Home Sales Up 15% in January
February 12, 2013 – The 4-county Metropolitan Milwaukee housing market started 2013 in the same fashion it ended 2012, increasing sales over the previous year. Sales in January were 15% above January of 2012.
January marked the 19th month in a row that home sales increased over the previous year. The 874 January sales were the most for that month since 2007 (971), before the Great Recession began.
While there is a substantial amount of relief in the continued success of the housing recovery, there is also concern over the paltry level of inventory the market is carrying as we approach the spring selling season.
The market has 11.0-months of inventory (calculated by the number of active listings divided by the previous month’s sales), which is well below the 15.4-months from January 2012. To put that in perspective, over the last 6-years the number of months of inventory was usually in the upper teens or low 20s in January.
Only 1,889 homes were listed in January 2013, down 13.7% from a year earlier. January’s listings were the fewest the market has had in that month since 2000, when 1,784 homes were listed.
A major reason for the lackluster level of listings is sellers’ fear of not getting a good price for their home. Certainly, sellers will probably not fetch prices from the peak of the market, however, prices are starting to stabilize in many areas – though buyers are demanding concessions to complete a sale.
We cannot say with confidence that the Milwaukee market will see prices rise universally in 2013, but with consumer confidence and employment stable, and with interest rates historically low, many areas of our market could see some appreciation as we move through the year.
Sellers need to consult with their REALTOR® to determine the appropriate listing price for their home given current market conditions in their neighborhood and community.
Days on Market
While listings are lagging, buyers are very active. Of the closings in the 4-county area in January, 40.8% sold in less than 60-days. An additional 15.7% sold in under 90-days, for a total of 56.5% of sales from properties listed since October or November.
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