The South Central Wisconsin MLS this week reported 676 house and condominium sales for Dane County in May, up 18.4 percent from 571 in May 2009. The median county price in May was down 2.4 percent from a year ago, or $200,125 compared to $205,000 in May 2009.
(See the full MLS report in the attached PDF. It includes sales numbers and listings for counties throughout the region and a breakdown of additional statistics for May. Among other things, the additional data shows how people financed new homes in May -- the number paying cash vs. a conventional mortage vs. WHEDA, FHA, etc., as well as reports showing the number of current listings by price range and the number of sold listings by price range and number of bedrooms.)
Year-to-date through May, Dane County saw 2,170 sales, up 28 percent from 1,696 in the same period last year. The median price through May was down 1.7 percent, to $199,500 from $203,000 in the same period last year.
Kevin King, executive vice president of the MLS, attributed the increased sales and lagging median prices to the "flurry of activity" generated by the federal first-time home buyer tax credit for purchases signed by the end of April and closed by June 30.
First-time buyers generally buy lower-priced homes, helping to keep the median price down, among other factors such as increased foreclosures and depressed values from the housing market collapse.
King also noted pending federal legislation -- first reported in Property Trax here -- could extend the closing deadline to Sept. 30, in the face of reports that many home buyers using the credit may not be able to close by June 30 because banks are so busy processing all the new purchase agreements.
Looking at houses and condos separately in Dane County, the MLS report showed sales of houses in May up 20 percent from last year and sales of condos up 12 percent. The median sales price for houses alone was $215,000, down less than 2 percent from May 2009, while the median price for condo sales in May rose 2.3 percent to $145,000 - for only the second time this year.
Dan Miller, a Keller Williams agent who analyzes market data at DaneCountyMarket.com, called May's sales report "good," but maintained the local housing market has already started changing from what it was in May, with noticeably less buyer activity.
"Now that two years of stimulus programs have come to an end, buyer web traffic and buyer showings have slowed," Miller said. "Buyers are still out in the market, but in lower numbers."
"Sellers, it's important for you to understand the market has shifted," Miller added. "Buyers, you have plenty of opportunities in this new market."
(You can see Miller's report of the May numbers here and his blog analysis here.)
Miller also predicted that June sales would continue to be good, while the July housing report would show a drop in sales.
In other counties throughout the region, results in May were mixed, the MLS reported.
Increased sales were seen in Dodge, Green and Rock counties, while Grant County sales in May matched the tally a year ago and sales were down in Columbia, Iowa and Sauk counties. Year-to-date through May, sales in all counties were up from 2009, except in Grant County, where they were down less than 4 percent.
King said "key indicators" suggest continued moderate sales in the coming months, amid cautious optimism by analysts that the market is finally "on its way to normal."
"Inventories are still ample in most locations and price ranges," King said. "Prices continue to be relatively stable, with no major fluctuations in any direction. Interest rates are even lower today than in April, when the tax credit was winding down."
(Article by Karen Rivedal, Wisconsin State Journal Reporter)
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