Home sales were up in December 6.6% in the Metropolitan Milwaukee market for the fourth consecutive month. 1,252 homes sold in December compared to 1,174 in December of 2013. Comparing the numbers to 2012, sales were stronger yet, up 11.1% (1,127 in ‘12). It was also the strongest December we have seen since 2005, when 1,311 units sold.
For the year, the market saw 17,749 total sales, compared to 18,203 in 2013, a 2.5% decline. Earlier reports pegged 2014 finishing about 10% behind 2013, however, the strong sales during the last four months of the year gave the year-end tally a boost.
“Normal” Market
Brokers reported a different kind of market early on in 2014. They were delighted by the market’s change from one filled largely with distressed properties (short sales and foreclosures) in 2013, and the years prior, to a more “traditional” market, characterized by first-time buyers; moveup buyers with children looking for a larger home; and empty-nesters moving into a new home or condo.
Listings Increase
December was the 10th month of increased listings in 2014. However, listings in December are usually very low due to the Holidays and 2014 was true to form, accounting for about 1/3rd of the listings we see at the height of the market.
Inventory
The seasonally adjusted inventory level for December was 6.3 months, a drop from November’s 7.1 month level. The seasonally adjusted level was 6.1 months in December 2013.
Subtracting the 846 listings with an active offer from current listings presents an effective inventory level of 4.4 months, slightly lower than November’s 5.0 month level. A year ago, the same calculation showed December’s inventory level at 4.4 months as well.
Average Sale Price
The average sale price in all four counties was up in 2014. Milwaukee County lead the way with the largest percentage and actual dollar gain.
The total dollar value of sold properties in the 4-county Metropolitan area in 2014 was $3,597,781,611.
Market Challenges
Despite all the positive news in 2014, the market does have its challenges. Tight credit standards, low inventory and fewer first-time buyers (possibly related to high student debt) all may be weighing the market down.
Nonetheless, there were more positives than negatives in 2014 and it appears that 2015 will continue on the same track.
The information was provided by the Greater Milwaukee Association of Realtors.