Despite some choppy waters in August, there have been noteworthy shifts on both sides of the closing table. Buyer activity is moving back in line with historical trends while sellers are making fewer concessions in order to sell their homes. Falling supply and improving absorption rates in many regions also suggest that market balance is realigning towards neutral. Locally, some indicators stabilized relative to August 2010, but do the rest of the numbers provide reason for optimism?
New Listings in the Milwaukee region decreased 7.7 percent to 2,127. Pending Sales were down 2.6 percent to 863. Inventory levels shrank 5.7 percent to 11,581 units, dampening any potential oversupply issues down the road.
Prices dipped lower. The Median Sales Price decreased 8.9 percent to $173,000. Days on Market decreased 3.5 percent to 103 days. Absorption rates slowed as Months Supply of Inventory was up 9.7 percent to 12.7 months.
The economy bobbed along just this side of positive in August. Consumer confidence, which often affects housing demand, showed some slack even as personal income and spending both increased modestly. Low interest rates, declining supply and stabilizing prices are beacons of hope in the harbor, but the recovery still needs wind in its sails.
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: http://www.metromls.com/support/Market_Updates/index.html or visit www.metromls.com.
Any questions, please call the Help Desk at 414.778.5450.
Or e-mail email@example.com. You may also follow our updates at http://twitter.com/metromls.