MLS

2009 May MLS Statistics Analysis

Sales were down in just about every county in southeastern Wisconsin in May compared to a year ago, according to housing statistics released by Metro MLS, Inc. today.

A notable exception to the regional data was in Milwaukee County, which saw its second consecutive month of positive sales numbers.

Brokers have been reporting an increase in sales activity throughout southeastern Wisconsin beginning with the start of the spring selling season, which could result in more sales in the next 30- to 60-days.

A primary cause of the increased activity is that buyers recognize the unique historical opportunity today’s market presents, and the prospect of building equity in the future.

However, putting deals together is as challenging as ever. In many markets sellers are still being sticklers when it comes to correctly pricing their home for the marketplace.

Also, property appraisals and lender underwriting are complicating transactions according to brokers. Appraisers are being ‘stingy’ when assessing a property’s value and when a lender’s underwriting department reviews the appraisal they are often questioning the appraisal’s validity, or rejecting the loan altogether; killing the transaction.

Additionally, although HUD has authorized FHA lenders to create loan products that would allow buyers to utilize the $8,000 home buyer tax credit up front in the purchase of a home, the GMAR is not aware of any lending institutions in the Milwaukee area that have created such a product.

While today’s market has settled down some and is advantageous to buyers, it is not flat and will experience ups and downs on a neighborhood-by-neighborhood basis, until the overall economy recovers. This is particularly true given the lag between an economic recovery that many are indicating is beginning now and increased employment, which may be several months off.

In these confusing times, consumers should remember to “Start With A REALTOR®” before consulting with a lender or other housing professional.

Highlights from the May 2009 MLS Statistics Report for the 4-county area:

Sales
• Sales of 1,267 units in May was down 8.7% compared to May 2008’s 1,387 and 28.7% behind 2007’s 1,777.

Listings
• There were 3,080 new listings in May, marking the 22st straight month of decreasing listings, in year-to-year comparisons.

• The 3,080 listings in May are 14.4% less than 2008’s 3,597, and 24.6% behind 2007’s 4,086.

Note: In comparing 2007 numbers to today it is important to remember that, while the market was slowing in 2007, it was fairly healthy in the spring; the market did not begin its serious slowdown until July of that year, when the sub-prime market crashed.

Southeastern Wisconsin County-by-county analysis

Milwaukee County: The county offers a bright spot in the market as sales increased 1.9% over 2008 (802 vs. 787 units, respectively).

The increase in sales is mainly due to the decrease in prices seen in the county –particularly the City of Milwaukee – encouraging first-time buyers and investors to buy. This is a trend that we expect to continue and eventually spread to suburban communities and counties.

Listings in the county were down 18.3% compared to 2008 (1,692 vs. 2,071), and 27.6% vs. 2007 (2,336).

Waukesha County: Sales in Waukesha were down 20.4% compared to 2008 (305 vs. 383, respectively), and down 39.2% from 2007’s number of 502.

Listings of 849 were down 11.7% compared to 962 in 2008, and down 24.2% compared to 1,120 in 2007.

Ozaukee County: The county saw a decrease in sales of 25.3% (59 vs. 79, respectively) in 2009 vs. 2008, and a 42.2% decline vs. 2007’s 102 units.

Listings were down 13.5% in 2009 compared to 2008, and down 23.8% compared to 2007 (198, 229 and 260, respectively).

Washington County: Sales were down 26.8% to 101 units in 2009, vs. 138 units in 2008, and down 48.2% compared to 2007’s 195.

Listings were up 1.3% to 341 vs. 335 in 2008, and off 7.8% from 2007’s 370.

Racine County: Sales were down 18.6% compared to 2008 (171 vs. 210, respectively), and down 27.8% from 2007’s 237.

Listings of 387 were down 27.3% compared to 532 in 2008, and down 37.3% compared to 617 in 2007.

Kenosha County: The county saw a decrease in sales of 16.7% (135 vs. 162, respectively) in 2009 vs. 2008, and a 38.4% decline vs. 2007’s 219 units.

Listings were down 25.8% in 2009 compared to 2008, and down 21.6% compared to 2007 (391, 527 and 499, respectively).

Walworth County: Sales were down 6.7% to 97 units in 2009, vs. 104 units in 2008, and down 38.2% compared to 2007’s 157.

Listings in May were down 22.8% to 305 vs. 395 in 2008, and off 29.1% from 2007’s 430.