Metro Milwaukee home sales rose 1.7% in August
July numbers hit by short supply
After slowing in July amid a short supply of homes on the market, sales of existing homes in metropolitan Milwaukee picked up again in August.
A report Tuesday by the Greater Milwaukee Association of Realtors shows home sales rose 1.7% last month from August 2016 in the four-county area, to 2,154 from 2,117.
“August was the sixth month of the year that saw increased sales. The underpinnings of the local economy are solid, with employment, interest rates and lending all performing well,” Mike Ruzicka, president of the local Realtors organization, said in his monthly report.
In July, sales had slipped 5.2%, which Realtors said was a result of an inventory shortage.
Through August, closings on homes were up 1% from the first eight months of 2016 in the market that includes Milwaukee, Ozaukee, Washington and Waukesha counties, to 14,237 from 14,100.
Ruzicka said many consumers are looking to buy their first home in the metro Milwaukee area.
“The strong economy is producing interest in home buying, particularly among first-time buyers, who brokers estimate comprised 30%-40% of the market this summer,” he said.
There could be a larger pool of homes to choose from as the summer ends. Listings in the four-county area increased 5.8% in August from August a year ago, with a 9% rise in Waukesha County, to 784 from 719, and a nearly 30% increase in Ozaukee County, to 175 from 135.
“While the increase in listings in August is welcome, the drought in homes available for sale is still critical, leading to buyer frustration, particularly among those searching for homes under $350,000,” Ruzicka said. “Buyers are seeing properties snatched up before they’ve had an opportunity to view them.”
Many “move-in ready” homes are seeing multiple offers, but not the size or scale seen in the early part of the last decade, Ruzicka said. He said buyers are bidding prices up, but they are constrained by their borrowing ability and their lender’s appraisal.
In August, home sales rose in all but Waukesha County compared with August a year ago. Sales in Milwaukee County were up 2.9%, to 1,145 from 1,113. Sales rose 1.8% in Washington County, to 228 from 224, while increasing 5.3% to 160 from 152 in Ozaukee County. Sales slipped 1.1% in Waukesha County, to 621 from 628.
The monthly report didn’t include price information, but data from the Wisconsin Realtors Association shows the August median price for homes sold in Milwaukee County was $155,000, compared with $142,000 a year ago. In Washington County, the August median price was $229,000, up from $221,250; and in Waukesha County, the median price increased to $280,000 from $271,000. The August median price fell in Ozaukee County, to $277,450 from $280,000.