Wisconsin home sales in July were down 7.6 percent from one year ago, but still were at the second best level since 2005.
The drop in home sales last month is being blamed on fewer homes on the market overall this year. Home prices in July continued to increase and were up 4 percent over July 2015, to a statewide median of $170,000, according to the Wisconsin Realtors Association.
There were only three times since 2005 when July sales topped 8,000: July 2005, when 8,020 sales closed; July 2015, when 8,866 homes were sold; and July 2016, when sales closed on 8,189 Wisconsin homes. Weak inventory levels kept sales down in every region of the state.
The central region fell 1 percent and the southeast region fell 2.7 percent compared to to July 2015. The west region dropped 7.4 percent; and the north, northeast and south central regions slid between 10.4 percent and 13 percent compared to the previous year.
“No matter how you slice it, this points to an inventory problem and not weakness tied to economic factors,” said Michael Theo, president and chief executive officer of the WRA. “The economy is in solid shape, with state unemployment rates low, solid job creation and very low mortgage rates by historical standards.”
Since July 2012, median home prices have increased 19.7 percent, which is an annual compounded rate of growth of about 4.5 percent. Still, housing remains affordable in the state due to low mortgage rates.
“Buyers need to move quickly when they find that home that meets their needs because they don’t sit on the market long,” Theo said.
Average days on the market are down to 83 days, which is the lowest level since summer 2005 when they fell to 81 days.
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