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Wisconsin
Home Sales Dip in 2007 But Prices Stable
State's housing news much better
than nation
Date: February 14, 2008
For More Information Contact: David E. Clark, Economist
C3 Statistical Solutions Inc.
Office phone: 414-803-6537
Madison - Wisconsin housing sales
decreased but prices increased in 2007, leaving Wisconsin’s real
estate market in much better shape than many parts of the
Midwest and the nation, according to the year-end analysis of
existing home sales conducted by the Wisconsin REALTORS®
Association (WRA).
Wisconsin home sales declined in 2007 by 10.8 percent relative
to 2006, but median prices actually rose 0.2 percent over the
period to $164,000, according to the REALTORS®’ report. Sales in
the Midwest were also down by a similar margin, falling 10.5
percent over last year, but sales nationally were down nearly 13
percent.
“It’s a mistake to look at Wisconsin’s housing market through
the lens of national indicators,” said WRA President William
Malkasian. “Housing in our state and throughout much of the
Midwest is much less volatile than many markets in other parts
of the country, especially the Western United States,” said
Malkasian. “While 2007 was a rough year for housing sales
compared to our recent boom years, Wisconsin’s housing future
looks like it will be brighter, faster.”
Malkasian pointed to recent action by the Federal Reserve to
substantially cut short term interest rates as another positive
sign for the housing market. “Thirty-year fixed mortgage rates
averaged 6.3 percent for 2007, but fell to 5.8 percent in
January, and this was before the Fed’s latest interest rate
cuts,” said Malkasian. “These steps by the Fed will help to keep
housing affordable for credit worthy buyers, and offer excellent
buying opportunities in this market,” he said.
While sales fell in 2007, median prices in the state actually
rose slightly, showing the underlying strength of Wisconsin’s
housing market, according to the WRA report. “The stability of
prices in this soft market is a good sign for buyers,” said WRA
Chairman Michael Spranger. “The fact that we are not seeing the
significant changes in the median prices that have been recorded
in other parts of the country is an indication that housing
remains a good way to accumulate and maintain household wealth
for Wisconsin residents,” said Spranger.
According to Spranger, recent REALTOR® polling supports his
optimism for Wisconsin’s housing market in 2008. “Wisconsin
citizens love their homes, their neighborhoods and their state,”
said Spranger, “and we asked their opinions in the middle of
January!” According to the REALTORS®’ January survey, 83 percent
of Wisconsin citizens ranked their quality of life as good, 80
percent gave their neighborhoods the same ranking and 74 percent
said the same about their homes.
The Wisconsin REALTORS® Association is one of the largest trade
associations in the state, representing over 18,000 real estate
brokers, sales people and affiliates statewide. Sales estimates
for the states, broad national regions, and the U.S. are
provided by the National Association of REALTORS®, which
seasonally adjusts quarterly sales figures. All county and
regional sales figures and median prices within Wisconsin are
compiled by the Wisconsin REALTORS® Association and are not
seasonally adjusted.
To read the full release, download the
printable copy below:
Wisconsin
Housing Statistics Online
Wisconsin Housing Market Facts
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