How long can the residential real estate market go on like this? We are about
two years into a national trend of dropping housing supply and increasing
median sales prices. There are some regional variations to the story, but the
shift to a predominantly seller's market is mostly complete. Multiple-offer
situations over asking price are commonplace in many communities, and good
homes are routinely off the market after a single day. It is evident that a
favorable economy keeps hungry buyers in the chase.
New Listings in the Milwaukee region decreased 1.5 percent to 2,292. Pending
Sales were down 54.9 percent to 811. Inventory levels fell 4.4 percent to 6,067
Prices continued to gain traction. The Median Sales Price increased 10.2
percent to $216,000. Days on Market was down 33.9 percent to 39 days.
Sellers were encouraged as Months Supply of Inventory was down 2.4 percent
to 4.0 months.
Although the unemployment rate remains unchanged at its favorable national
4.3 percent rate, wage growth has not been rising at the steady clip that would
be expected in an improving economy. Sales activity manages to keep churning
along despite looming shortages in new construction. Lower price ranges are
starting to feel the effects of the supply and demand gap, as first-time buyers
scramble to get offers in at an increasing pace.
All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. You can follow this link:
Metro MLS Market Updates
The views and opinions expressed in this article are those of the authors and should reflect only on trends that affect the economics of real estate.