Home sales in the four-county metro Milwaukee area were down 17.2% in July, year-over-year, and home sales in the greater southeastern Wisconsin region were down 18.2% for the month, according to the latest report from the
Greater Milwaukee Association of Realtors.
July home sales by county, compared to last year:
- Kenosha – 194, -28.1%
- Washington – 178, -27.6%
- Milwaukee – 1,137, -19.1%
- Walworth – 155, -18.4%
- Racine – 275, -17.2%
- Ozaukee – 126, -16.6%
- Waukesha – 599, -9.7%
The decline in home sales in the area comes after a record-setting sales year in 2021, according to GMAR president Mike Ruzicka. Year-to-date sales in the metro area are up 6% compared to 2020, he pointed out.
“July sales were negotiated in June, when interest rates were starting to climb,” Ruzicka said. “That undoubtedly scared a few buyers away.”
However, Ruzicka said, “brokers have been reporting very strong interest among buyers looking for homes all summer. Especially first-time buyers. And many of those first-time buyers are still getting out-bid on properties.”
Listings of homes for sale in the four-county metro area were down 19.6% in July, year-over-year, and in the greater southeastern Wisconsin region were down 20.3%.
“Curiously, listings were down across the metropolitan area and region,” Ruzicka said. “Listings usually do slow later in summer, but the current decline is unusual.”
The limited supply of housing in the area has contributed to a 10.2% year-over-year increase in average home sales prices in the four-county metro Milwaukee area, according to GMAR.
“The systemic problem with the market is the lack of new construction of single-family houses and condominiums, and the over production of apartments,” Ruzicka said. “That bottleneck combined with the demographic surge of Millennial and Gen Z buyers and historically good interest rates have all contributed to an historically tight (housing) market.”
Apartment rents in the area are rising because new households have a lack of options to find a home, according to Ruzicka.
“If the region does not create additional supply in the form of more single-family and condominium units, thousands of would-be homebuyers will be forced to continue to rent, foregoing the opportunity to build wealth through a home’s equity and all of the other benefits of homeownership,” he said.
