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Wisconsin Housing Market Continues To Outperform Region and
Nation
Date: November 14, 2001
For More Information Contact: David E. Clark, Economist, C3 Statistical Solutions Inc.,
Office phone: 262-549-4992, Cell phone: 414-803-6537
Madison - Falling interest rates and low unemployment kept Wisconsin real estate markets robust as home sales in Wisconsin grew by nearly 7% (or 25,450 homes on a seasonally adjusted basis) in the third quarter 2001 compared to the same period in 2000, according to recently released data from the National Association of
REALTORS®. Wisconsin outperformed both the nation, which grew by 4.5%, and the Midwest region which expanded by 5.2%.
"Aggressive actions by the Federal Reserve Board to lower interest rates in response to a shrinking economy has certainly helped fuel growth in our housing market," said Matt Miller, Chairman of the Board for the Wisconsin REALTORS® Association (WRA). "Conventional 30 year mortgage rates are now below 7% and recent Fed action will likely exert additional downward pressure in the fourth quarter," Miller added.
Multiple Listing Service (MLS) data for Wisconsin counties reveals sales in most areas of the state are above third quarter levels from one year ago. In the Southeast, third quarter home sales were up 3.3% with most counties experiencing positive growth in 2001 compared to 2000. The strongest growth was in the suburban Milwaukee counties.
The South Central region of the state experienced vigorous growth in sales in the third quarter of 2001, with sales up over 14% as compared to the same quarter last year.
Likewise, the West region also experienced solid growth as compared to the third quarter last year, with home sales up
6.3% in the region. A review of the Northeast region shows that sales in the region grew at
10.4%. Finally, the Central region grew a solid 5% over the third quarter of 2000, whereas the North region was the only region to fall, declining 4.2%.
Sales
Southeast Wisconsin
Region Up 3.3% |
Increases in: |
Kenosha County +5.5%
Ozaukee County +7.9%
Walworth County +8.2%
Washington County +6.9%
Waukesha County +9.2% |
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Decreases in: |
Racine County -10.1%
Sheboygan County -1.2%
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South-central Wisconsin
Region Up 14% |
Increases in: |
Columbia County +7%
Dane County +10.4%
Rock County +9.4%
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Northeast Wisconsin
Region Up 10.4% |
Increase in: |
Brown County +3.7%
Fond du Lac County +9.5%
Outagamie County +17.1%
Waupaca County +11.9%
Winnebago County +1.5%
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Western Wisconsin
Region Up 6.3%
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Increases in |
Eau Claire County +11.4%
LaCrosse County +15.3%
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North Wisconsin
Region Down 4.2%
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Central Wisconsin
Region Up 5% |
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WRA President William Malkasian noted the impact of Wisconsin's low unemployment rates. "Wisconsin's unemployment rate has been consistently lower than the national average which helps explain the relative strength of our housing market. Although there are some local exceptions, unemployment rates in the state are typically at or below the 4% level."
The median housing price in Wisconsin also rose in the third quarter rose, increasing 7.9% to $128,600.
An analysis of median housing prices for the third quarter shows housing prices exceeding their third quarter 2000 levels in most areas. Prices in the Western region rose 9.3% to
$127,500. The North region also experienced growth in home sale prices with median housing values up 10.4%
(to $112,700) compared to the third quarter last year. The Southeast region experienced growth of nearly 6% to $135,700.
Median housing prices in the South Central region grew at a similar pace (5.7%) with housing prices climbing to $140,000.
The prices in the Northeast region were down slightly -0.6%. Finally, median prices in the Central region were down 2.2%, falling to $100,000.
Median Housing Price
| Southeast Wisconsin Region
+6% to $135,700 |
Increases in: |
Kenosha County +10.3% to
$130,000
Milwaukee County +6.2% to $112,000
Racine County +4% to $115,400
Sheboygan County +10.2% to $113,700
Walworth County +5% to $135,500
Washington County +6.6% to $154,500
Waukesha County +5.9% to $192,700 |
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Decreases In: |
Ozaukee County -5% to
$190,000
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| South-central Wisconsin
Region +5.7% to $140,000 |
Increases in: |
Columbia County +14.7% to
$126,200
Dane County +6.8% to $161,300
Rock County +5% to $102,200
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| Northeast Wisconsin Region
-0.6% to $110,700 |
Increases In: |
Brown County +2.1% to
$124,400
Waupaca County +10.1% to $95,000
Winnebago County +1% to $99,000 |
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Decreases in: |
Fond du Lac County -1.6% to $97,200
Outagamie County -6.4% to $108,400
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Western Wisconsin
Region +9.3% to $127,500 |
Increases in: |
Eau Claire County +6.6% to
$117,100
St Croix County +13.6% to $162,700 |
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Decreases in: |
La Crosse County -1% to
$105,300
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North Wisconsin
Region + 10.4% to $112,700
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Central Wisconsin
Region -2.2% to $100,000 |
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The strong third quarter numbers reflect housing sales in July, August and September and thus do not reflect potential market changes following the terrorist's attacks of September 11. "We don't know the impact September 11 will have on Wisconsin's housing markets in the fourth quarter," said WRA President Malkasian. He added, "Consumer confidence has been shaken in some other parts of the economy but much of that involves discretionary consumer spending. Housing expenditures cannot be easily postponed and with mortgage rates at a 40 year low, we're hopeful consumers will stay in the market and take advantage of the solid market conditions."
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.
*Note: Sales estimates for the state are provided by the National Association of
REALTORS® which seasonally adjusts quarterly sales figures.
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Printable PDF of November 2001 Press Release