its inventory of unsold homes, which fell from 16.2 months of supply in September of last year to 12 months of supply last month. “This is still a buyer’s market from the perspective of our stock of inventory, but the reductions we have seen over the past year continue to put slight upward pressure on home prices,” said Theo. He also noted that a 30-year fixed-rate mortgage was at 3.5 percent. “The Federal Reserve Board has taken action to keep interest rates low for the foreseeable future,” he said, adding, “this helps with both consumer confidence and housing affordability.” The Wisconsin Housing Affordability Index, which measures the percentage of a median-priced home that a buyer with the median family income can afford, stood at 257 in September, up from 232 in September of 2011. “There was a nice bump in the Conference Board’s Consumer Confidence Index in September, and NAR reports that REALTOR® Confidence has also moved up recently,” said Theo. The REALTOR® Confidence Index, which is based on a national survey of REALTORS® evaluates their perceptions of current and future housing market conditions. The August index indicated that REALTORS® expect better conditions over the next 6 months in the single-family market, and they rate that market as moderate to strong. “Wisconsin REALTORS® have expressed similar sentiments, which leads us to conclude that barring another recession, we should see continued steady growth in sales, and modest price appreciation in the state,” said Theo.
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 14,500 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.
