2,370 homes sold in June compared to 1,924 in June of 2014. Comparing the numbers to 2013, sales were up 23.1% (1,925 in ‘13).
Through the 2nd quarter, Milwaukee County lead the region with 4,981 sales. All four metropolitan counties saw very healthy increases in units sold.
So far, the 2015 market is very solid as buyers quickly absorbed available listings in April and May, which closed in June. The GMAR expects this trend to continue in the second half of the year, but with smaller increases. Based on recent data it appears that total sales for 2015 will be in the 18,548 range, about 8.2% ahead of 2014. Despite dropping 3.7% in June, new listings are up 2.3% for the first six months of the year. A little more volume in listings is helping to alleviate strong buyer demand, but demand is still outstripping supply.
Inventory
The seasonally adjusted inventory level for June was 7.7 months, up slightly from May’s 7.6 month level. The seasonally adjusted level was 8.5 months in June 2014.
Subtracting the 2,294 listings with an active offer from current listings results in an effective inventory level of 4.9 months for June, flat from May’s level. A year ago, the same calculation showed June’s inventory level at 5.8 months.
The decrease in inventory, by almost a full month in the last year, portrays how tight the market is in 2015. There are a few more listings in 2015, but more active buyers, which should express itself in higher sales numbers and prices in the coming months.
Average Sale Price
The average sale price in all four counties was up solidly in the 2nd quarter of 2015. While price gains are firm and welcome, the market has not completely recovered from a very deep recession.
Prices for the 2nd quarter in the 4-county region peaked with an average sale price of $259,473 in 2006, and bottomed out at $205,120 in 2012, a 20.9% drop. The following table shows where each county is in the recovery and how much each needs to grow to get back to peak prices.
Market Challenges
Low inventory is certainly a drag on the market, and several brokers are still reporting that appraisals are coming in too low, often jeopardizing transactions.
The Greater Milwaukee Association of REALTORS®