Record Year on Track for Wisconsin Housing Market

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1 Date: 10/17/2016 For Release: Immediately For More Information Contact: Michael Theo, WRA President & CEO, , or David Clark, Economist, C3 Statistical Solutions and Professor of Economics, Marquette University, , Record Year on Track for Wisconsin Housing Market MADISON, Wis. The Wisconsin housing market could set a record high this year, according to the latest analysis of existing home sales by the Wisconsin REALTORS Association (WRA). September sales were up 6.9 percent over September 2015, and median prices increased 7.9 percent over that same period to $167,450. Through the first nine months of 2016, home sales were up 5 percent and median prices rose 4.8 percent to $165,000 over the first nine months of Home sales are the highest we ve seen in more than 10 years, said WRA board chairman Erik Sjowall. Whether you look at the month of September, the third quarter or year-to-date, home sales are at the highest levels since at least 2004, Sjowall said. comparisons before 2005 are not possible due to a rebenchmarking of data in that year. Demand outpaced supply again in September, continuing a concern REALTORS have expressed throughout the year. Unfortunately, we could have sold more if we had more to sell, said Sjowall. Inventory levels fell to 43,363 homes in September, which represents 6.5 months of available supply. Usually we consider six months of supply to be a balanced market, but the available supply in the cities is much lower than the rural areas, Sjowall noted. For example, Wisconsin s two largest cities, Milwaukee and Madison, had 4.5 months and 4.1 months of supply of homes, respectively. In contrast, nonmetropolitan counties in the state had 10.9 months of supply. However, even with the tight supply of homes for sale, every region has seen steady sales growth through the first nine months of this year. The growth in existing home sales across the six regions of the state ranged between 3.4 percent and 6.3 percent this year compared to the first nine months of Despite this inventory shortage, sales are going gangbusters, said Sjowall. The median price increased 7.9 percent to $167,450 over the period between September 2015 and September It is important to remember that home prices do follow a regular seasonal pattern, said WRA President & CEO Michael Theo. Prices move higher when the market volume peaks in the summer and then eases as the market activity tails off in the winter, Theo said. Comparing the median price in September 2016 to past Septembers illustrates how much home prices have moved up since the market bottomed out in In September 2011, the median price was $134,900. Since then, prices have grown 24.1 percent, or 4.3 percent on a compounded annual basis. While price growth has clearly outpaced inflation, which has been quite low over the past four years, these price increases are sustainable given how affordable housing remains in the state, said Theo. The Wisconsin Housing Affordability Index shows the percent of the median-priced home that a household with median family income can qualify to purchase, assuming a 20 percent down payment with the remaining principle financed with a 30-year fixed-rate mortgage. The index has been stable over the last 12 months and stood at 231 in September 2016, which is nearly identical to the value from As a point of comparison, the national index stood at in July this year. Our housing offers great value, but the Fed keeps hinting that it intends to increase short-term interest rates, Theo said. When that happens, affordability will begin to slip especially if inventories remain so tight. Theo added, Now is the perfect time to take advantage of low rates to get into the home that best fits your family s needs, and an experienced REALTOR can help make that happen. 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. 1

2 Wisconsin Monthly Housing Statistics Report - September 2016 Provided by the Wisconsin REALTORS Association Report Criteria: Reflecting data through: September 2016 State: WI Type: Residential Wisconsin - Statewide Wisconsin 9/2015 9/2016 % Change YTD 2015 YTD 2016 YTD % Change New Listings 8,613 8, % 97,668 92, % Closed 7,079 7, % 59,771 62, % Median Price 155, , % 157, , % Months Supply of Inventory % Inventory of Homes for Sale 51,001 43, % Inventory of homes for sale includes residential single family, duplex, condo, and townhouse properties. Current Month Year-to-date Historical Activity New Listings Sold Listings Median Price Inventory and Affordability Wisconsin REALTORS Association The information used to create the September 2016 Housing Trends report was current as of 10/12/2016 1:02:00 AM. The information is subject to change due to the dynamic nature of the WRA's housing statistics system, which is updated daily based on information present in local participating MLS (multiple listing service) systems. 1

3 Wisconsin Regional Report Provided by the Wisconsin REALTORS Association Report Criteria: Reflecting data through: September 2016 State: WI Type: Residential Southeast Kenosha 153, , % % Southeast Milwaukee 138, , % % Southeast Ozaukee 279, , % % Southeast Racine 169, , % % Southeast Sheboygan 139, , % % Southeast Walworth 187, , % % Southeast Washington 228, , % % Southeast Waukesha 269, , % % Southeast Regional Total 181, , % 2,655 2, % Milwaukee Milwaukee 138, , % % Milwaukee Ozaukee 279, , % % Milwaukee Washington 228, , % % Milwaukee Waukesha 269, , % % Milwaukee Regional Total 192, , % 1,823 1, % South Central Columbia 185, , % % South Central Crawford 87, , % % South Central Dane 240, ,000 0% % South Central Dodge 148, , % % South Central Grant 80, , % % South Central Green 182, , % % South Central Iowa 166, , % % South Central Jefferson 186, , % % South Central Lafayette NA NA NA 8 8 0% South Central Richland 130, , % % South Central Rock 139, , % % South Central Sauk 154, , % % South Central Regional Total 196, , % 1,409 1, % 2

4 West Buffalo NA NA NA % West Chippewa 151, , % % West Dunn 145, , % % West Eau Claire 141, , % % West Jackson 125, , % % West La Crosse 174, , % % West Monroe 133, , % % West Pepin 139, , % % West Pierce 205, , % % West St. Croix 219, , % % West Trempealeau 147, , % % West Vernon 124, , % % West Regional Total 166, , % % Northeast Brown 155, , % % Northeast Calumet 170, , % % Northeast Door 230, , % % Northeast Fond du Lac 130, , % % Northeast Green Lake 93, , % % Northeast Kewaunee 128, , % % Northeast Manitowoc 113, , % % Northeast Marinette 85,000 86, % % Northeast Menominee NA NA NA % Northeast Oconto 119, , % % Northeast Outagamie 156, , % % Northeast Shawano 121,250 77, % % Northeast Waupaca 113, , % % Northeast Winnebago 134, , % % Northeast Regional Total 142, , % 1,439 1, % 3

5 Central Adams 112, , % % Central Clark 79, , % % Central Juneau 121,000 80, % % Central Marathon 132, , % % Central Marquette 120,000 62, % % Central Portage 152, , % % Central Waushara 134, , % % Central Wood 115,950 94, % % Central Regional Total 125, , % % North Ashland 85,000 79, % % North Barron 147, , % % North Bayfield 168, , % % North Burnett 148, , % % North Douglas 139, , % % North Florence NA NA NA % North Forest 175,000 NA NA % North Iron NA 157,500 NA % North Langlade 89,900 92, % % North Lincoln 126, , % % North Oneida 187, , % % North Polk 169, , % % North Price 140,000 77, % % North Rusk 128, , % % North Sawyer 155, , % % North Taylor 129,000 75, % % North Vilas 226, , % % North Washburn 151, , % % North Regional Total 150, , % % Statewide Statewide 9/2016 9/2015 % Change 9/2016 9/2015 % Change 167, , % 7,564 7, % Wisconsin REALTORS Association

6 Wisconsin Regional Report Provided by the Wisconsin REALTORS Association Report Criteria: Reflecting data through: September 2016 State: WI Type: Residential Southeast Kenosha 150, , % 1,901 1, % Southeast Milwaukee 141, , % 8,799 7, % Southeast Ozaukee 262, , % 1,042 1, % Southeast Racine 147, , % 2,123 1, % Southeast Sheboygan 132, , % 1,124 1, % Southeast Walworth 180, , % 1,411 1, % Southeast Washington 207, , % 1,620 1, % Southeast Waukesha 263, , % 4,664 4, % Southeast Regional Total 175, , % 22,684 21, % Milwaukee Milwaukee 141, , % 8,799 7, % Milwaukee Ozaukee 262, , % 1,042 1, % Milwaukee Washington 207, , % 1,620 1, % Milwaukee Waukesha 263, , % 4,664 4, % Milwaukee Regional Total 186, , % 16,125 15, % South Central Columbia 171, , % % South Central Crawford 110, , % % South Central Dane 243, , % 6,668 6, % South Central Dodge 134, , % % South Central Grant 107, , % % South Central Green 153, , % % South Central Iowa 149, , % % South Central Jefferson 171, , % % South Central Lafayette 117, , % % South Central Richland 110,500 97, % % South Central Rock 135, , % 1,852 1, % South Central Sauk 160, ,000 0% % South Central Regional Total 195, , % 12,944 12, % 5

7 West Buffalo 115, , % % West Chippewa 149, , % % West Dunn 149, , % % West Eau Claire 155, , % 1,124 1, % West Jackson 119, , % % West La Crosse 167, , % 1,103 1, % West Monroe 145, , % % West Pepin 131, , % % West Pierce 188, , % % West St. Croix 219, , % 1,317 1, % West Trempealeau 130, , % % West Vernon 150, , % % West Regional Total 167, , % 6,242 6, % Northeast Brown 158, , % 2,797 2, % Northeast Calumet 176, , % % Northeast Door 209, , % % Northeast Fond du Lac 128, , % % Northeast Green Lake 118, , % % Northeast Kewaunee 107, , % % Northeast Manitowoc 101,900 97, % % Northeast Marinette 90,000 92, % % Northeast Menominee 216, , % % Northeast Oconto 130, , % % Northeast Outagamie 148, , % 2,034 1, % Northeast Shawano 109, , % % Northeast Waupaca 119, , % % Northeast Winnebago 132, , % 1,810 1, % Northeast Regional Total 140, , % 11,351 10, % 6

8 Central Adams 118, , % % Central Clark 89,000 97, % % Central Juneau 108,000 85, % % Central Marathon 136, , % 1,271 1, % Central Marquette 114,542 85, % % Central Portage 149, , % % Central Waushara 129, , % % Central Wood 102, , % % Central Regional Total 125, , % 3,873 3, % North Ashland 97,500 79, % % North Barron 134, , % % North Bayfield 156, , % % North Burnett 150, , % % North Douglas 139, , % % North Florence 112,000 NA NA % North Forest 141,000 91, % % North Iron 159, , % % North Langlade 87,750 84, % % North Lincoln 110, , % % North Oneida 160, ,000 0% % North Polk 157, , % % North Price 82,000 90, % % North Rusk 111,000 95, % % North Sawyer 174, , % % North Taylor 127, , % % North Vilas 189, , % % North Washburn 139, , % % North Regional Total 140, , % 5,558 5, % Statewide Statewide YTD 2016 YTD 2015 % Change YTD 2016 YTD 2015 % Change 165, , % 62,760 59, % Wisconsin REALTORS Association