Greater Milwaukee Association of Realtors: Home sales improve over May 2011

Contact: Mike Ruzicka
414.778.4929 or 414.870.1876

July 11, 2011 – Sales of homes in the Metropolitan Milwaukee real estate market improved dramatically over May’s housing numbers. Sales increased 15.3% in June to 1,419 over May’s sales of 1,231 in the 4-county metropolitan area.

Sales in June were down 8.5% year-over-year compared to June 2010. However, last June the market was reacting to the end of the federal tax credits which ended April 30, 2010, but closings were allowed to occur until June 30, 2010. Therefore, making comparisons between June 2010 and June 1011 is difficult.

Of sales this June, 61.5% (867 units) were $199,999 or less, signifying a large movement of homes in the investor and first-time buyer categories. 30.9% (436) of sales were between $200,000 and $399,999; and 7.6% of sales (107) were over $400,000.

The movement of affordable, first-time homes is indicative of a growing demographic in the market. As the oldest members of “Gen Y” start deciding to buy homes, the Milwaukee marketplace should continue to see an increase in sales.

In the county-by-county analysis:

· Milwaukee County was up 9.6% in sales compared to May (762 units vs. 695 units), but down 12.6% compared to June 2010 (872).

· Waukesha County was up 27.6% vs. May (444 compared 348), and up 1.4% vs. June 2010 (438).

· Washington County was up 6.1% compared to May (104 vs. 98), but down 14.0% compared to June 2010 (121).

· Racine County was up 6.6% vs. May (194 compared to 182), and up 7.2% vs. June 2010 (181).

· Ozaukee County was up 21.1% vs. May (109 vs. 90), but down 8.4% vs. 2010 (119).

A worry of brokers is that the overall economy and lending standards may suppress demand from absorbing more of the available supply in the market. Although the Metropolitan Milwaukee marketplace was down to a decent 9.5 months of inventory in June from 11.0 in May, many of those sales were due to buyers seeking deals and expecting concessions from sellers.

In these confusing times, buyers and sellers should remember to “Start With A REALTOR®” before beginning their home search or consulting with another housing professional.

The Greater Milwaukee Association of REALTORS® is a 4,000-member strong professional organization dedicated to providing information, services and products to “help REALTORS® help their clients” buy and sell real estate.