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Wisconsin Sets Another First Quarter Record In Home Sales
Date: May 16, 2006
For More Information Contact: David E. Clark, Economist
C3 Statistical Solutions Inc.
Office phone: 414-803-6537
Madison - Housing sales in Wisconsin showed no signs of
slowing down, setting yet another first quarter record and
outpacing the Midwest region and the nation as a whole,
according to the latest analysis by the Wisconsin REALTORS®
Association (WRA). The REALTORS® said sales of existing homes in
Wisconsin increased 3.5 percent over the first quarter of 2005,
with a total of 30,525 units sold during the first three months
of this year. This growth was certainly better than the Midwest
region, which grew at 1.1 percent, and it was well above the
nation, which saw home sales fall 2.1 percent during the first
quarter of 2006 as compared to the same period last year.
"This was a very good quarter for home sales in Wisconsin,
especially given that we are growing off of record levels of
home sales," said WRA Chairman Jeff Kitchen. "Although the
quarter started slowly, it picked up steam throughout February
and March and finished by setting a record." According to
Kitchen, "A robust economy combined with mortgage rates that
remain relatively low by historical standards continues to fuel
this remarkable market." Wisconsin has gained population and
added more than 30,000 jobs in the first quarter of this year as
compared to the first quarter of 2005, dropping the statewide
unemployment rate to 4.7 percent in March. "These economic
indicators imply that the economy will continue to support a
strong housing market in Wisconsin for the foreseeable future,"
noted Kitchen.
Fourth Quarter Regional Sales Data
Comparing the first quarter of 2006 with the same quarter
last year, existing home sales were in positive territory in all
regions of the state, with the strongest growth in the Central,
North and South Central regions of the state. Specifically, home
sales grew 13.5 percent in the Central region; they were up 8
percent in the South Central region; and they increased 7.3
percent in the Northern region. The Northeast region advanced
3.3 percent, whereas the Southeast and the Western regions grew
more moderately, in the 1percent to 2 percent range. It is
important to note that this growth is on top of the record home
sales established in the first quarter of 2005.
The strongest growth in sales volume was in the Central
region, where existing home sales increased 13.5 percent during
the first quarter of 2006 as compared to that quarter in 2005.
Adams County more than doubled its sales volume, but on volume
of just 11 units in Q1 2006. However, the largest county in the
region also grew at a very strong pace. Specifically, Marathon
County experienced an increase of 21.5 percent over the period.
Also increasing substantially were Portage County (17.3 percent)
and Waushara County (11.8 percent), both on solid volume. Wood
County was off its Q1 2005 pace by 3.5 percent and Clark County
dropped 5 percent. Note that collectively, this reduction only
accounted for six fewer home sales in the first quarter of 2006
as compared to the first quarter of 2005.
The South Central Region also experienced very solid growth
in sales with volume up 8 percent in the first quarter of this
year over that same period last year. Growth in two of the
counties was in the double-digits with Columbia County up 20.3
percent, and the more urban Rock County increasing 15.6 percent
over the levels of Q1 2005. Also strong were Sauk County (+8.3
percent), Dodge County (+6.8 percent) and the largest county in
the region, Dane County (+6.1 percent). Only two counties saw
their volumes slip, and only slightly. Green County fell 1.3
percent and Jefferson County dropped 1.8 percent from the levels
established in the first quarter of last year.
The Northern region, which has been red-hot over the last
year, turned in a solid first quarter of 2006 with existing home
sales increasing 7.3 percent over the same quarter in 2005. The
strongest growth was in Iron County, which increased 146.2
percent on initial volume of 13 units in 2005, and Langlade
County, which was up 59.5 percent on more substantial volume.
Also strong were Taylor County, which grew at 37.5 percent,
Price County, which advanced 23.9 percent, and Forest County,
which increased 20 percent. Numerous other counties experienced
double-digit growth including Ashland and Bayfield counties,
which are combined for reporting purposes (+18.4 percent),
Douglas County (+16.7 percent), Polk County (+16.5 percent) and
Washburn County (+15.8 percent). Other solid performers were
Barron County, which increased 8.5 percent, Lincoln County,
which grew 7.3 percent, and Burnett County, which rose 7.1
percent. Four counties were off their 2005 pace. These included
Vilas County, which fell 8.4 percent, Rusk County, which
declined 11.5 percent, Sawyer County, which dropped 16.3 percent
and Oneida County, which slid 16.7 percent compared to the
levels established in Q1 2005.
The Northeast region grew by 3.3 percent during the first
quarter of 2006, although there was wide disparity among the
various counties in the region with about half of the counties
increasing their sales volume and the others declining. The
strongest growth was seen in Marinette County, which increased
31.1 percent over the period. Also experiencing double-digit
growth in sales volume were Oconto County, which grew at 27.4
percent, followed by Manitowoc County, which increased 16.5
percent, and Door County, which saw sales grow at 15.6 percent.
Also robust were the counties of Outagamie (+7.9 percent) and
Brown (+7.6 percent), followed by Winnebago County (+4.8
percent). Among the counties which experienced sales reductions
were Waupaca County, which was off its 2005 Q1 pace by 4.5
percent, Kewaunee County, which sold one fewer unit (-6.7
percent), Shawano County which dropped 8.6 percent, and Calumet
County which fell 11.1 percent. More substantial reductions were
seen in Green Lake County (-26.7 percent) and Fond du Lac County
(-30.9 percent), both of which had sizeable sales volume in
2005. The largest reduction was in Menomonee County (-71.4
percent), but this represented a reduction from seven to two
units over the period.
The Southeast region experienced increased sales of 1.9
percent in Q1 2006 as compared to Q1 2005. Sheboygan County saw
its sales grow the fastest over the period with existing home
sales up 9.1 percent, followed by the two most populous counties
in the region, Waukesha County (+5.8 percent) and Milwaukee
County (4.3 percent). Also up was Racine County (+2.5 percent).
Washington County was essentially flat over the period (-0.3
percent) and Kenosha County was down just 1.1 percent. However,
Walworth County fell 12 percent, and sales in Ozaukee County
slid by 14.4 percent in Q1 2006 as compared to Q1 2005.
Finally, the Western region grew at 1 percent in the first
quarter of 2006 as compared to that quarter in 2005. Eau Claire
County grew at a solid 9.4 percent, as did both Chippewa County
(+6.9 percent) and La Crosse County (+5 percent). Note that all
three of these counties have home sales in the triple digits in
both years. However, two of the counties on the Wisconsin side
of the Minneapolis-St. Paul metropolitan area fell off their
2005 pace. St. Croix County dropped 5.5 percent and Pierce
County fell 5.8 percent. Both of these counties have seen sales
rise rapidly over the last five years. Falling more rapidly were
Dunn County (-9.9 percent) and the counties of Buffalo, Pepin
and Trempeleau (-9.1 percent), which report their sales
collectively.
First Quarter Median Housing Price Data
Home prices in the first quarter rose at about the rate of
inflation, according to the REALTORS®' report, with median home
prices increasing 3.6 percent to $158,200. Across the state,
median prices increased in five of the six regions and were down
only slightly in one region. "The median price growth has
moderated from the 6 percent to 8 percent range seen in recent
quarters and that's a healthy sign that housing remains
affordable in Wisconsin," said WRA President William Malkasian.
"With 30 year conventional mortgage rates rising by almost a
full percentage point since June of last year, it is not
surprising that housing prices are growing at a more modest
pace," he noted. Malkasian added that the strength in the state
economy should continue to support growth in home prices that
keeps pace with inflation.
The Central region, which experienced the strongest growth in
sales volume, also saw its median prices appreciate the fastest,
rising 5.1 percent to $115,600 in the first quarter of 2006 as
compared to the same quarter last year. Within the region, the
most rapid increase in median prices was found in Waushara
County, where median prices rose 11.4 percent to $96,000. Almost
as fast was Marathon County, the most urban county in the
region, where the home at the 50th percentile rose 9.7 percent
to $130,000 over the level established in the first quarter of
last year. Note that both of these counties saw home sales
volume grow by double-digits over the period, suggesting that
strong competition for homes in those areas may be fueling the
price increases. A similar pattern was found in Portage County
where home sales were up 17.3 percent although median home
prices increased more moderately (3.3 percent to $126,700).
Weaker sales volume in Wood County may have contributed to the 3
percent reduction in the median price to $86,200 and prices slid
more substantially (-15.4 percent to $71,900) in Clark County.
Another region that experienced a strong increase in sales
volume as well as an above average increase in its median price
was the South Central region, where the sales volume was up 8
percent and median prices rose 4.8 percent to $178,200 in the
first quarter of 2006. Indeed, this puts the South Central
region's median price $20,000 above the statewide average.
Within the region, all counties for which data are reported
experienced an increase in median prices. The strongest growth
in the median sales price was found in Dodge County, where
prices rose 19.5 percent to $134,700, followed by Green County,
which increased 9.2 percent to $137,500, and Dane County, which
increased 7.3 percent to $214,600. Also strong were Sauk County
(+6.7 percent to $160,000), Jefferson County (+6.6 percent to
$162,000) and Rock County (+6.3 percent to $120,000). Finally,
Columbia County increased 2.3 percent to $160,000 over the
period Q1 2005 to Q1 2006.
Median price appreciation in the Northern region was 4.5
percent to $115,000 between the first quarter of 2005 and the
first quarter of 2006. Given that counties in this region
include primary homes as well as large numbers of retirement and
vacation properties, a change in the mix of homes that sold in
any given quarter can dramatically alter the median prices,
either upward or downward. Such was the case this quarter as
several counties experienced a rapid increase in median prices,
whereas others fell sharply. The largest growth in prices was
found in Lincoln County where the median price rose 39.5 percent
to $120,000. Also strong were Washburn County where prices
increased 29.6 percent to $194,300, and also Rusk County where
the median price rose 21.1 percent to $87,800. Median sales
prices in Langlade County rose 15.2 percent to $69,100 even as
the volume rose nearly 60 percent, and they increased 12.5
percent to $90,000 in Forest County on modest volume. One of the
larger counties in the region is Barron County, which saw its
prices grow 11.4 percent to $120,000; they were up 6.6 percent
to $178,600 in Sawyer County, and they rose 5.9 percent to
$90,000 in Iron County on a strong increase in volume. Finally,
median prices in the combined Ashland and Bayfield counties rose
1.4 percent to $120,000 over the period. Numerous counties
experienced a modest decline in median prices. These included
Vilas County where median prices fell 1.1 percent to $112,000
and Burnett County where prices dropped 4.3 percent to $134,000.
More substantial reductions were seen in Oneida County (-8.8
percent to $103,300), Douglas County (-12 percent to $100,000),
Polk County (-12.5 percent to $135,700) and Price County (-23.4
percent to $56,000). Interestingly, sales volume was up nearly
24 percent in Price County suggesting that there was heavy
demand for the homes in the lower price brackets in that county.
Median prices for the Southeastern region were up 4.4 percent
to $172,700 for the first quarter of 2006 as compared to that
same quarter in 2005. Indeed, all counties in the region
experienced growth in their median prices. The strongest growth
was seen in Waukesha County where prices increased 9.1 percent
to $256,200, which puts Waukesha at the top of the state in
terms of the sale price of median priced homes. Kenosha County
home prices rose 6.4 percent to $162,700 and similarly, they
rose 6.2 percent to $153,300 in Milwaukee County. Racine County
experienced an increase in median home prices of 5.5 percent to
$147,700 over the period; they grew at 4.8 percent to $182,200
in Walworth County and they rose 3.5 percent to $202,500 in
Washington County. Finally, the median price appreciation was
2.4 percent to $233,300 in Ozaukee County, and it was basically
flat (+0.4 percent to $126,700) in Sheboygan County.
Median prices in the Northeastern region rose 1.6 percent to
$132,900 between Q1 2005 and Q1 2006. The strongest appreciation
in median prices took place in Green Lake County, where prices
increased 25.3 percent to $116,900. Interestingly, the sales
volume fell by more than 25 percent in the county suggesting
that higher prices may have softened home sales over the period.
Door County was also strong, with median prices rising 15.2
percent to $238,500 on a solid increase in home sales in the
county. Also strong was Shawano County, where median home prices
rose 13 percent to $103,100 although volume slipped nearly 9
percent as a result. Most other counties experienced more
moderate changes in median home prices. These include Fond du
Lac County, which increased 4.1 percent to $110,000; Winnebago
County where median prices rose 3.3 percent to $124,000; Brown
County, which grew at 1 percent to $150,800; and Outagamie
County where the same 1 percent increase brought the median
price in the first quarter of 2006 to $140,000. Median prices
were nearly unchanged in the counties of Calumet (-0.4 percent
to $155,000), Waupaca (-0.5 percent to $112,700) and Marinette
(-0.7 percent to $71,700). Modest reductions in median prices
were seen in Manitowoc County (-6.5 percent to $88,200) and
Oconto County (-7.8 percent to $106,000) even as home sales
increased by double digits in both of those counties. Finally,
much more substantial reductions in median prices were found in
Kewaunee County, where they slid 35 percent to $80,000. This is
likely a result of a change in the mix of lower cost homes that
sold in 2006 as compared to 2005, rather than severe discounting
on homes of similar characteristics over the period.
Finally, the only region to show a reduction in its median
price was the Western region where the median price fell 1.1
percent to $150,000, and this was primarily due to a moderate
reduction in prices in one of the larger counties in the region.
Most other counties experienced modest growth in prices over the
period. The strongest appreciation of median prices over the Q1
2005 to Q1 2006 period was the combined Buffalo, Pepin and
Trempeleau counties where prices rose 19.2 percent to $126,000.
Solid increases were seen in Chippewa County, which rose 6.7
percent to $128,000 even as volume rose nearly 7 percent.
Likewise, Pierce County was up 4.8 percent to $187,400; Eau
Claire County increased 4 percent to $130,700 on an increase in
volume of more than 9 percent; and Dunn County rose 3.4 percent
to $143,600 although its volume dropped nearly 10 percent over
the period. La Crosse County was up slightly (+0.8 percent to
$134,400) but median prices in St. Croix County fell 4.2 percent
to $196,000 in the first quarter of 2006 as compared to that
quarter in 2005.
The Wisconsin REALTORS® Association is one of the largest
trade associations in the state, representing over 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 Wisconsin REALTORS® Association and are not
seasonally adjusted. Median prices are only computed if the
county recorded at least 10 home sales in the quarter. Finally,
several counties in the Western and Northern regions were
re-benchmarked by their data vendors in 2006 and thus Q1 2005
figures were also revised so as to be comparable with the most
recent quarter.
Q1 comparison from 2005 and 2006 Spreadsheet
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