HOME SALES RALLY IN THE FOURTH QUARTER TO KEEP WISCONSIN HOUSING MARKET STABLE

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1 Date: 2/11/2010 For Release: Immediately For More Information Contact: David E. Clark, Economist C3 Statistical Solutions Inc. Office phone: or William Malkasian, President Wisconsin REALTORS Association Office phone: HOME SALES RALLY IN THE FOURTH QUARTER TO KEEP WISCONSIN HOUSING MARKET STABLE Madison - Home sales in Wisconsin rallied in the fourth quarter after steady improvements throughout the year, bringing final 2009 existing home sales back to their 2008 levels, according to the year-end analysis of home sales conducted by the Wisconsin REALTORS Association (WRA). At the same time home prices were down by modest margins, as they were in much of the Midwest, but down much less than in other parts of the country. In the end, Wisconsin home sales in 2009 were unchanged from 2008, said WRA President William Malkasian, but it was really a tale of two halves. The first half of the year was down significantly compared to 2008, and the second half of the year grew at a very healthy rate. According to the REALTORS report, fourth quarter home sales in Wisconsin were 25.6 percent above the same quarter in Malkasian explained this was due to several factors including favorable interest rates and the federal first-time home buyer s tax credit. Mortgage rates remained at historic low levels, just under 5 percent in the fourth quarter, and first-time home buyers were scrambling to get their homes closed when they thought the federal tax credit was expiring at the end of November 2009, Malkasian said. With sales improving each quarter last year, the general trend for the future is favorable, he said, but cautioned, While the recession is probably officially over, we really need to start seeing healthy job growth before the economy truly starts to recover. Unemployment stood at 8.7 percent in December, and Wisconsin seasonallyadjusted employment dropped by nearly 120,000 jobs in State median home prices fell 7.7 percent to $143,000 in 2009 as compared to This is in line with the Midwest region, where median single-family home prices fell 5.3 percent over the year, and it is better than the decline of 11.9 percent for the U.S. The West region of the U.S., which has been hit hard by heavy foreclosure activity, saw its median prices drop 18.7 percent in 2009 versus We do appear to be turning the corner in the state, with healthy inventories and moderating prices, said John Flor, chairman of the WRA Board of Directors. The extension of the federal first-time home buyer s tax credit and the expansion to include tax credits for existing homeowners should help entice buyers off the fence and into the market, Flor said. Flor noted these tax credits can only be taken on home sales with a contract by the end of April, and closing by the end of June. We hope this additional tax stimulus will supplement the improving market conditions to make 2010 a better year to buy and sell real estate in Wisconsin. The Wisconsin REALTORS Association is one of the largest trade associations in the state, representing more than 13,500 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS Association and are not seasonally adjusted. ### 1

2 SUPPORTING DATA TABLES AND TALKING POINTS NATIONAL SALES COMPARISON BY REGION A comparison of regional sales performance as outlined in Table 1 reveals some key insights: Table 1: Growth Rates of in the US and Census Regions Annual Growth Rates Quarterly Growth Rates for r p Q1 Q2 Q3r Q4p United States 4.4% -8.5% -12.8% -13.1% 4.9% -7.5% -3.2% 5.0% 27.2% Northeast 5.0% -7.1% -7.4% -15.6% 2.2% -20.1% -9.1% 7.8% 33.6% Midwest 2.5% -6.6% -10.5% -14.9% 3.2% -14.7% -5.7% 4.3% 29.9% South 6.4% -5.1% -12.8% -16.6% 2.6% -13.1% -6.7% 4.8% 28.2% West 2.7% -16.8% -19.5% -1.3% 13.1% 24.7% 11.1% 3.5% 18.2% Source: National Association of REALTORS ; p preliminary estimates subject to revision, r=revised. Footnote: Data collected by the National Association of REALTORS (NAR) include single-family homes, condos and co-ops, as well as estimates of homes sold privately without the use of a REALTOR. NAR also accounts for areas in which MLS data is not reported. All 2009 reported by NAR data are considered preliminary and subject to revision in subsequent releases. Key points: The US and all four Broad Census Regions grew in 2009 as compared to 2008 with the US up 4.9 percent for the year. Among the Census regions, the most robust growth was seen in the West region, where sales were up 13.1 percent in 2009 due in large part to the brisk sales of foreclosed properties in that area. The Midwest was up a modest 3.2 percent in 2009 compared to Prior to 2009, the last year of annual growth derived from year-end sales of existing homes was 2005 for the US and all Broad Census regions. An analysis of quarterly growth patterns for 2009 reveals that the US and three of the four Census Regions experienced decline in the first two quarters of the year, and saw growth in the last two quarters. The exception is the West region which grew all four quarters, again due to high levels of sales activity on foreclosed homes. The US and Northeast, Midwest and South regions all experienced improvements in each of the subsequent quarters of the year. For example, the decline in US home sales in Q2 was just half the Q1 decline (3.2 percent in Q2 vs. 7.5 percent in Q1), and it rose by 5 percent in the third quarter and 27.2 percent in the fourth quarter. The US and all regions of the country were up by double digit margins in Q compared to Q MIDWEST SALES COMPARISON The home market in 2009 was up 3.2 percent in the Midwest, with most states experiencing modest to solid growth, and four states either flat or down compared to their 2008 levels. 2

3 Table 2: Annual and Quarterly Growth Rates of of Midwestern States Annual Growth Rates Quarterly Growth Rates for Q1 Q2 Q3 Q4 Illinois 2.5% -8.3% -17.1% -23.6% 0.7% -21.7% -15.3% 1.7% 36.5% Indiana 6.0% 6.6% 0.6% -20.0% -11.7% -33.4% -16.9% -10.7% 17.9% Iowa 5.3% -0.4% -5.5% -21.0% 4.1% -11.9% 1.6% 4.1% 19.3% Kansas 6.1% -2.3% -7.4% -14.3% -6.5% -25.6% -17.1% -3.3% 23.0% Michigan -2.2% -12.6% -5.5% -9.7% 7.4% -5.8% 12.2% 11.6% 13.9% Minnesota -1.8% -14.5% -13.5% -3.6% 11.5% 5.0% 11.3% -2.6% 41.1% Missouri 0.8% -5.3% -8.6% -12.1% -2.6% -20.8% -12.8% 0.4% 22.9% Nebraska 3.5% -6.1% -4.9% -16.0% 12.3% -17.9% 5.1% 20.3% 45.8% North Dakota 9.0% -10.8% 2.1% -13.9% 5.6% -27.3% -16.1% 19.4% 39.3% Ohio 4.1% -4.0% -8.9% -8.4% 8.3% -3.8% -1.0% 13.5% 27.4% South Dakota 5.8% 0.0% 1.1% -11.9% 6.7% -21.4% -7.1% 12.2% 39.5% Wisconsin 5.1% -4.5% -10.8% -19.2% 0.0% -22.6% -10.5% 6.5% 25.6% Midwest total 2.5% -6.6% -10.5% -14.9% 3.2% -14.7% -5.7% 4.3% 29.9% Source: National Association of REALTORS ; p preliminary estimates subject to revision, r=revised. Footnote: Data collected by the National Association of REALTORS (NAR) include single-family homes, condos and co-ops, as well as estimates of homes sold privately without the use of a REALTOR. NAR also accounts for areas in which MLS data is not reported. All 2009 reported by NAR data are considered preliminary and subject to revision in subsequent releases. Key points: Annual growth in 2009 was up by double digits in just two states; Nebraska (up 12.3 percent) and Minnesota (growing 11.5 percent). Most states were up between 4.1 percent and 8.3 percent (i.e., Iowa, Michigan, North Dakota, Ohio and South Dakota), whereas two were flat (Illinois was up 0.7 percent and Wisconsin was unchanged). Finally, Missouri home sales fell 2.6 percent and sales dropped 11.7 percent in Indiana. Most states in the region mirrored the National and Midwest patterns when comparing the four quarters of Specifically, the growth in home sales improved throughout the year (i.e., Q2 compared to Q1, Q3 compared to Q2 and Q4 compared to Q3). All but three states saw some growth in Q3 and all states grew by double-digit margins in the fourth quarter, with 9 of the 12 states in the Midwest up by more than 20 percent. MEDIAN PRICE AND SALES VOLUME COMPARISON WITHIN WISCONSIN Summary information for the various Wisconsin regions for 2009 is shown in Table 3, and a summary table for the 4 th Quarter of 2009 is reported in Table 4. A full summary of annual existing home sales statistics are reported in Table 5 and a full summary of the home sales statistics for just the fourth quarter of 2009 are summarized in Table 6. Table 3: Wisconsin Annual Activity by Region Region % Change % Change Southeast $157,000 $174, % % South Central $165,000 $175, % % West $132,000 $140, % % Northeast $122,400 $129, % % Central $115,000 $118, % % North $118,000 $129, % % Source: WRA. Beginning with this release, all Wisconsin data at the county and regional levels have been derived using a new system that accesses the raw data of participating MLS s throughout the state. This was done so as to more accurately compute median prices, and more completely measure sales activity in counties in which there are multiple MLS s covering the county. Thus, all 2008 and 2009 data used in this report have been re-benchmarked using this system. Historical data reported on the WRA website will be updated to incorporate this new system over the next three months. Historical data on the website are currently not comparable with sub-state data in this report.

4 Key points: Home sales grew in four of the six regions of the state in 2009 compared to The strongest home sales were in the South Central region, where existing home sales grew 4.8 percent. However, two regions saw their sales volume decrease in 2009, including the North region (-1.5 percent) and the Northeast region (-5.0 percent). All regions of the state experienced a reduction in median prices, with the largest declines in the Southeast region (-9.8 percent) and the North region (-8.5 percent). The other regions fell by 2.5 percent to 5.8 percent. It is important to note that the initial version of the federal tax credit program likely changed the mix of homes that sold in 2009 because it applied to first-time buyers only. Thus, the homes that sold in 2009 were more likely to be starter homes that are less costly than the typical 2008 home sold in the state. Table 4: Wisconsin Fourth Quarter Activity by Region Region Q Q % Change Q Q % Change Southeast $154,900 $160, % % South Central $157,000 $162, % % West $128,940 $130, % % Northeast $120,000 $127, % % Central $117,000 $110, % % North $119,450 $124, % % Source: WRA. Beginning with this release, all Wisconsin data at the county and regional levels have been derived using a new system that accesses the raw data of participating MLS s throughout the state. This was done so as to more accurately compute median prices, and more completely measure sales activity in counties in which there are multiple MLS s covering the county. Thus, all 2008 and 2009 data used in this report have been rebenchmarked using this system. Historical data reported on the WRA website will be updated to incorporate this new system over the next three months. Historical data on the website are currently not comparable with sub-state data in this report. Key Points: Home sales rose substantially in the fourth quarter in every region in the state, with the growth ranging between 19.2 percent in the North region to 33.5 percent in the South Central region. Median prices were down by modest margins in four of the six regions of the state. The largest decline was the Northeast region where median prices fell 5.5 percent. Median prices were flat in the West (-0.8 percent) and they rose 6.4 percent in the Central region. 4

5 Table 5: Wisconsin Annual Comparison 2009 vs totals* Region County % Change % Change Southeast Kenosha $142,500 $159, % % Southeast Milwaukee $127,500 $149, % % Southeast Ozaukee $220,750 $238, % % Southeast Racine $137,000 $154, % % Southeast Sheboygan $125,000 $136, % % Southeast Walworth $168,500 $182, % % Southeast Washington $179,900 $198, % % Southeast Waukesha $227,050 $240, % % Southeast Regional Total $157,000 $174, % % South Central Columbia $144,000 $156, % % South Central Crawford $112,000 $129, % % South Central Dane $200,000 $215, % % South Central Dodge $122,053 $133, % % South Central Grant $100,000 $102, % % South Central Green $127,000 $131, % % South Central Iowa $128,000 $132, % % South Central Jefferson $159,900 $162, % % South Central Lafayette $109,000 $95, % % South Central Richland $87,500 $117, % % South Central Rock $114,950 $120, % % South Central Sauk $140,000 $151, % % South Central Regional Total $165,000 $175, % % West Buffalo $107,000 $104, % % West Chippewa $118,950 $122, % % West Dunn $125,500 $130, % % West Eau Claire $129,000 $135, % % West Jackson $91,000 $91, % % West La Crosse $136,900 $145, % % West Monroe $109,000 $115, % % West Pepin $87,200 $95, % % West Pierce $145,426 $168, % % West St. Croix $159,250 $174, % % West Trempealeau $105,000 $115, % % West Vernon $115,000 $127, % % West Regional Total $132,000 $140, % % *Source: WRA. Beginning with this release, all Wisconsin data at the county and regional levels have been derived using a new system that accesses the raw data of participating MLS s throughout the state. This was done so as to more accurately compute median prices, and more completely measure sales activity in counties in which there are multiple MLS s covering the county. Thus, all 2008 and 2009 data used in this report have been re-benchmarked using this system. Historical data reported on the WRA website will be updated to incorporate this new system over the next three months. Historical data on the website are currently not comparable with sub-state data in this report. 5

6 Table 5: Wisconsin Annual Comparison 2009 vs totals* Sales Region County % Change % Change Northeast Brown $135,000 $147, % % Northeast Calumet $143,000 $149, % % Northeast Door $163,000 $191, % % Northeast Fond du Lac $119,450 $123, % % Northeast Green Lake $85,000 $87, % % Northeast Kewaunee $101,500 $99, % % Northeast Manitowoc $97,950 $104, % % Northeast Marinette $74,450 $75, % % Northeast Menominee $210,000 $246, % % Northeast Oconto $107,000 $118, % % Northeast Outagamie $127,000 $136, % % Northeast Shawano $90,750 $95, % % Northeast Waupaca $89,250 $103, % % Northeast Winnebago $116,000 $126, % % Northeast Regional Total $122,400 $129, % % Central Adams $105,000 $95, % % Central Clark $75,000 $81, % % Central Juneau $85,900 $87, % % Central Marathon $126,900 $134, % % Central Marquette $119,900 $123, % % Central Portage $132,250 $135, % % Central Waushara $98,000 $107, % % Central Wood $96,250 $95, % % Central Regional Total $115,000 $118, % % North Ashland $95,000 $96, % % North Barron $107,750 $112, % % North Bayfield $130,000 $131, % % North Burnett $131,000 $155, % % North Douglas $97,500 $110, % % North Florence $70,000 NA NA % North Forest $105,500 $102, % % North Iron $140,450 $93, % % North Langlade $74,900 $76, % % North Lincoln $102,600 $93, % % North Oneida $130,000 $147, % % North Polk $108,000 $129, % % North Price $89,900 $89, % % North Rusk $80,000 $82, % % North Sawyer $155,900 $180, % % North Taylor $105,000 $98, % % North Vilas $175,000 $179, % % North Washburn $130,000 $155, % % North Regional Total $118,000 $129, % % Source: WRA. Data on sales volume and median price are derived using data reported to the Wisconsin REALTORS Association by various Multiple Listing Services in the different regions. Neither median price, nor sales volume data have been seasonally adjusted. Participating MLS's include Central Wisconsin MLS, Door County Board of REALTORS, Green Lake/Ripon Board of Realtors, Marinette County Board of Realtors, MetroMLS, Northstar MLS, Northwestern Wisconsin MLS, REALTORS Association of Northeast Wisconsin, South Central MLS and Superior Area Association of REALTORS. Sales data include single-family, condo/co-op and duplex properties. They do not include properties sold by private owners that would not appear on the MLS Sales data include single-family, condo/co-op and duplex properties. Median price calculations are not made if there are fewer than 10 sales in the county. 6

7 Table 6: Wisconsin Quarter Four Comparison Q vs. Q totals Region County Q Q % Change Q Q % Change Southeast Kenosha $140,600 $145, % % Southeast Milwaukee $127,000 $127, % % Southeast Ozaukee $229,900 $233, % % Southeast Racine $130,500 $143, % % Southeast Sheboygan $121,250 $129, % % Southeast Walworth $161,250 $183, % % Southeast Washington $180,000 $199, % % Southeast Waukesha $220,071 $240, % % Southeast Regional Total $154,900 $160, % % South Central Columbia $137,000 $145, % % South Central Crawford $102,500 $85, % % South Central Dane $190,000 $218, % % South Central Dodge $120,000 $119, % % South Central Grant $81,500 $85, % % South Central Green $123,500 $131, % % South Central Iowa $137,250 $115, % % South Central Jefferson $160,000 $152, % % South Central Lafayette $106,500 $76, % % South Central Richland $93,000 $92, % % South Central Rock $111,500 $112, % % South Central Sauk $129,000 $135, % % South Central Regional Total $157,000 $162, % % West Buffalo $112,500 $92, % % West Chippewa $116,000 $102, % % West Dunn $124,550 $124, % % West Eau Claire $128,400 $122, % % West Jackson $97,900 $88, % % West La Crosse $135,000 $133, % % West Monroe $99,900 $116, % % West Pepin $80,000 $83, % % West Pierce $147,336 $143, % % West St. Croix $152,700 $168, % % West Trempealeau $101,800 $83, % % West Vernon $120,000 $134, % % West Regional Total $128,940 $130, % % *Source: WRA. Beginning with this release, all Wisconsin data at the county and regional levels have been derived using a new system that accesses the raw data of participating MLS s throughout the state. This was done so as to more accurately compute median prices, and more completely measure sales activity in counties in which there are multiple MLS s covering the county. Thus, all 2008 and 2009 data used in this report have been rebenchmarked using this system. Historical data reported on the WRA website will be updated to incorporate this new system over the next three months. Historical data on the website are currently not comparable with sub-state data in this report. 7

8 Table 6: Wisconsin Quarter Four Comparison Q vs. Q totals Region County Q Q % Change Q Q % Change Northeast Brown $129,900 $145, % % Northeast Calumet $143,500 $145, % % Northeast Door $148,825 $190, % % Northeast Fond du Lac $121,500 $115, % % Northeast Green Lake $83,500 $83, % % Northeast Kewaunee $109,100 $110, % % Northeast Manitowoc $101,000 $111, % % Northeast Marinette $77,000 $67, % % Northeast Menominee NA NA NA 7 NA NA Northeast Oconto $102,500 $110, % % Northeast Outagamie $120,759 $132, % % Northeast Shawano $109,500 $100, % % Northeast Waupaca $89,000 $102, % % Northeast Winnebago $112,450 $119, % % Northeast Regional Total $120,000 $127, % % Central Adams $119,000 $102, % % Central Clark $78,750 $75, % % Central Juneau $85,000 $80, % % Central Marathon $125,900 $135, % % Central Marquette $123,000 $109, % % Central Portage $138,250 $122, % % Central Waushara $128,000 $125, % % Central Wood $98,750 $87, % % Central Regional Total $117,000 $110, % % North Ashland $126,700 $97, % % North Barron $105,500 $120, % % North Bayfield $124,000 $130, % % North Burnett $134,600 $150, % % North Douglas $96,400 $105, % % North Florence NA NA NA % North Forest $115,000 $105, % % North Iron $156,000 $125, % % North Langlade $67,500 $68, % % North Lincoln $101,525 $80, % % North Oneida $138,500 $148, % % North Polk $103,000 $126, % % North Price $64,250 $62, % % North Rusk $80,000 $69, % % North Sawyer $165,000 $223, % % North Taylor $105,000 $126, % % North Vilas $179,900 $210, % % North Washburn $100,375 $141, % % North Regional Total $119,450 $124, % % Data on sales volume and median price are derived using data reported to the Wisconsin REALTORS Association by various Multiple Listing Services in the different regions. Neither median price, nor sales volume data have been seasonally adjusted. Participating MLS's include Central Wisconsin MLS, Door County Board of REALTORS, Green Lake/Ripon Board of Realtors, Marinette County Board of Realtors, MetroMLS, Northstar MLS, Northwestern Wisconsin MLS, REALTORS Association of Northeast Wisconsin, South Central MLS and Superior Area Association of REALTORS. Sales data include single-family, condo/co-op and duplex properties. They do not include properties sold by private owners that would not appear on the MLS Sales data include single-family, condo/co-op and duplex properties. Median price calculations are not made if there are fewer than 10 sales in the county. 8

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