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2001 A Strong Year For Wisconsin Home Sales Despite
Recession
Date: February 12, 2002
For More Information Contact: David E. Clark, Economist
C3 Statistical Solutions Inc.
Office phone: 262-549-4992
Cell phone: 414-803-6537
Madison - Despite the national recession and the negative impacts of September 11th on the rest of the economy, Wisconsin's housing market remained incredibly robust in the fourth quarter of 2001, with sales up nearly 10% above the previous year, according to the latest housing statistics released by the Wisconsin REALTORSŪ Association
(WRA).
Fourth quarter figures just released by the National Association of
REALTORSŪ( reveal that home sales in Wisconsin grew by 9.8% in the fourth quarter 2001 as compared to that same period in 2000. Consistently favorable interest rates, federal tax cuts and continued low unemployment rates in Wisconsin were the key factors to the strong housing performance according to the
REALTORSŪ.
"Many of the economic planets lined up in the fourth quarter," said Matthew Miller, Chairman of the Board for the WRA, who added, "we also can't dismiss the milder weather compared to the snowy December last year."
The seasonally adjusted total for the quarter was 23,075 homes sold. Annually, home sales totaled approximately 101,000 units, which is 7.2% higher than the total sales in 2000. In addition, Wisconsin continues to outperform both the nation and the region. Nationally, housing activity grew just 3.1% for the year, and 2.6% in the last quarter as compared to the final quarter in 2000. The Midwest expanded 3.8% for the year and grew a solid 6.7% in the final quarter of 2001.
REALTORŪ President Bill Malkasian observed the significance of the housing market's performance in light of September 11th. "Many parts of the economy were jolted by the terrorist attacks of September 11, including the real estate market. But housing rebounded almost immediately, perhaps because people sought the security and comfort of a home."
Malkasian also credits the Federal Reserve Board for cutting interest rates 11 times in 2001. "Conventional 30 year mortgage rates continue to hover around 7% and there have even been some minor declines in the past two weeks. This remains a very good time to buy a home," added Malkasian.
Malkasian said his group believes the recession is likely to wind down soon noting, "Consumer expectations appear to be improving and this is a leading indicator of economic recovery." According to Malkasian, the index of Consumer Confidence has improved for two straight months, with the expectations index also up in December.
Multiple Listing Service (MLS) data for Wisconsin counties reveals sales in most areas of the state are above fourth quarter (Q4) levels from one year ago.
The Northeast region grew at a blistering pace, rising 16.7% in Q4 2001 as compared to Q4 2000.
Healthy growth was also experienced in the South Central region of the state, with the region up over Q4 2000 by approximately 12%.
In the Southeast region of the state, fourth quarter home sales were up nearly 9% over the Q4 2000 figure.
The Central and North regions grew at 5.1% and 4.2% respectively as compared to Q4
2000 where the West region actually declined slightly (-1.3%).
Sales
Southeast Wisconsin
Region Up 9% |
Increases in: |
Kenosha County 1.5%
Milwaukee County 6.4%
Racine County +10.2%
Sheboygan County +13.3%
Washington County +15%
Waukesha County +24.6% |
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Decreases in: |
Ozaukee County -3.9%
Walworth County -7.3%
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South-central Wisconsin
Region Up 12% |
Increases in: |
Green County +41.9%
Columbia County 18%
Dane County 18% |
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Decreases in: |
Sauk County -11.9%
Rock County -14%
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Northeast Wisconsin
Region Up 16.7% |
Increases in: |
Brown County 17.6%
Fond du Lac County +20.7%
Outagamie County 2.9%
Waupaca County +1%
Winnebago County +24.3%
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North Wisconsin
Region Up 4.2%
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Increases in: |
Marathon County 4.4%
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Central Wisconsin
Region Up 5.1% |
Increases in: |
Portage County +21.9%
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Western Wisconsin
Region Down -1.3% |
Increases in: |
LaCrosse County + 3.4%
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Decreases in: |
Eau Claire County -3.6%
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The median housing price in Wisconsin also rose in Q4 2001 as compared to Q4 2000, increasing 8.6% to $128,600. An analysis of median housing prices for the fourth quarter shows housing prices exceeding their fourth quarter 2000 levels in all regions in the state.
Leading the growth was the Northern region which saw prices increase 19.4% to $116,700. (Note: Caution must be exercised in the interpretation of this relatively large percent increase since some counties reported activity in the Q4 2001, that did not report in Q4 2000 and vice versa. This can distort the comparison.)
Median prices in the West region grew nearly 9%, with most of the housing price growth taking place in smaller counties.
The most populous regions experienced growth in median housing prices in Q4 2001 as compared to Q4 2000, in a range of 5.6% to
6%. The South Central region grew at 6% and the Northeast region experienced median price appreciation of
5.9%. Prices in the Southeast region rose 5.6% to $132,900. Finally, median prices in Q4 2001 rose over their Q4 2000 values for the Central region by 4.3%.
Median Housing Price
| Southeast Wisconsin Region
+5.6% to $132,900 |
Increases in: |
Kenosha County +9.5% to
$126,300
Milwaukee County +9.7% to $112,900
Ozaukee County +2.1% to $183,300
Racine County +11.3% to $116,500
Walworth County +0.8% to $130,700
Waukesha County +4.9% to $187,300 |
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Decreases In: |
Sheboygan County -3.4% to $103,700
Washington County -1.8% to $155,300
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| South-central Wisconsin
Region +6% |
Increases in: |
Dane County +6.2% to $164,000
Green County +15.1% to $103,600
Rock County +4.8% to $98,300
Sauk County +4% to $124,400 |
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Decreases in: |
Columbia County -10.5% to
$114,800
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| Northeast Wisconsin Region 19.4% to
$116,700 |
Increases In: |
Brown County +12.2% to
$125,900
Fond du Lac County +7.1% to $100,000
Outagamie County 3.6% to $113,700 |
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Decreases in: |
Waupaca County -4.9% to $91,400
Winnebago County -3.3% to $103,100
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Western Wisconsin
Region +9% |
Increases in: |
Eau Claire County +2.7% to
$109,300
La Crosse County +4.7% to $102,200
St Croix County +5.3% to $162,400
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Central Wisconsin
Region +4.3% |
Increases in: |
Marathon County + 5.4% to $107,900
Portage County + 2.6% to $108,300
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North Wisconsin
Region + 10.4% to $112,700
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The Wisconsin REALTORSŪ 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 he state are provided by the National Association of
REALTORSŪ which seasonally adjusts quarterly sales figures.
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