Home Sales Up 21.6% in December
Up 4.2% for 2011
January 12, 2011 – Home sales jumped 21.6% in December in the 4-county metropolitan area, marking the 6th month in a row that sales increased by double-digits. For the year, 2011 finished 4.2% ahead of 2010.
Between Thanksgiving and New Year’s Day, brokers reported that the end of 2011 was finishing strong, and the numbers back up their accounts. Market dynamics at the end of the year consisted of the same conditions that have dominated for the last several years: low prices, an ample supply of homes and extremely low interest rates. However, it appears the missing ingredient – consumer confidence – is slowly coming around.
Sales were up significantly in December (1,007 in 2011 vs. 828 in 2010) as buyers continued to take advantage of the tremendous value and future equity growth the real estate market offers.
It looks as if sales in the Metropolitan Milwaukee marketplace bottomed out in the 3rd and 4th quarters of 2010 and into the first quarter of 2011. When the economy did not pick up steam as the federal tax credits expired in 2010, the real estate market fell dramatically in July of last year. The market did not improve at all well into 2011. In March, the market saw a very slight improvement, but stayed very soft until the end of the year.
Leading into the 2011 Holiday Season, sales figures indicated that 2011 would actually be worse than 2010. But, REALTORS® were unusually busy helping buyers through the end of the year.
That is not to say prices are not still under pressure. Most average sales prices were still under downward strain in 2011 as the chart below shows.
| County | 2011 Average Sales Price | 2010 Average Sales Price | Price Change |
| Milwaukee | $ 128,004.00 | $ 143,161.00 | -10.59% |
| Ozaukee | $ 267,407.00 | $ 287,464.00 | -6.98% |
| Washington | $ 203,319.00 | $ 202,347.00 | 0.48% |
| Waukesha | $ 260,179.00 | $ 272,233.00 | -4.43% |
Downward price pressure in 2011 was not incompatible with an increase in sales. Rather, it was a sign that buyers were active and continuing to look for concessions from sellers. Milwaukee County, and the City of Milwaukee, saw the largest price drop, because of the number of foreclosed properties on the market – many of which were purchased several units at a time by investors directly from lenders.
There are several anecdotal examples of upward price pressure in the market today, but not on a wide scale. That is indicative of the beginning of a recovery. As prices of high-quality, move-in-ready properties attract buyers taking advantage of what the market is offering we should see the encounters brokers are experiencing show up statistically, but it will take time.
Listings of new homes in 2011 were down a total of 10-months. May and June were the only months in which listings were above the same point in 2010. The rest of the time we had fewer people attempting to sell their home than the year before. This is a positive development in the current market, because some sellers are deciding to wait and see when the market improves before putting their home up for sale, allowing current sellers to capture more attention from buyers.
County-by-County Sales Analysis:
· Milwaukee County was up 29.4% in sales over 2010 (590 units vs. 456 units)
· Waukesha County was up 16.0% vs. 2010 (282 sales compared with 243)
· Washington County was the only county down in December, -1.4% compared to 2010 (72 units vs. 73 units)
· Ozaukee County was up 12.5% vs. a year ago (63 vs. 56)
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.
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