MLS

January 2010 Statistics

Metro Home Sales Up 2.4% for January 2010

Sales in the 4-county Metropolitan Milwaukee area rose 2.4% for January 2010, compared to the same time in 2009, according to housing statistics released by Metro MLS, Inc.

Individual counties saw mixed reviews in January with Milwaukee County starting the new year down 6.4%, Waukesha County came in with a healthy 13.7% increase in sales, and Washington County also had a strong month, posting a 10.3% increase in sales. Ozaukee County had a 65.2% increase in sales, but the county’s number of sales was 38 in January, compared to 23 last year.

January’s numbers come on the heels of a history making year in 2009, which suffered from the depths of the national recession and an unprecedented explosion of purchases in the 4th quarter due to the $8,500 Home Buyer Tax Credit.

Determining the health of the market based on January sales numbers is difficult, because actual sales numbers are much lower than when the market is busier and, therefore, more prone to larger swings.

The bottom line is, sellers should not be under the impression than the market is turning in their favor. A review of January’s numbers compared to January 2008 – when the market was on the front-end of the recessionary slide – reveal that Milwaukee County was down 20.8%, Waukesha was down 28.4%, Washington 27.1%, and Ozaukee up 8.6%.

Brokers are happy that the federal tax credit has been extended, and the manner in which it will expire: allowing buyers to have until April 30th to make an offer that is accepted, and until June 30th to close the sale. Additional market dynamics consisting of price decreases, historically low interest rates, and abundant choices, should motivate buyers to take advantage of the market.

The $6,500 expansion of the tax credit for existing buyers has resulted in a more activity since the New Year. The over $250,000 market – which was stagnant prior to the credit expansion – is expected to see more sales.

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