Date:  November 17, 1998

For More Information Contact: John Englehardt, Research Consultant 

Madison- Sales of existing single family homes in Wisconsin continue their record setting pace through the third quarter of 1998, according to the most recent report from the Wisconsin REALTORS® Association on the statewide home resale market.

Sales for the third quarter in Wisconsin were estimated to be 30,175 units; up 13.3 percent over 1997’s third quarter figure of 26,625. The 30,175 sales figure is the most ever for a third quarter.

"In fact," said WRA president Dan Lee, "every quarter thus far in 1998 has set a sales record. Since October 1997 the home resale market has been like a runaway train; just when you think it should run out of steam it takes off again."

William Malkasian, WRA executive vice president, added "the third quarter sales figures are especially strong when you consider all that was going on in the economy during the quarter. For example, we had the Asian monetary crisis; talk about impeachment and to make matters worse, the stock market was way down for most of the period. All of these factors had to be wearing on consumer confidence and yet when it came to home-buying, the public was apparently unfazed".

Sales across the nation were also reflective of a strong market with resales up 12.7 over last years third quarter while similarly, the Midwest figure also rose 12.7 percent. Third quarter sales for the state were also 1.3 percent above the second quarter 1998 figure.

Percentage changes in sales for the third quarter 1998 vs. third quarter 1997 by selected counties around Wisconsin include increases in Walworth County 33.4%, Washington County 24.2%, St Croix County 23.6%, Ozaukee County 22.6%, Waukesha County 21.9%, Rock County 17.1%, Brown County 16.3%, Outagamie County 12.3%, Winnebago County 10.0%, Kenosha County 8.6%, Milwaukee County 5.8%, and Dane 1.2%. Sales decreases occurred in Racine County (4.0%) and in Eau Claire County (12.6%) over the same third quarter periods.

According to Lee, "with three record quarters in a row, 1998 is on pace to shatter any and all Wisconsin sales records. I can’t imagine a scenario that would keep a record from happening. To be able to make that statement in November is just another example of what a truly remarkable year this has been for the real estate industry." Home sales of 104,600 units is the current state record set in 1997.

The median price of an existing single family home in Wisconsin reached $112,700 for the quarter, up 1.9 percent from the second quarter of 1998. On the year prices are up 7.9 percent reaching a statewide median of $110,600 up from the 1997-year total of $102,500. Midwest prices have increased 7.2 percent from a year ago while the United States has seen an overall increase of 4.9 percent.

"When you consider how low mortgage rates have been this year price increases of this magnitude are from a historical perspective quite modest," said Malkasian. He added, "affordability has likely been an important aspect of the 1998 market because much of the market boom has been fueled by first time homebuyers, fortunately these people haven’t been hurt by price increases as has happened in the past." Malkasian sites 1993 as an example. "We had low rates, lots of demand and prices growing in many places over 20 percent on the year, many buyers were priced right out of the market".

Percentage increases in median price for third quarter 1998 vs. third quarter 1997 by selected counties around Wisconsin include; Racine County 14.9%, St Croix County 10.1%, Rock County 7.4%, Outagamie County 7.1%, Milwaukee County 6.2%, Brown County 5.1%, Kenosha County 4.4%, Winnebago County 3.6%, Dane County 2.4%, Waukesha County 1.5%, and Eau Claire County no change. Slight decreases in median price were experienced in Washington County (0.4%), Ozaukee County (2.1%) and Walworth County (2.2%).

The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 12,000 real estate brokers, sales people and affiliates statewide.