Date:  November 9, 1999

For More Information Contact: John Englehardt, Research Consultant 

Madison- For the eighth consecutive quarter, sales of existing single family homes in Wisconsin sold at a record-setting pace as 1999 third quarter sales for the state surpassed 1998’s record level by 2.5%, according to the most recent report from the Wisconsin REALTORS® Association (WRA) on the statewide home resale market.

Sales of existing homes in Wisconsin for the third quarter of 1999 were estimated to be 26,075 units*, up 2.5% from the 1998 record third quarter of 25,450 units sold. Nationally, home sales were up 6.6%, while the Midwest saw an increase of 3.1% over 1998’s third quarter figure.

"We are running out of superlatives to describe just how hot this home resale market really is," says WRA president William Berland. "If you had asked me a year ago if I thought we could sustain sales at such high levels throughout 1999, I would have been skeptical. Nevertheless, here we are setting our sights now on another record year," adds Berland.

"While there are many different elements driving this years sales compared with last, the one constant is consumer confidence, which continues to remain strong" says William Malkasian, WRA executive vice-president. But Malkasian believes the new millennium may also play a role. According to Malkasian, "The so-called Y2K bug, be it a real concern or not, has thrown a level of uncertainty into other investment venues such as the stock market. People perceive the investment in their home as a less volatile safe haven for their money. People seem willing to take some of the investment profits from the 1990’s and roll it into their home rather than reinvest it in the more risky stock market. The old adage ‘better safe than sorry’ seems to be applicable in today’s real estate market."

Percentage changes in multiple listing service sales for the third quarter 1999 vs. 1998’s third quarter for selected counties around Wisconsin include increases in Winnebago County +13.1%, Sheboygan County +11.3%, Racine County +8.8%, Ozaukee County +7.4%, Walworth County +5.4%, Door County +3.7%, Dane County +3.6%, Milwaukee County +2.6%, Washington County +1.9%, Waupaca County +1.4% and Fond Du Lac County +0.5%. Decreases in sales were seen in LaCrosse County -2.2%, Eau Claire County -3.0%, Kenosha County –3.2, Outagamie County –3.92% Brown County -4.0%, Columbia County -5.4%, Waukesha County –7.9%, St. Croix County -10.0%. Rock County recorded the same number of sales for the third quarter of both years.

The median price of an existing single-family home in Wisconsin for the third quarter of 1999 was $115,900; a 2.5% increase over the 1998 figure of $112,700 for the same period. Over the same one-year period, Midwest prices have risen 5.2% to $122,700 for the third quarter 1999, while the United States has seen an overall increase in the median home price of 4.1%, reaching a third-quarter price level of $136,000.

Statewide, the median price is just keeping pace with inflation, though however many areas around the state have seen somewhat larger increases for the third quarter 1999. According to Berland "This is more the result of the hot sales market than anything else. Many areas just don’t have enough homes for sale to keep up with the number of buyers. Multiple buyers competing for the same property will tend to push prices up."

Comparative percentage changes in median price for the third quarter of 1999 vs.1998’s third quarter by selected counties around Wisconsin include increases: Ozaukee County +13.3% to 185,900, Eau Claire County +12.7% to $98,700, Door County +10.3% to $146,700, Outagamie County +8.7% to $105,700, Sheboygan County +8.5% to $98,800, Waukesha County +7.6% to $173,200, Washington County +7.4% to $147,100, Kenosha County +5.8% to $113,900, Dane County +5.2 to $143,500, Brown County +4.3% to $114,200, Walworth County +3.7% to $125,100, Winnebago County +3.5% to $91,900, Rock County +3.2% to $94,800 and Columbia County +1.9% to $111,500, St Croix County +1.7% to 132,800 and Milwaukee County +0.8 to $99,900 . Median price decreases include: La Crosse County -0.6% to 95,500, Waupaca County –2.3% to $83,300, Racine County –3.9% to $103,700, and Fond Du Lac County –8.4% to 89,000.

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.