2010 November Home Sales Report
November Home Sales Fall as Prices Hold Steady
Date: December 20, 2010
MADISON, WI – As expected, November home sales were significantly lower than last November, even as home prices rose slightly, according to data just released by the Wisconsin REALTORS® Association (WRA). Sales of existing homes in November were down 34.0 percent from the November 2009 levels, but median prices were essentially unchanged over the same period, falling just $50 to $135,950.
“These current market figures continue to reflect the distortions caused by the two federal homebuyer tax credit programs last year,” said John Horning, Chairman of the WRA Board of Directors. “The expiration of the first tax credit created artificially high sales last November and the expiration of the second tax credit in June pushed 2010 sales into the first half of the year,” said Horning. “Combined, those events make November 2010 numbers look very weak.” Horning noted that these market distortions are less dramatic when year-to-date figures are compared. “The first eleven months of 2010 was very similar to the same period in 2009, with total sales down just 8.0 percent compared to last year, and prices down less than one percent,” Horning said.
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Horning explained that while the national economy is growing, it’s not growing fast enough to bring the U.S. unemployment rate down from its current level of 9.8 percent. “The unemployment rate remains a concern for the housing industry,” Horning said. Horning noted that job growth in Wisconsin has been modest at approximately 29,000 new jobs since the beginning of the year, and the state unemployment rate is about two percent lower than the national rate. “Governor-elect Walker has indicated that job creation is a top priority, and we are hopeful that he can continue to build on the job gains seen thus far in Wisconsin so that homebuyers can take advantage of the great opportunities in our unique housing market,” said Horning.
The REALTOR® report shows a 14.4 month inventory of homes on the market, which is down from the 15.3 month supply in October. However, due in large part to slow sales since June, the total inventory of homes on the market has risen over the past five months. “With this much inventory, we have an excellent selection of homes and prices throughout the state,“ said WRA President Bill Malkasian. “We continue to see very low mortgage rates, stable home prices, and the preliminary indications are that family income has even grown slightly throughout much of 2010,” he said. As further evidence, Malkasian said Wisconsin’s affordability index compares favorably to other states and the nation. The index measures how much of a median priced home a buyer with the Wisconsin median family income can afford. The Wisconsin Housing Affordability Index stood at 235 for November, which is up from 217 in November of last year. “Wisconsin housing is extremely affordable compared to past years and compared to other states, making this a great time to buy a home,” said Malkasian.