Metropolitan Milwaukee home sales have been “robust” so far this year, with sales up 12.8% in March and 9.3% in the first quarter, according to the Greater Milwaukee Association of Realtors.
This observable strength could mean the market hits the ground running once the ongoing COVID-19 outbreak subsides and government stay-at-home orders are lifted, added organization officials.
The latest sales numbers for the metro area’s housing market plus observations of the virus’ impact on the industry were part of GMAR’s monthly update.
In March, 1,581 housing units were sold in the four-county metro area of Milwaukee, Ozaukee, Washington and Waukesha counties. That number totaled 2,095 when including Racine, Kenosha and Walworth counties, a 12% increase for the southeastern region over March 2019.
First quarter sales totaled 3,825 units in the metro area and 5,083, a 7.9% increase, for the entire region.
GMAR said state and local stay-at-home orders have had an impact on market activity this month, though no specific numbers were provided. GMAR said the shutdown orders delayed “several closings” of home sales, as real estate agents made adjustments to the sale process. Steps taken include keeping closing rooms clean and setting up virtual closings.
Brokers also reported substantially increased web traffic in the weeks following issuance of the stay-at-home mandates. The market could quickly normalize, assuming Gov. Tony Evers’ stay-at-home order expires on April 24 or soon after, noted GMAR.
“The resilience the market displayed before coronavirus, should be able to carry it through a few weeks of quarantining, particularly given the ability of buyers and sellers to operate virtually,” GMAR said in a news release.
March sales were strongest in Waukesha County among metro-area counties, which saw a 26.3% year-over-year increase. There was a 9.8% increase in Milwaukee County, a 5.4% increase in Washington County and a 2.1% decline in Ozaukee County.
Racine County, meanwhile, saw a 26.5% uptick in March. Walworth County registered a 4.1% increase while Kenosha sales declined 1.7%.
But Ozaukee County saw the strongest sales growth for the quarter, at 21.8% against the same three-month period last year. Following it is Waukesha County (15.5%), Washington County (14.4%) and Milwaukee County (4.8%).
First-quarter sales growth was more modest in other southeast region counties. Kenosha County saw a 4.4% uptick, Walworth County sales climbed 3.6% and Racine County sales grew 3.4%.
Average sale prices in all seven counties were up for the first quarter. This is unsurprising given the continued lack of inventory, particularly home prices under $300,000, noted GMAR.
Milwaukee County, which accounts for 57% of all metro area sales, saw a 14.9% gain in sales prices for the quarter. Waukesha County, with a 28% market share, saw a 9.5% increase in home prices.
Sale prices in Washington County grew 12.7% and in Ozaukee County grew 8.7%.
Walworth County saw its average sale price grow 28.7%, Kenosha County sales prices grew 10.7% and Racine County prices increased 4.7%.
Listings, meanwhile, were down 4.2% in the metro area and down 2.2% in southeastern Wisconsin in March.
But first quarter listings showed a different picture due to a nearly 24% jump in listings in February. Listings were up 5.4% in the metro area and up 5.4% in the region.
The seasonally adjusted inventory (the amount of time it would take to sell all of the homes on the market at a given time) of available homes in March was 3 months, down from 2.8 months in February and 3.2 months a year ago. These numbers indicate how many homes were on the market for the month to satisfy current demand. Generally, six months of inventory indicates a balanced market.
When subtracting listings that have an active offer, the inventory level was effectively 1.5 months in March, up slightly from February’s 1.3 months and nearly even with the 1.6 months in March 2019.
Get more news and insights in the March 30 issue of BizTimes Milwaukee:
