Greater Milwaukee Area Real Estate Market Update – First Quarter 2012

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The recent headline that blared across the newspaper reading “Home sales up 25%” brings home some GREAT news for all of us!  While the headline refers to the entire state, we thought we would take a look at our local numbers to share even more good news:

Single Family Homes Up in the Local Metro Milwaukee Market

We are reporting a 22% increase in home sales in the first quarter of 2012 as compared to the same time last year. This is a great sign as it shows increased consumer confidence and a shift in trends toward a seller-centric market. Last year 1,880 single family homes were sold versus this year’s 2,405. Homing in on the Roth Team, our sales this year shot up a very respectable 27% from last year with 78 homes sold in the first quarter of 2012 versus 57 homes sold at the same time in 2011.

Prices Bottoming Out

As we have been reporting for some time now, it is a phenomenal time to buy a home. Not only because prices are lower than they have been in a long time but also because we are still seeing record-setting low interest rates across the board!  Qualified buyers are getting rates as low as 3.7% in some markets, making the cost of their mortgage very affordable – regardless of the price of their home. Prices are currently 3.1% percent lower from last year and considering that they are comparable to 2004 levels, the price dip is a steep 15 to 25% from back then.

Fewer Homes Available Causes Shift in Market

Not all is lost for sellers in the current marketplace. In fact, since there are fewer homes on the market this year versus last the shrinking inventory is causing a shift toward a seller-centric market. At the end of the first quarter of this year we reported 9,090 single-family homes on the market as compared to 10,709 in 2011. This represents a 16% reduction in inventory making it an optimal time for sellers to obtain top dollar for their homes. To add to the lesser competition, sellers are also seeing multiple offers and are able to achieve at or near list price on their homes.
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If you would like to review your options – whether buying or selling – we invite you to meet with us so we can answer any questions, help you determine what buyers might pay for your home or help find your next dream home!