It's tempting to confuse market normalization with a possible slowdown. But those equipped with high-quality MLS data know better. As mortgage delinquencies fade, banks are listing bargain-priced product less often. That means investor activity – which accounts for a substantial market share – is moderating. That's not to say that rates and prices aren't still attractive to owner-occupant buyers. They most certainly are. Some short-term volatility is expected as part of a normal market readjustment.
New Listings in the Milwaukee region decreased 2.8 percent to 1,743. Pending Sales were down 40.2 percent to 711. Inventory levels shrank 3.8 percent to 6,637 units.
Prices marched higher. The Median Sales Price increased 3.7 percent to $155,000. Days on Market was down 12.3 percent to 94 days. Absorption rates improved as Months Supply of Inventory was down 5.7 percent to 5.1 months.
The economy has more or less shuffled along, despite some climate-induced surprises to job growth and new construction. There is no denying the fact that we've now seen 47 straight months of private job growth, creating 8.5 million new payrolls. There's still work to be done. Thankfully, with such low inventory levels, many builders are bullish on new construction. The spring market is budding, and it should be an interesting one.
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