Lack of inventory caught up with the local residential real estate market in July.
Milwaukee area home sales were down 5.2 percent last month, with experts blaming the decrease on the lack of homes on the market, rather than a decline in demand.
“There is no concern about the decrease among realtors,” said Mike Ruzicka, president of the Greater Milwaukee Association of Realtors. “The underpinnings of the local economy are solid, with employment, interest rates, and lending all performing well. The strong economy is producing interest in home buying, particularly among first-time buyers, who brokers estimate comprise about 40 percent of the market this summer.”
July was the sixth month that area housing sales were down, year-over-year, since January of 2015, and July was the fifth month of the year with a decrease in listings in the four-county area.
All four metropolitan counties had a decrease in sales with Washington County leading the way with a 14.8 percent decline.
In Milwaukee County, 1,118 homes were sold in July, a 5.2 percent decrease from July 2016.
Based on a GMAR consumer survey conducted in May, sellers said they were holding off on listing because of concerns about policy changes in Washington D.C., such as mortgage interest deduction, taxes and health care, and recent remodeling to their current home, Ruzicka said.
“Tight inventory, plus high buyer demand is leading to increasing buyer frustration with the market, particularly among those searching for homes under $350,000,” Ruzicka said. “Buyers are seeing properties snatched up before they’ve had an opportunity to view them.”
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