January Home Sales Fall as Prices Continue to Rise

Transcription

1 Date: 2/23/15 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, , January Home Fall as Prices Continue to Rise MADISON, Wis. Existing home sales fell in January but median prices rose at a healthy pace, according to the most recent statewide housing market analysis by the Wisconsin REALTORS Association (WRA). Home sales in January 2015 fell by 3.7 percent relative to January 2014, while median prices were up 6.5 percent to $135,000 over the same period. January is typically our slowest month for home sales, so it s important to keep this decline in perspective, said Dan Kruse, WRA board chairman. A typical January accounts for just 4.8 percent of annual sales in Wisconsin. With such a small base of sales, a 3.7 percent difference is only 125 fewer sales this January compared to January 2014, said Kruse. The January numbers, however, did show some interesting regional differences in sales activity. The Central region was up 24.1 percent in January after falling by about the same margin the previous year. Other regions saw more moderate changes. The North region was up 1.9 percent, and the South Central region increased 0.8 percent during the January 2014 to January 2015 period. Three regions saw their sales fall over that same time frame: the West and Southeast regions fell between 5 and 7 percent, and the Northeast dropped 11.6 percent. Drawing any conclusions from this data is made even more difficult due to the severe winter last year, which created substantial sales volatility throughout these regions, Kruse added. Median home prices continued their upward trend in January, rising to $135,000, which is 6.5 percent higher than January This continues the trend of price appreciation over the last three years, according to WRA President and CEO Michael Theo. Home prices in Wisconsin have been rising 34 of the last 35 months, said Theo. But he added, Median family income has gone up and interest rates have gone down during this 35-month span, helping to offset the higher prices and keeping our housing affordable. The Wisconsin Housing Affordability Index stood at 254 in January 2015, which is slightly higher than its January 2014 value of 248. This index measures the percent of the median-priced home that a household with median family income can purchased, given a 20 percent down payment and financing at current 30-year mortgage rates. We have really benefited from low mortgage rates, said Theo, noting that over the past year, the 30- year fixed-rate mortgage fell 72 basis points to 3.71 percent in January. And while the national economy has been on a bit of a roller coaster this last year, the slower real GDP growth in the fourth quarter combined with the recent decline in energy prices probably reduces the likelihood of a rate hike by the Federal Reserve Board in the first half of It s always difficult to predict when mortgage rates will change, but rates are now less than a half percent higher than the 40-year low, Theo said. Mortgage rates bottomed out at 3.35 percent in December The bottom line is that this is an excellent time for qualified borrowers to get into the market, and using an experienced REALTOR remains one of the best ways for buyers to identify the best values in this market, he said. The Wisconsin REALTORS Association is one of the largest trade associations in the state, representing over 14,500 real estate brokers, salespeople 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 the 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 rebenchmarked 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 - January 2015 Provided by the Wisconsin REALTORS Association Report Criteria: Reflecting data through: January 2015 State: WI Type: Residential Wisconsin - Statewide Wisconsin 1/2014 1/2015 % Change YTD 2014 YTD 2015 YTD % Change New Listings 7,159 7, % 7,159 7, % Closed 3,375 3, % 3,375 3, % Median Price 126, , % 126, , % Months Supply of Inventory % Inventory of Homes for Sale 42,704 41, % 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 January 2015 Housing Trends report was current as of 2/19/2015 8:44:00 PM. 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: January 2015 State: WI Type: Residential Southeast Kenosha 129, , % % Southeast Milwaukee 102,800 98, % % Southeast Ozaukee 239, , % % Southeast Racine 114,450 95, % % Southeast Sheboygan 101,000 92, % % Southeast Walworth 146, , % % Southeast Washington 172, , % % Southeast Waukesha 221, , % % Southeast Regional Total 140, , % 1,184 1, % Milwaukee Milwaukee 102,800 98, % % Milwaukee Ozaukee 239, , % % Milwaukee Washington 172, , % % Milwaukee Waukesha 221, , % % Milwaukee Regional Total 149, , % % South Central Columbia 145, , % % South Central Crawford NA NA NA % South Central Dane 214, , % % South Central Dodge 138,000 91, % % South Central Grant 98, , % % South Central Green 147, , % % South Central Iowa 111, , % % South Central Jefferson 140, , % % South Central Lafayette NA NA NA % South Central Richland 53,552 NA NA % South Central Rock 106,950 98, % % South Central Sauk 169, , % % South Central Regional Total 165, , % % 2

4 West Buffalo NA NA NA % West Chippewa 138, , % % West Dunn 117,500 97, % % West Eau Claire 160, , % % West Jackson 54,000 NA NA % West La Crosse 123, , % % West Monroe 84, , % % West Pepin NA NA NA % West Pierce 140, , % % West St. Croix 158, , % % West Trempealeau 117,000 NA NA % West Vernon 73,950 NA NA % West Regional Total 130, , % % Northeast Brown 141, , % % Northeast Calumet 151, , % % Northeast Door 145, , % % Northeast Fond du Lac 120,000 96, % % Northeast Green Lake 114,750 NA NA % Northeast Kewaunee 115,000 NA NA % Northeast Manitowoc 76,500 73, % % Northeast Marinette 119,900 82, % % Northeast Menominee NA NA NA 1 NA NA Northeast Oconto 100,000 83, % % Northeast Outagamie 134, , % % Northeast Shawano 108,450 84, % % Northeast Waupaca 79,000 83, % % Northeast Winnebago 125, , % % Northeast Regional Total 124, , % % 3

5 Central Adams 90,000 42, % % Central Clark 78,000 48, % % Central Juneau 84,750 63, % % Central Marathon 101, , % % Central Marquette 67,500 50, % % Central Portage 134, , % % Central Waushara 181,000 88, % % Central Wood 77,150 80, % % Central Regional Total 101,250 88, % % North Ashland NA NA NA % North Barron 80, , % % North Bayfield 97, , % % North Burnett 112, , % % North Douglas 115, , % % North Florence NA NA NA 1 1 0% North Forest NA NA NA % North Iron NA NA NA % North Langlade 53,475 40, % % North Lincoln 115, , % % North Oneida 99, , % % North Polk 104, , % % North Price NA 137,000 NA % North Rusk NA NA NA 4 4 0% North Sawyer 110, , % % North Taylor NA NA NA % North Vilas 156,750 97, % % North Washburn 75, , % % North Regional Total 104, , % % Statewide Statewide 1/2015 1/2014 % Change 1/2015 1/2014 % Change 135, , % 3,250 3, % Wisconsin REALTORS Association