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Wisconsin Housing Market Maintains Record Page
State housing market outpaces the nation and the
Midwest region
Date: August 16, 2005
For More Information Contact: David E. Clark, Economist
C3 Statistical Solutions Inc.
Office phone: 262-549-4992
Cell phone: 414-803-6537
Madison – Residential housing sales in Wisconsin set a
second quarter record of 30,750 homes according to the most
recent analysis by the Wisconsin REALTORSÒ Association (WRA).
Statewide, home sales increased 5.4 percent over the second
quarter of 2004, growing faster than the nation and the Midwest
region. Nationally, home sales were up by 4.6 percent for the
quarter, and the Midwest region saw home sales rise 1.6 percent
as compared to the second quarter of 2005.
“The housing market in the state remains extremely robust,
especially in the Northern part of the state, with brisk home
sales in the lower price ranges,” said WRA Chairman Kitty
Jedwabny. “As long as the fundamental drivers of housing demand
remain favorable, we anticipate these solid home sales to
continue,” she noted. “While mortgage rates have inched up
slightly in the last few weeks, we have not seen any significant
upward momentum. In fact, during the second quarter, the 30-year
fixed rate mortgage averaged just 5.7 percent for the quarter,”
she added. “The job market was also in decent shape, with an
unemployment rate averaging 4.6 percent in the first quarter,”
said Jedwabny, noting that this was about one-half percent
better than the national rate.
Second Quarter Regional Sales Data
Sales figures for the second quarter were up in five of the
six regions of the state, based on Multiple Listing Service
(MLS) data for Wisconsin counties. By far, the fastest growth in
the state was in the Northern region, where sales volume
increased an incredible 30.2 percent over the second quarter in
2004. Also experiencing double-digit growth was the South
Central region, which grew 12.9 percent over the period,
followed by solid growth in the Southeast (+5.7 percent) and the
Central (+4.6 percent) regions of the state. More moderate
growth was seen in the West region, where sales increased 1.9
percent, and the Northeast region experienced a modest reduction
in existing home sales (-4.6 percent) from the high levels set
in the second quarter of 2004.
The Northern region, which experienced very strong sales during
the first quarter of 2005, continued that trend during the
second quarter as well. Specifically, home sales in Q2 2005 were
up 30.2 percent over Q2 of 2004. The strongest county in the
region was Vilas County, where sales increased an incredible
73.5 percent, followed closely by Oneida County (+64.2 percent),
Langlade County (+63.8 percent) and Florence County (+50
percent), although the latter was based on single-digit sales
volume. Also strong was Price County, which experienced growth
of 48.9 percent, followed by Forest County (+38.5 percent).
Numerous counties also saw existing home sales increasing in
excess of 20 percent. These included Taylor County (+28.6
percent), Lincoln County (+27.3 percent), Washburn County (+22.8
percent), Polk County (+22.1 percent) and Burnett County (+21.4
percent). Sawyer County grew at a healthy 14.1 percent in the
second quarter of 2005 compared to that quarter last year.
However, there were a handful of counties that experienced some
decline in sales volume, although collectively sales were only
down by 21 units in these counties. Specifically, sales fell off
2.3 percent in Barron County; they declined 6.7 percent in
Douglas County; and they dropped 10 percent in Ashland and
Bayfield counties, which are combined for reporting purposes.
Finally, sales declined 15.8 percent in Rusk County.
The South Central region of the state was also quite strong,
recording an increase in sales volume of 12.9 percent when
comparing Q2 2005 with Q2 2004. All counties that reported sales
volume showed growth over the period, with Sauk County up 55.4
percent. Several other counties saw sales volume spike more than
10 percent. These included Jefferson County (+17.8 percent),
Green County (+17.1 percent), Columbia County (+16.3 percent)
and Dane County (+12.5 percent). More modest growth was found in
Dodge County, which advanced 4.8 percent and also in Rock
County, where home sales were up 3.6 percent.
Existing home sales in the Southeast region of the state were up
a solid 5.7 percent in Q2 2005 as compared to the same quarter
last year. Sales were most robust in Waukesha County (+9.4
percent), Racine County (+8.2 percent) and Milwaukee County
(+7.0 percent). Washington County saw home sales grow by 5
percent over the period, and they were up more moderately in
Ozaukee (+2.8 percent) and Sheboygan (+2.1 percent) counties.
The volume of home sales was flat in Walworth County (+0.7
percent), and they fell slightly (-2.1 percent) in Kenosha
County over the period.
The Central region of the state was up 4.6 percent in the second
quarter of this year as compared to the same quarter last year.
Clark County saw its sales rise 82.4 percent, although sales in
the second quarter of this year were modest at 31 units sold.
Waushara County was up 13.4 percent on stronger sales volume,
and Adams County added two units to increase its sales volume by
9.5 percent. More significantly, the largest county in the
region, Marathon County, grew by 8.9 percent. Portage County was
essentially flat (-1.9 percent) when compared to the high
volumes established last year. However, sales fell more
substantially in one of the other large counties. Specifically,
home sales dropped 7.2 percent in Wood County over the period.
The Western region of the state was up 1.9 percent in the second
quarter of 2005 as compared to the same period last year.
Buffalo, Pepin and Trempeleau counties, which are combined for
reporting purposes, saw home sales rise 25 percent on solid
volume, and Chippewa County was also up 7.1 percent over the
period. Other counties were either up slightly, flat, or down
slightly. Specifically, existing home sales in St. Croix County
grew 2.3 percent and they were up 1.5 percent in La Crosse
County. Home sales rose 0.8 percent in Dunn County, and they
were unchanged in Eau Claire County. Finally, sales in Pierce
County declined by 7.5 percent, although this was only a 10-unit
decline over the quarter.
The only region to see a reduction in sales volume during the
second quarter of 2005, as compared to the same quarter last
year, was the Northeast region, where existing home sales fell
4.6 percent. Within the region, the performance was mixed. For
example, Menominee County more than doubled its sales, although
the Q2 2004 sales volume was only six units. However, Manitowoc
County grew 20.2 percent on relatively strong sales volume. Also
solid was Waupaca County (+8.1 percent) and Door County (+4.1
percent). Both Brown and Shawano counties were unchanged from
last year, and a number of counties experienced a reduction in
their sales volume. Specifically, Kewaunee County fell 2.6
percent; Oconto County saw home sales drop 4.3 percent; sales
dropped 6.1 percent in Fond du Lac County; they declined 7.3
percent in Green Lake County; they fell 7.6 percent in Winnebago
County; and they dropped 10.2 percent in Outagamie County. More
substantial reductions in sales volume were seen in Calumet
County (-31.7 percent) and also in Marinette County (-31.9
percent), both on solid sales volume in Q2 2004.
Second Quarter Median Housing Price Data
Home prices in the second quarter of the year also
experienced growth according to WRA sales figures. As compared
to Q2 2004, median home prices were up 6.7 percent to $161,800,
although this moderated from the 9.7 percent median price
appreciation recorded in the first quarter of this year. Five of
the six regions saw their median prices grow over the period.
Median prices in the Northern region fell significantly, and
this is almost certainly due to the popularity of second homes
that are not waterfront properties.
“While home price appreciation was solid, there is little
evidence of the types of real estate bubbles that can occur in
other parts of the country, namely in the cities in northeastern
and western states in the country,” said WRA President William
Malkasian. “In fact, a comparison of our income growth over the
past 20 years to the appreciation of housing of consistent
quality over that same period reveals that income actually grew
at a slightly faster pace than housing prices over that period,”
he noted. “Although we have a healthy construction market, there
is little speculative building taking place, and hence there
remains a good balance between growing demand and growing supply
of housing in the state,” said Malkasian.
Median housing prices rose in five of the six regions of the
state when comparing Q1 2005 with the same quarter last year.
Median home price appreciation was up 8.9 percent in the
Southeast region and it rose 7.4 percent in the Central region
of the state. Also solid was the South Central region (+5.7
percent). Modest increases were seen in the Northeast region
(+2.3 percent), whereas prices were up slightly less than one
percent in the Western region. Median prices were down somewhat
substantially (-8.1 percent) in the Northern region.
The Southeast region saw median home prices rise 8.9 percent to
$176,400 in the second quarter of 2005 over that same quarter in
2004. Within the region, nearly all areas experienced median
home price appreciation, with several counties in the double
digits. These include Walworth County (+14.2 percent to
$184,400), Kenosha County (+13.3 percent to $168,300), and
Milwaukee County (+10.5 percent to $154,700). Solid median price
growth was also seen in Waukesha County, where median prices
increased 7.7 percent to $252,800, the highest level in the
state. Prices in both Milwaukee County and Waukesha County rose
over the period, even as sales volume increased substantially,
suggesting that strong demand conditions are contributing to the
price pressures in those counties. Prices rose 5.4 percent to
$146,200 in Racine County, and they were up 4.2 percent to
$200,000 in Washington County. Prices in Sheboygan County
increased 2.5 percent to $129,400, whereas they were down
slightly in Ozaukee County (-1.9 percent to $236,100).
Median sale prices in the Central region of the state grew 7.4
percent to $120,000 in Q2 2005 as compared to Q2 2004. Median
prices were up by solid margins in the larger counties in the
region. Specifically, prices rose 10.2 percent to $93,700 in
Wood County; they increased 7.2 percent to $128,600 in Waushara
County; median prices appreciated 5.4 percent to $127,700 in
Marathon County, which is the largest county in the region; and
they rose 2.7 percent to $127,800 in Portage County. The only
two counties to record median price reductions were Adams County
(-5.1 percent to $135,600) and Clark County (-7.7 percent to
$68,000).
The South Central region experienced an increase in median
prices of 5.7 percent to $176,700 during the second quarter of
2005 over the same quarter last year. Leading the growth in home
prices was Jefferson County, which increased 11.4 percent to
$161,500. It should be noted that consistent with earlier
quarters, median prices and sales volume were up by double
digits in Jefferson County, suggesting that very strong demand
conditions continue to exist. Median prices rose 7.5 percent to
$135,700 in Green County as sales volume increased 17.1 percent.
Likewise, Dane County saw median prices increase 5.9 percent to
$204,200 even as volume increased 12.5 percent, and prices in
Sauk County rose 4.3 percent to $152,500 while sales volume
increased 55.4 percent over the Q2 2004 to Q2 2005 period. A
similar, although less dramatic, pattern of increased prices
combined with moderate increases in sales volume existed in a
number of other counties. For example, median prices rose by
10.7 percent to $127,800 in Rock County and they were up 8.7
percent to $133,000 in Dodge County. The only county to
experience a reduction in the median price was Columbia County,
where home prices fell slightly (-4.1 percent to $152,000)
although this discounting seems to have stimulated sales volume,
which grew 16.3 percent over the period.
Median home prices rose a modest 2.3 percent to $133,800 in the
Northeast region of the state over the Q2 2004 to Q2 2005
period. The largest price appreciation was in Marinette County,
where prices increased 9 percent to $83,300. Note that this
county saw significantly fewer sales in Q2 2005 as compared to
the same quarter last year, which suggests that the higher
prices may have dampened demand in the county. Median prices
were up 5.7 percent to $151,700 in Brown County, the largest
county in the region, whereas they rose 4.1 percent to $165,300
in Calumet County. Two other large counties also saw their
prices grow at modest rates.
Specifically, prices rose 2.3 percent to $138,500 in Outagamie
County, and they rose 2 percent to $128,000 in Winnebago County.
Both of these counties experienced modest reductions in sales
volume. Median home prices in Manitowoc County were up 3.2
percent to $94,300 even as sales volume rose significantly
(+20.2 percent), suggesting strong demand conditions. Also up
slightly were Fond du Lac County (+1.7 percent to $116,200) and
Green Lake County (+1.5 percent to $121,800). Several counties
were essentially flat, with Kewaunee County up 0.2 percent to
$96,400, Door County unchanged at $180,000 and Shawano County
down slightly (-1.8 percent to $103,600). Finally, two counties
experienced more pronounced median price reductions. They were
Waupaca County, which fell 3.4 percent to $114,500 and Oconto
County, which declined 5.3 percent to $108,900.
The Western region of the state experienced a slight increase in
median prices (+0.9 percent to $150,000) over the Q2 2004 to Q2
2005 period. Within the region, Buffalo, Pepin and Trempeleau
counties, which are combined for reporting purposes, saw their
median prices increase 10 percent to $110,000 even as sales
volume increased 25 percent. Again, this suggests that very
strong demand conditions are driving the higher prices. Several
counties experienced modest median price appreciation. These
include St. Croix County, where median prices rose 4.5 percent
to $195,700; La Crosse County, where prices increased 3.8
percent to $137,900; Eau Claire County, which experienced median
price growth of 3.5 percent to $132,200; and Chippewa County,
where median prices appreciated by 2.1 percent to $121,200.
Pierce County experienced very slight increases in median prices
(+0.7 percent to $180,000) and median prices fell moderately in
Dunn County (-4.5 percent to $144,300).
Finally, median home prices fell 8.1 percent to $125,000 in the
Northern region of the state during the second quarter of 2005
as compared to that same quarter in the previous year. While it
is possible that there is some discounting taking place within
the region, it is likely that more of the homes that sold in Q2
2005 are either smaller or in less desirable locations (e.g.,
fewer waterfront properties) than those that sold during the Q2
2004 period. This is not an indication of a price bubble, since
sales volume was up substantially (+30.2 percent) in the region
over the period. Within the region there was considerable
volatility, with some counties experiencing growth in prices and
others seeing substantial price reductions. For example, median
prices in Burnett County were up 29.3 percent to $157,800 even
as sales volume increased 21.4 percent over the same period.
Similarly, median prices in Lincoln County rose 21.7 percent to
$120,000, again with strong increases in sales volume (+27.3
percent). This suggests relatively strong demand for housing in
these counties. In contrast, although prices rose 12.2 percent
to $160,000 in Douglas County, this accompanied a slight
reduction in sales volume. Median prices in Polk County were up
4 percent to $158,700, again on solid sales volume increases,
whereas they rose 2.6 percent to $80,000 in Rusk County, but
sales volume fell nearly 16 percent in that county. A number of
counties experienced very modest changes in median prices
including the combined Ashland/Bayfield counties (+1.8 percent
to $112,000), Washburn County (0.4 percent to $162,200), and
Barron County (+0.3 percent to $118,300). Two counties saw
moderate reductions in median prices. Specifically, median
prices fell 3.4 percent to $160,000 in Sawyer County, and they
dropped 5.9 percent to $66,700 in Langlade County. However, the
median price reductions were substantial in several counties.
While the largest reduction (-78.8 percent to $40,000) was seen
in Forest County, which had less than 20 sales in both Q2 2004
and Q2 2005, there were two counties with double-digit
reductions in median prices that had sales volume in excess of
200 units in Q2 2004. These were Oneida County, where median
prices fell 21.4 percent to $117,100 even as sales volume
increased 64.2 percent, and Vilas County, where median prices
slid 32.5 percent to $120,000 as home sales rose 73.5 percent.
Finally, median prices fell on modest volume in Price County
(-27.9 percent to $75,000) and also in Taylor County (-42.3
percent to $65,000). The volume of home sales was up
substantially in both of these counties.
The Wisconsin REALTORS® Association (WRA) is one of the
largest trade associations in the state, representing more than
17,000 real estate brokers, sales people and affiliates
statewide. Sales estimates for the state are provided by the
National Association of REALTORS® which seasonally adjusts
quarterly sales figures. All County figures on sales volume and
median prices are compiled by the WRA and are not seasonally
adjusted. Median prices are only computed if the County recorded
at least 10 home sales in the quarter.
Q2 comparison from 2004 and 2005 Spreadsheet
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