Wisconsin Home Sales Remain Strong in the First Quarter 2002

For More Information Contact: David E. Clark, Economist C3 Statistical Solutions Inc.
Office phone: 262-549-4992
Cell phone: 414-803-6537

Madison - Wisconsin's housing market turned in another stellar performance with home sales up 10% in the first quarter of 2002 compared to last year, according to the latest housing statistics released by the National Association of REALTORS® (NAR). Wisconsin's seasonally adjusted total for the quarter was 29,550 homes sold. State home sales grew at nearly the same rate as the Midwest region, which was up 10.7%, and slightly higher than the nation which increased 9.3% over the same period last year.

"Home sales benefited from the twin advantages of low mortgage rates - in the 7% range - combined with a relatively mild winter and spring," said Matthew Miller, Chairman of the Board for the Wisconsin REALTORS® Association (WRA). "The strength of this housing market in the first quarter is particularly remarkable in light of moderating labor market conditions," added Miller. "Housing continues to lead the economy and this recovery."

Miller said economic indicators continue to show the national economy emerging from the relatively short-lived recession that began in March 2001. While the Wisconsin economy softened slightly in the first quarter of 2002, it has remained generally stronger than the national economy during this recession. The statewide unemployment rate of 5.7% in March matched the national rate but was an improvement over February when the jobless rate peaked at 5.8%. Moreover, March unemployment figures improved in more than 70% of the counties in Wisconsin. 

According to the WRA analysis of Multiple Listing Service (MLS) data, first quarter (Q1) sales were up in all areas of the state when compared to one year ago. Both the North and the West regions were up the most, about 15% over Q1 2001. The North East region recorded a solid 11.6% growth rate in Q1 2002 as compared to the same quarter last year. Healthy growth was also experienced in the South East and South Central regions of the state. The South East region was up 11% over Q1 2001. The South Central region grew 10.7%, with very robust growth in the more rural counties. Finally, the Central region saw housing sales grow by 7% over last year. 

"The housing market remains incredibly strong, especially compared to many other sectors of the state and national economies," said William Malkasian, President of the Wisconsin REALTORS® Association. He added, "Although mortgage rates have probably bottomed out, we don't expect the Fed to significantly increase rates over the next three to four months. As a result, we remain very confident of a strong summer and fall housing market in Wisconsin." 

Sales

Median housing prices in Wisconsin also rose in Q1 2002 as compared to Q1 2001, increasing 3.9% to $127,700. Prices across the state were at least even with last year, with most areas exceeding first quarter 2001 levels by 3%-5%.

"While an increase in home prices can have a limiting effect on some families, it has yet to hurt overall sales significantly," said WRA President Malkasian. "An adequate supply of housing at all price ranges will keep this market healthy and affordable." 

Median prices in the North region grew nearly 13% to $111,100 over the same quarter last year, with many of the very small counties showing substantially price increases. The South Central region grew by 5% to $141,400. The South East region experienced median price increases of 4.4% to $132,300 in Q1 2002 as compared to a year ago. The Central region saw its median price grow 3.4% to $100,000, although the experiences of individual counties varied. Similarly, median housing prices rose 3.3% in the North East region, to $112,900. It is important to note that prices tend to be more volatile in Door county and this decline may result in part from greater housing activity in the non-coastal areas of the county. Finally, median home sale prices were virtually unchanged as compared to Q1 2001 in the West, rising just 0.2% to $121,400. 

Median Housing Price

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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