|
|
Fourth Quarter and Year-end 2009
Home Sales Rally in the Fourth Quarter to Keep Wisconsin Housing Market Stable
Date: February 11, 2010
MADISON, WI–Home sales in Wisconsin rallied in the fourth quarter after steady improvements throughout the year, bringing final 2009 existing home sales back to their 2008 levels, according to the year-end analysis of home sales conducted by the Wisconsin REALTORS® Association (WRA). At the same time home prices were down by modest margins, as they were in much of the Midwest, but down much less than in other parts of the country.
“In the end, Wisconsin home sales in 2009 were unchanged from 2008,” said WRA President William Malkasian, “but it was really a tale of two halves. The first half of the year was down significantly compared to 2008, and the second half of the year grew at a very healthy rate.”
According to the REALTORS®’ report, fourth quarter home sales in Wisconsin were 25.6 percent above the same quarter in 2008. Malkasian explained this was due to several factors including favorable interest rates and the federal first-time home buyer’s tax credit. “Mortgage rates remained at historic low levels, just under 5 percent |
 |
|
in the fourth quarter, and first-time home buyers were scrambling to get their homes closed when they thought the federal tax credit was expiring at the end of November 2009,” Malkasian said. “With sales improving each quarter last year, the general trend for the future is favorable,” he said, but cautioned, “While the recession is probably officially over, we really need to start seeing healthy job growth before the economy truly starts to recover.” Unemployment stood at 8.7 percent in December, and Wisconsin seasonally-adjusted employment dropped by nearly 120,000 jobs in 2009.
State median home prices fell 7.7 percent to $143,000 in 2009 as compared to 2008. This is in line with the Midwest region, where median single-family home prices fell 5.3 percent over the year, and it is better than the decline of 11.9 percent for the U.S. The West region of the U.S., which has been hit hard by heavy foreclosure activity, saw its median prices drop 18.7 percent in 2009 versus 2008.
“We do appear to be turning the corner in the state, with healthy inventories and moderating prices,” said John Flor, chairman of the WRA Board of Directors. “The extension of the federal first-time home buyer’s tax credit and the expansion to include tax credits for existing homeowners should help entice buyers off the fence and into the market,” Flor said. Flor noted these tax credits can only be taken on home sales with a contract by the end of April, and closing by the end of June. “We hope this additional tax stimulus will supplement the improving market conditions to make 2010 a better year to buy and sell real estate in Wisconsin.”
About the WRA
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing more than 13,500 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. |
