The State of the Market — August 2013

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A letter from Joseph A. Horning, President of Shorewest, REALTORS®

The Wisconsin real estate market has been very active so far in 2013.  Home sales for the first half of the year are up over 10% while homes coming to the market are down -2.8%. Digging deeper in the numbers, we can analyze the first and second quarters separately.  Home sales were up 14.2% in the first quarter and up only 8% in the second quarter, representing a softening in the market. The first quarter sales helped to alleviate pent-up demand. Homes being listed for sale in the first quarter were down -14.9% compared to last year and jumped up a positive 8.7% in the second quarter.

So what does all this mean?  Strong home sales have helped reduce the inventory of homes for sale by 6% which has had a positive impact on the months of supply.  Months of inventory have dropped from 7.4 months to 6.4 months.  The length of time it takes to sell a home has also decreased.  The average days for a home on the market dropped from 103 days to 91 days, a 12% decrease.  These are all very good signs for home sellers.

The results of the first 6 months have ushered in a more balanced market.  We are between a seller’s market and a buyer’s market with median sales prices rising up by 5.4% and a small decrease in the inventory of homes for sale.

Buyers have seen good homes sell quickly, sales of remaining homes remain strong, prices beginning to rise, and interest rates creeping up which have created a sense of urgency among buyers.  The days of waiting for the bottom are gone and the low cost of home ownership is beginning to increase. For seller’s, rising interest rates and the reduction in pent-up demand will mean slower market conditions in the second half of the year as compared to the first.  Not every area is the same and seeking the advice of a real estate professional will help to ensure your home is priced right for local neighborhood real estate conditions.

Another major highlight in the first quarter for the Shorewest Family of companies was our recognition as the Top Workplace in Wisconsin by the Milwaukee Journal Sentinel.  This honor is very humbling. It recognizes our dedicated team and the outstanding customer care they provide to every customer we serve.  Our success a direct result of the commitment to exceptional service demonstrated by each member of the Shorewest Family.

Return to the full Quarterly Newsletter here.

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Categories: Home Buying, Home Selling, Real Estate News

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