First Quarter Home Sales Decline as Prices Continue to Rise

Date: 4/22/19 For Release: Immediately For More Information Contact: Michael Theo, WRA President & CEO, 608-241-2047, mtheo@wra.org or David Clark, Economist, ECON Analytics, LLC and Professor of Economics, quette University, 414-803-6537, prof.clark@gmail.com First Quarter Home Sales Decline as Prices Continue to Rise MADISON, Wis. Existing home sales fell sharply in ch, and declining inventories put more pressure on home prices, according to the most recent examination of the state housing market by the Wisconsin REALTORS Association (WRA). Home sales fell 14.1 percent in ch 2019 compared to that same month last year, and median prices were up 6.3 percent to $185,000 over that same period. The first quarter picture was similar but a bit brighter, with first quarter home sales down 7.4 percent, relative the first quarter of 2018, and the quarterly median price up 5.5 percent to $179,300 over the past year. The economy is in good shape, and that puts a lot of pressure on a housing market with limited supply, said WRA Chairman Jean Stefaniak. In fact, the Wisconsin unemployment rate has ranged between 2.9 percent and 3.1 percent over the last 12 months, and the most recent estimate for February is at the low end of that range. In addition, while job growth is not as robust as it has been the last couple of years, there were still 11,400 nonfarm jobs created over the 12 months ending in February 2019. The bitter temperatures and heavy snowfall likely slowed buyer traffic in January and February, which contributed to fewer closed sales in ch, Stefaniak said, but she blamed most of the slowdown on the sparse supply of homes for sale, not the weather-related reduction in demand. REALTORS can t sell properties that aren t on the market, and the available supply continues to be very tight, she said. In fact, there were just 3.8 months of supply in ch, which is down from 4.3 months a year earlier. Metropolitan counties, which include Wisconsin s larger cities, had just 3.2 months of supply in ch, whereas micropolitan counties, which include towns and smaller cities, had 4.4 months of supply. The housing market has tightened up everywhere, but it s really tight in the urban communities, said Stefaniak. Only the less populated rural counties had a balanced market, at 6.4 months of available housing supply. With this level of price pressure, we would expect to see a significant erosion in housing affordability, said WRA President & CEO Michael Theo, but he noted there have been mitigating factors. Luckily a slight reduction in mortgage rates, combined with moderate growth in family income, has helped keep Wisconsin housing relatively affordable, he said. The Wisconsin Affordability Index measures the portion of the median-priced home that a buyer with median family income can afford to buy, assuming a healthy 20 percent down payment and a 30-year fixed-rate mortgage on the remaining balance. The index fell from 214 in ch 2018 to 203 in ch 2019. The index still shows that a typical buyer is qualified to purchase more than twice the median-priced home, which is remarkable given how much housing prices have appreciated over the past seven years, said Theo. Median prices began rising in spring 2012, after a significant slide resulting from the Great Recession. Since ch 2012, the median price has increased by slightly over 50 percent. Although housing is less affordable today than in 2012, there are still good deals to be had in today s market, said Theo, but he indicated that buyers need to have their financing lined up and they need the guidance of a REALTOR who is experienced. Sellers definitely have the advantage in this market, so moving quickly is critical when your REALTOR finds the right home for your needs, said Theo. The Wisconsin REALTORS Association is one of the largest trade associations in the state, representing over 16,400 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 is subject to revision if more complete data becomes available. Beginning in June 2018, all historical sales volume and median price data from 2015 forward at the county level have been re-benchmarked using the Relitix system that accesses MLS data directly and in real-time. Data prior to January 2015 is derived from the Techmark system that also accessed MLS data directly. 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

Summary of Wisconsin Housing Statistics Monthly Year-to-Date 2019 2018 % Change 2019 2018 % Change Unit Sales 5,235 6,094-14.1% 13,195 14,248-7.4% Median Price $185,000 $174,000 +6.3% $179,300 $169,900 +5.5% New Listings 8,510 10,046-15.3% x x x Total Listings 26,386 30,692-14.0% x x x Months of Inventory 3.8 4.3-11.6% x x x Average Days on ket 109 118-7.6% x x x WI Housing Affordability Index 203 214-5.1% x x x Price Range Total 2019 Listings Housing Price Range Statistics Average Total Sold Days on (Apr 2018 - ket 2019) (Apr 2018-2019) Total Volume Sold (Apr 2018-2019) Months of Inventory (Apr 2018-2019) $0-$124,999 5,795 156 19,573 $1,629,659,710 3.6 $125,000 - $199,999 5,933 113 25,806 $4,116,871,367 2.8 $200,000 $349,999 8,047 119 25,936 $6,799,224,456 3.7 $350,000 - $499,999 3,506 130 7,487 $3,024,676,305 5.6 $500,000 and higher 3,105 170 3,659 $2,626,056,275 10.2 Inventory by Urban Classification type 2019 2018 Metropolitan Counties Combined 3.2 3.5 Micropolitan Counties Combined 4.4 4.8 Rural Counties Combined 6.4 7.4 All Wisconsin Counties 3.8 4.3 Metropolitan counties include: Brown, Calumet, Chippewa, Columbia, Dane, Douglas, Eau Claire, Fond du Lac, Green, Iowa, Kenosha, Kewaunee, La Crosse, athon, Milwaukee, Oconto, Ozaukee, Outagamie, Pierce, Racine, Rock, Sheboygan, St. Croix, Washington, Waukesha, and Winnebago. Micropolitan counties include: Dodge, Dunn, Florence, Grant, Jefferson, Lincoln, Manitowoc, inette, Menominee, Portage, Sauk, Shawano, Walworth and Wood. Rural counties include: Adams, Ashland, Barron, Bayfield, Buffalo, Burnett, Clark, Crawford, Door, Forest, Green Lake, Iron, Jackson, Juneau, Lafayette, Langlade, quette, Monroe, Oneida, Pepin, Polk, Price, Rusk, Richland, Sawyer, Taylor, Trempealeau, Vernon, Vilas, Washburn, Waupaca and Waushara.

Report Criteria: Reflecting data for: ch 2019 State: WI Type: Residential Median Price Sales Months Inventory Avg Days On ket Central Adams 140,000 111,000 +26.1% 29 33-12.1% 7.6 7.1 +7.0% 145 246-41.1% Clark 90,450 99,450-9.0% 10 24-58.3% 6.8 5.3 +28.3% 198 168 +17.9% Juneau 148,500 107,450 +38.2% 22 26-15.4% 6.2 6.2 0.0% 136 141-3.5% athon 170,500 153,000 +11.4% 111 141-21.3% 3.3 3.7-10.8% 104 116-10.3% quette 114,000 93,900 +21.4% 14 13 +7.7% 7.0 7.9-11.4% 210 158 +32.9% Portage 162,000 163,750-1.1% 45 54-16.7% 3.0 3.3-9.1% 104 124-16.1% Waushara 130,000 136,000-4.4% 19 34-44.1% 5.1 6.0-15.0% 157 208-24.5% Wood 124,500 123,500 +0.8% 42 67-37.3% 3.3 4.2-21.4% 125 118 +5.9% Central al Total 150,000 132,700 +13.0% 292 392-25.5% 4.4 4.7-6.4% 125 142-12.0% Median Price Sales Months Inventory Avg Days On ket North Ashland 50,000 49,500 +1.0% 11 10 +10.0% 13.5 10.0 +35.0% 132 217-39.2% Barron 161,950 125,000 +29.6% 50 37 +35.1% 4.2 4.6-8.7% 126 118 +6.8% Bayfield 165,000 162,000 +1.9% 18 23-21.7% 13.5 11.8 +14.4% 191 170 +12.4% Burnett 135,000 165,000-18.2% 37 45-17.8% 3.8 5.0-24.0% 129 108 +19.4% Douglas 121,450 94,000 +29.2% 38 43-11.6% 7.7 4.6 +67.4% 90 109-17.4% Florence NA NA NA NA NA NA 21.0 14.8 +41.9% NA NA NA Forest NA NA NA 8 4 +100.0% 6.9 14.3-51.7% 100 366-72.7% Iron NA NA NA 5 5 0.0% 14.3 18.6-23.1% 240 214 +12.1% Langlade 102,450 70,000 +46.4% 10 30-66.7% 8.3 6.3 +31.7% 295 139 +112.2% Lincoln 141,700 112,600 +25.8% 32 32 0.0% 5.1 7.0-27.1% 189 201-6.0% Oneida 173,500 149,900 +15.7% 38 44-13.6% 6.1 8.6-29.1% 162 206-21.4% Polk 212,800 141,000 +50.9% 44 36 +22.2% 3.5 3.7-5.4% 144 105 +37.1% Price 136,450 85,000 +60.5% 22 23-4.3% 10.6 14.1-24.8% 235 270-13.0% Rusk 69,900 77,450-9.7% 11 14-21.4% 6.3 9.0-30.0% 99 472-79.0% Sawyer 270,000 198,500 +36.0% 23 36-36.1% 9.0 10.7-15.9% 222 288-22.9% Taylor 155,000 105,000 +47.6% 13 19-31.6% 6.1 9.0-32.2% 190 245-22.4% Vilas 202,500 171,200 +18.3% 32 47-31.9% 7.2 10.5-31.4% 209 377-44.6% Washburn 164,900 170,750-3.4% 21 24-12.5% 6.6 7.9-16.5% 141 161-12.4% North al Total 150,000 132,750 +13.0% 413 472-12.5% 6.7 7.6-11.8% 161 202-20.3%

Median Price Sales Months Inventory Avg Days On ket Northeast Brown 175,000 189,000-7.4% 239 284-15.8% 3.2 3.3-3.0% 102 106-3.8% Calumet 164,900 174,750-5.6% 63 80-21.3% 3.8 3.4 +11.8% 106 109-2.8% Door 200,000 171,875 +16.4% 39 43-9.3% 7.2 9.6-25.0% 204 246-17.1% Fond du Lac 124,900 130,000-3.9% 103 133-22.6% 3.6 4.5-20.0% 131 145-9.7% Green Lake 138,500 126,250 +9.7% 18 16 +12.5% 6.7 8.0-16.3% 207 302-31.5% Kewaunee 106,900 80,000 +33.6% 13 15-13.3% 4.8 5.6-14.3% 93 162-42.6% Manitowoc 114,000 87,700 +30.0% 83 70 +18.6% 3.9 4.2-7.1% 112 143-21.7% inette 112,500 112,500 0.0% 51 57-10.5% 5.6 7.9-29.1% 134 236-43.2% Menominee NA NA NA 1 NA NA 4.9 11.4-57.0% 217 NA NA Oconto 154,000 140,000 +10.0% 32 45-28.9% 5.2 7.4-29.7% 167 205-18.5% Outagamie 174,900 180,500-3.1% 153 152 +0.7% 2.9 3.0-3.3% 82 88-6.8% Shawano 120,000 89,950 +33.4% 33 22 +50.0% 6.0 5.8 +3.4% 128 239-46.4% Waupaca 142,000 120,500 +17.8% 51 51 0.0% 5.5 6.4-14.1% 166 143 +16.1% Winnebago 135,900 133,000 +2.2% 135 181-25.4% 3.1 3.6-13.9% 105 110-4.5% Northeast al Total 154,750 144,500 +7.1% 1,014 1,149-11.7% 4.0 4.5-11.1% 117 134-12.7% Median Price Sales Months Inventory Avg Days On ket South Central Columbia 181,250 207,500-12.7% 52 67-22.4% 3.9 4.6-15.2% 125 89 +40.4% Crawford NA 126,250 NA 9 12-25.0% 8.3 6.8 +22.1% 166 140 +18.6% Dane 281,000 274,500 +2.4% 561 628-10.7% 3.1 3.4-8.8% 100 100 0.0% Dodge 148,850 131,200 +13.5% 72 82-12.2% 4.0 3.7 +8.1% 123 124-0.8% Grant 152,000 135,700 +12.0% 32 31 +3.2% 5.1 6.0-15.0% 132 138-4.3% Green 172,000 170,000 +1.2% 29 24 +20.8% 3.3 3.8-13.2% 91 100-9.0% Iowa 180,000 144,000 +25.0% 16 13 +23.1% 5.2 7.0-25.7% 148 116 +27.6% Jefferson 207,500 182,000 +14.0% 71 85-16.5% 3.9 3.6 +8.3% 129 122 +5.7% Lafayette NA NA NA 9 9 0.0% 4.7 6.6-28.8% 114 132-13.6% Richland NA 150,900 NA 6 16-62.5% 5.6 5.7-1.8% 234 126 +85.7% Rock 161,650 153,000 +5.7% 160 167-4.2% 2.8 3.0-6.7% 104 107-2.8% Sauk 189,950 185,000 +2.7% 62 73-15.1% 4.5 5.2-13.5% 117 164-28.7% South Central al Total 229,900 220,000 +4.5% 1,079 1,207-10.6% 3.5 3.8-7.9% 109 110-0.9%

Median Price Sales Months Inventory Avg Days On ket Southeast Kenosha 180,297 160,000 +12.7% 180 165 +9.1% 2.9 3.2-9.4% 82 96-14.6% Milwaukee 160,000 149,000 +7.4% 821 1,010-18.7% 3.0 3.5-14.3% 81 87-6.9% Ozaukee 287,500 290,000-0.9% 97 108-10.2% 4.0 4.3-7.0% 100 93 +7.5% Racine 163,000 163,450-0.3% 165 226-27.0% 3.0 3.0 0.0% 87 90-3.3% Sheboygan 150,000 139,250 +7.7% 100 108-7.4% 3.6 3.9-7.7% 118 127-7.1% Walworth 221,000 193,500 +14.2% 126 158-20.3% 5.1 5.4-5.6% 137 133 +3.0% Washington 253,000 244,700 +3.4% 128 172-25.6% 3.1 2.9 +6.9% 94 95-1.1% Waukesha 295,485 279,000 +5.9% 359 415-13.5% 3.3 3.2 +3.1% 92 93-1.1% Southeast al Total 197,950 184,950 +7.0% 1,976 2,362-16.3% 3.3 3.5-5.7% 91 95-4.2% Median Price Sales Months Inventory Avg Days On ket West Buffalo NA NA NA 9 2 +350.0% 7.3 7.7-5.2% 183 75 +144.0% Chippewa 172,000 179,450-4.2% 41 46-10.9% 3.6 3.9-7.7% 113 101 +11.9% Dunn 169,000 146,000 +15.8% 39 31 +25.8% 3.1 4.4-29.5% 139 132 +5.3% Eau Claire 177,000 168,000 +5.4% 89 103-13.6% 2.7 3.8-28.9% 99 109-9.2% Jackson 135,000 117,000 +15.4% 15 15 0.0% 5.7 7.3-21.9% 146 194-24.7% La Crosse 180,000 192,500-6.5% 83 124-33.1% 2.5 2.7-7.4% 91 96-5.2% Monroe 157,000 127,500 +23.1% 39 37 +5.4% 4.5 4.8-6.3% 124 178-30.3% Pepin NA NA NA 6 9-33.3% 4.1 7.0-41.4% 125 178-29.8% Pierce 232,500 231,000 +0.6% 21 21 0.0% 2.8 3.8-26.3% 77 124-37.9% St. Croix 230,000 228,250 +0.8% 89 82 +8.5% 2.7 3.2-15.6% 119 91 +30.8% Trempealeau 143,400 96,750 +48.2% 18 24-25.0% 5.2 4.9 +6.1% 155 128 +21.1% Vernon 151,200 148,500 +1.8% 12 18-33.3% 4.4 5.9-25.4% 231 162 +42.6% West al Total 183,900 177,000 +3.9% 461 512-10.0% 3.2 3.9-17.9% 116 115 +0.9%

Statewide Median Price Statewide Sales Statewide Avg Days On ket 185,000 174,000 +6.3% 5,235 6,094-14.1% 109 118-7.6% Statewide Months Inventory Statewide New Listings Statewide Total Listings 3.8 4.3-11.6% 8,510 10,046-15.3% 26,386 30,692-14.0% Listing Price Range Current Properties For Sale Price Range Stats Avg Days On ket (sold listings) Number of Sales in Prev 12 months Total Sales in Prev 12 Months Months Inventory $0 - $124,999 5,795 156 19,573 1,629,659,710 3.6 $125,000 - $199,999 5,933 113 25,806 4,116,871,367 2.8 $200,000 - $349,999 8,047 119 25,936 6,799,224,456 3.7 $350,000 - $499,999 3,506 130 7,487 3,024,676,305 5.6 $500,000+ 3,105 170 3,659 2,626,056,275 10.2 Months of Inventory by Broad Urban-Rural Classification Category ch 2019 ch 2018 Metropolitan Counties Combined 3.2 3.5 Micropolitan Counties Combined 4.4 4.8 Rural Counties Combined 6.4 7.4 State Total 3.8 4.3

Report Criteria: Reflecting YTD data through: ch 2019 State: WI Type: Residential Central Adams 135,000 96,450 +40.0% 70 88-20.5% Clark 91,000 106,000-14.2% 41 54-24.1% Juneau 112,250 95,700 +17.3% 62 74-16.2% athon 164,900 146,000 +12.9% 284 341-16.7% quette 112,000 95,000 +17.9% 31 51-39.2% Portage 163,562 163,000 +0.3% 119 137-13.1% Waushara 120,000 129,000-7.0% 57 80-28.8% Wood 107,000 98,000 +9.2% 117 143-18.2% Central al Total 141,000 131,750 +7.0% 781 968-19.3% North Ashland 73,000 70,950 +2.9% 39 32 +21.9% Barron 150,000 130,000 +15.4% 131 99 +32.3% Bayfield 140,500 133,750 +5.0% 53 50 +6.0% Burnett 131,250 150,000-12.5% 96 103-6.8% Douglas 118,950 103,000 +15.5% 98 102-3.9% Florence NA NA NA NA NA NA Forest 99,950 149,000-32.9% 22 12 +83.3% Iron 154,950 173,900-10.9% 14 15-6.7% Langlade 107,450 70,000 +53.5% 32 83-61.4% Lincoln 121,000 110,200 +9.8% 72 95-24.2% Oneida 170,000 162,000 +4.9% 107 146-26.7% Polk 199,025 142,000 +40.2% 114 97 +17.5% Price 135,000 106,500 +26.8% 40 45-11.1% Rusk 75,000 98,900-24.2% 33 21 +57.1% Sawyer 225,000 215,000 +4.7% 73 87-16.1% Taylor 139,900 119,000 +17.6% 32 30 +6.7% Vilas 187,500 196,150-4.4% 84 106-20.8% Washburn 125,950 128,500-2.0% 70 61 +14.8% North al Total 143,500 135,000 +6.3% 1,110 1,184-6.3%

Northeast Brown 177,000 176,000 +0.6% 557 619-10.0% Calumet 180,000 166,250 +8.3% 137 160-14.4% Door 195,000 215,839-9.7% 114 118-3.4% Fond du Lac 131,600 130,000 +1.2% 258 291-11.3% Green Lake 127,500 132,250-3.6% 58 58 0.0% Kewaunee 114,900 115,000-0.1% 60 31 +93.5% Manitowoc 111,750 90,000 +24.2% 200 207-3.4% inette 122,000 86,000 +41.9% 122 109 +11.9% Menominee NA NA NA 2 3-33.3% Oconto 164,000 154,200 +6.4% 88 98-10.2% Outagamie 171,500 172,250-0.4% 400 378 +5.8% Shawano 99,000 115,000-13.9% 64 67-4.5% Waupaca 142,000 120,500 +17.8% 106 113-6.2% Winnebago 141,000 134,900 +4.5% 335 420-20.2% Northeast al Total 154,900 146,000 +6.1% 2,501 2,672-6.4% South Central Columbia 172,000 183,000-6.0% 117 149-21.5% Crawford 97,450 128,900-24.4% 28 27 +3.7% Dane 279,950 271,600 +3.1% 1,351 1,436-5.9% Dodge 150,000 135,000 +11.1% 159 193-17.6% Grant 150,000 138,000 +8.7% 65 71-8.5% Green 172,000 152,500 +12.8% 79 74 +6.8% Iowa 177,500 134,500 +32.0% 36 44-18.2% Jefferson 212,000 186,750 +13.5% 196 214-8.4% Lafayette 120,000 105,000 +14.3% 27 21 +28.6% Richland 125,850 135,000-6.8% 24 31-22.6% Rock 152,250 146,500 +3.9% 421 395 +6.6% Sauk 189,900 185,000 +2.6% 163 163 0.0% South Central al Total 225,000 219,000 +2.7% 2,666 2,818-5.4%

Southeast Kenosha 175,000 157,150 +11.4% 414 408 +1.5% Milwaukee 154,850 143,000 +8.3% 2,100 2,294-8.5% Ozaukee 290,000 287,100 +1.0% 199 217-8.3% Racine 160,000 152,200 +5.1% 493 530-7.0% Sheboygan 151,000 138,100 +9.3% 256 256 0.0% Walworth 194,000 199,950-3.0% 314 330-4.8% Washington 228,000 240,000-5.0% 295 389-24.2% Waukesha 285,450 270,500 +5.5% 920 951-3.3% Southeast al Total 188,000 175,000 +7.4% 4,991 5,375-7.1% West Buffalo 151,000 103,400 +46.0% 17 16 +6.3% Chippewa 155,000 175,000-11.4% 114 116-1.7% Dunn 157,000 171,000-8.2% 93 74 +25.7% Eau Claire 180,000 161,500 +11.5% 241 238 +1.3% Jackson 144,950 117,000 +23.9% 40 35 +14.3% La Crosse 184,900 170,000 +8.8% 215 275-21.8% Monroe 149,000 135,600 +9.9% 79 83-4.8% Pepin 117,000 117,500-0.4% 13 28-53.6% Pierce 217,500 186,250 +16.8% 48 56-14.3% St. Croix 232,500 228,000 +2.0% 211 217-2.8% Trempealeau 137,900 125,000 +10.3% 39 45-13.3% Vernon 133,750 149,000-10.2% 36 48-25.0% West al Total 179,900 171,000 +5.2% 1,146 1,231-6.9% YTD Statewide Median Price YTD Statewide Sales 179,300 169,900 +5.5% 13,195 14,248-7.4%