Metro Milwaukee home sales had banner year in 2020

GMAR notes record monthly, annual sales to close out year

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โ€œThere are few superlatives left to describe the 2020 real estate market,โ€ says the Greater Milwaukee Association of Realtors, in describing the performance of home sales in the metro area for last year.

In 2020, a year marked by a global pandemic, political strife and a sputtering economy, home sales came in at their highest level ever โ€” at 22,445 units โ€” in metropolitan Milwaukee, according to GMAR.

The metro area includes Milwaukee, Ozaukee, Washington and Waukesha counties.

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It saw a 6.2% increase in sales over 2019. It also recorded a record December in home sales, a year-over-year increase of 25.9%.

The entire southeastern Wisconsin region saw December sales climb by a nearly identical 26%. The region saw a slightly greater increase in home sales for 2020, up 6.6% over the year prior.

In addition to the metro Milwaukee counties, the southeastern Wisconsin region also includes the counties of Kenosha, Racine and Walworth.

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GMAR notes in its monthly home-sales report that a typical market in December would have seen around 1,500 units sold in metro Milwaukee, instead of the 1,800-plus units sold last month.

December sales climbed highest year-over-year in Walworth County, a 37.4% jump. This was followed by Kenosha County (34.6%), Milwaukee County (31.9%), It was followed by Waukesha County, at 23.6%, Ozaukee County (14.9%), Racine County (14.4%) and Washington County (7.5%).

Annual sales in 2020 saw the highest jumps in Racine County (10.6%) and Ozaukee County (10.3%). Kenosha County saw the smallest increase in homes sales for the year, at 4%.

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GMAR attributes the record-breaking year to the COVID-19 pandemic, which led many people to hunker down in their homes for most of the year.

โ€œWorking and attending school from home changed how the public viewed housing,โ€ the group notes. โ€œIt no longer was simply a place to go to each night, but a place to stay all day long.โ€

Sales stalled in the spring due to the onset of the COVID-19 pandemic in Wisconsin. But it took off after statewide lockdown orders were lifted.

The record sales are a testament to the strength of buyer demand, adds GMAR. Demand has been strong since 2016.

The average sales price in the metro Milwaukee counties was up 6.8% in 2020, to roughly $325,300. GMAR says this should come as no surprise, given the lack of inventory of homes priced under $300,000.

Seasonally adjusted inventory of homes for sale, after taking out listings with an active offer, stood at 0.8 months. This is a level never seen before, GMAR states.

The 0.8 monthsโ€™ of inventory means there are enough homes listed for sale to satisfy less than one month of demand from buyers.

An inventory of 6 months indicates a balanced market. Anything under that is a sellerโ€™s market, and anything above that is a buyerโ€™s market.

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