State Housing Market Outperforms Region and Nation in Second 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 solid quarter, outperforming both the Midwest region and the nation in the second quarter with home sales 5.6% above last year, according to statistics released by the Wisconsin REALTORS Association (WRA). Based on seasonally adjusted sales provided by the National Association of REALTORS (NAR), Wisconsin's seasonally adjusted total for the quarter was 26,875 homes sold. State home sales grew at more than twice that of the Midwest region, which grew 2.7% over the same period last year, and also beat the national sales growth, which was 4.4% compared to the second quarter last year. 

"The state's major economic indicators continue to show signs of a moderate recovery," said Matthew Miller, Chairman of the Board for the WRA. "Seasonally adjusted unemployment rates below 5% and extremely favorable interest rates below 7%, combined to fuel Wisconsin's housing market in the second quarter." 

According to Miller, the increase in sales is particularly impressive given the robust housing market of the last two years. "Although there are some signs of slight moderation in sales during the month of June in some areas, this remains a very solid housing market," said Miller.

Based on the WRA analysis of Multiple Listing Service (MLS) data for single- and multiple-family home sales, second quarter (Q2) sales were up in all areas of the state when compared to second quarter sales one year ago. Sales growth ranged from 4.4% in the South East region to 11% in the West. In the West region, Pierce county grew by 18.3% and Eau Claire county grew by 14.4%. St. Croix county was nearly unchanged from their Q2 2001 totals, La Crosse fell by 6.1% and Chippewa fell 12.4%.

Increased sales in the North were also strong, growing 10.5% in Q2 2002 as compared to Q2 2001. Reported home sales in Barron county grew by about 42.2%, and they grew by 30% in Lincoln county. Home sales in Polk county were up 2.5%. Sales however fell by 34.9% in Oneida county. 

The Northeast region grew by 9.8% overall. Three counties in the region experienced double digit growth, including Calumet (+17.9%), Brown (+11.4%) and Shawano (+11.2%). Outagamie county advanced 7.5% over Q2 2001 and Waupaca grew 6% over that period. Winnebago and Fond du Lac increased a modest 2%-3% and Door county was unchanged as compared to second quarter last year.

The Central region grew nearly as fast, increasing 8.1% with Marathon county increasing nearly 13%, and Portage and Wood counties growing 6.7% and 4.8% respectively in Q2 2002 as compared to the same quarter in 2001. Waushara county was off the Q2 2001 pace by 5.9%. Growth in other regions was more moderate.

Home sales in the South Central region increased 8.6% with Sauk (+17%) and Dane (+11.8%) experiencing the strongest growth. Both Rock and Columbia counties posted solid gains, growing 6.8% and 5.1% respectively. Two counties in the region were off their Q2 2001 pace (Jefferson was down 7.8% and Green was down 6.1%). Finally, the Southeast region grew at a modest 4.4% rate over the Q2 2001 levels. Walworth county grew at a robust 16.1% rate, and metropolitan Milwaukee increased 6.9%, with Ozaukee up 14.1%, and the remaining counties up more modestly (Milwaukee +6.4%; Washington +5.8% and Waukesha +6.6%). Sheboygan county also experienced positive growth (+4.3%). The only two counties in the region to experience a decline were Kenosha which was down 6.8% in Q2 2002, and Racine county, which fell 9%. 

"Although the Wisconsin economy has been improving, the corporate scandals that have shaken Wall Street may slow the pace of the recovery nationally and statewide" said William Malkasian, President of the WRA. He added, "The good news is we believe it is unlikely that the Fed will raise interest rates during the remainder of the year so we can expect mortgage rates to remain favorable." Malkasian predicts continued low mortgage rates, if accompanied by moderate growth in the economy, will keep Wisconsin housing markets attractive to both buyers and sellers.

Sales

Median housing prices in Wisconsin also rose in Q2 2002 as compared to Q2 2001, increasing 5.2% to $134,300. Although price increases were sizeable in one region (the North grew 10.5% to $116,000), this was the exception. "Although the North region has experienced strong price appreciation for the second straight quarter, we do not believe that housing market in the state is overheating," said WRA President Malkasian. "Indeed, the median home price appreciation rate in the other regions was in the 4% - $6% range, indicating that housing remains affordable to those at all levels of income."

Median prices in the North region increased 10.5% to $116,000. Oneida county (+16% to $132,000) experienced very solid growth, with more modest growth in other northern counties compared to Q2 2001. Polk county increased 4% to $136,000, Barron county increased +3.3% to $87,800, and Lincoln county increased 1.4% to $86,200.

Median housing prices rose 6.3% in the North East region, to $120,000. Most counties saw prices increase between 4% and 9%, with the strongest growth in two of the larger counties; Winnebago was up 9% to $113,700 and Outagamie up 7.1% to $122,900 as compared to Q2 2001. Door county reversed the decline recorded in the first quarter of the year by posting a 5.8% increase over Q2 2001, rising to $129,100. Brown county also experienced median price appreciation with an increase of 4% to $130,000 and Calumet rose 2.3% to $146,900. Among the three counties that experienced a modest reduction in median prices in the second quarter were Fond du Lac (-4.1% to $104,000), Waupaca (-2.4% to $92,700) and Shawano (-1.6% to $91,000).

The heavily populated Southeast and South Central corridors experienced median housing price growth of 5.6%-5.7%. In the Southeast region where prices rose to $141,800, the highest price appreciation was in the northern suburban counties of Milwaukee, (Ozaukee county rose 19.1% to $217,900, and Washington county increased 9.5% to $164,300. Waukesha county rose 6.9% to $198,300 and Milwaukee county increased 4.9% to $117,300. Price growth in the southern counties was more modest with Kenosha up 3.2% to $130,000 and Racine prices increasing 4.1% to $123,100. Walworth county increased 4% to $141,500. Finally, Sheboygan county prices grew 2.3% to $113,300. 

The South Central region experienced price increases of 4.8% to $146,700, with the most rapid growth experienced in Green county, where median prices increased 10.5% to $116,000. Other counties experienced more modest growth including Jefferson (+5.8% to $137,500), Dane (+5.3% to $166,200), Columbia (+4.6% to $131,100) and Sauk (+2.3% to $127,100). Rock was virtually unchanged at $103,500.

Median housing prices in the Central region for Q2 2002 as compared to Q2 2001 were up 4.3% to $101,700. Median prices in Marathon county increased 11% to $114,700, but were a more modest in Portage county (+5.3% to $111,800). Prices actually fell in Wood county (-2.1% to $79,200) and they declined more significantly in Waushara 
(-9.7% to $92,900). 

Finally, median prices rose just 1.8% in the Western region of the state to $125,700. Although St. Croix county experienced median sale price increases of 11.7% to $170,000, other counties experienced modest changes. Pierce advanced 5.5% to $166,700 and La Crosse increased 2.1% to $110,000. Chippewa fell 4% to $96,000 and median prices in Eau Claire county declined 4.9% to $109,400 in Q2 2002 as compared to the same quarter last year. 

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.

Wisconsin Housing Statistics Online

Printable Copy of this Press Release

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