Home sales in the four county metro Milwaukee area were up 21 percent in August, compared to August of 2011, according to the latest date from the Greater Milwaukee Association of Realtors (GMAR).
“The 1,619 sales the Greater Milwaukee market had in August is still a little shy of where brokers would like to see it performing,” said Mike Ruzicka, GMAR president. “With 11,074 sales year-to-date (YTD), the market is acting as if it was in the early 2000s, when we saw YTD sales of 11,157 in 2000 and 11,982 in 2001.”
The supply of homes on the market, or the amount of time it would take to sell all of the homes that are for sale, is currently at 7.8 months, according to GMAR. A supply of 6-8 months is generally considered a balanced market. A supply of more than 8 months is generally considered a buyer’s market and a supply of less than 6 months is considered a sellers market.
“Current sales would be more robust were it not for a lack of supply of homes for salem,” Ruzicka said. “The plethora of homes listed for sale was a major characteristic of the recession from 2007 to mid-2011, when inventory levels were well above 10-months.”
August was the second month in a row with a supply level of 7.8 months, according to the GMAR. Inventory levels fell from 8.6 months in April to 6.3 months in June.
Home prices are also finally starting to rise in the area, Ruzicka said.
“Strong sales in the spring and summer market should result in price increases when the third quarter winds up at the end of September; as brokers report that many homes for sale are receiving multiple offers,” he said. “Sellers should be very cautious about boosting prices, however. It is not a seller’s market and buyers are still requesting discounts and concessions in their offers.”
