State home sales and prices fall in 2nd quarter

Homes sales and home prices fell in Wisconsin during the second quarter, compared to the second quarter of 2008, according to a report from the Wisconsin Realtors Association.

Home sales in the state were down 10.5 percent during the second quarter, which exceeded the 5.3 percent decline in the Midwest and 2.9 percent national decline for the quarter. However, the state's first quarter decline was an improvement from its 19.2 percent decline for all of 2008, compared to 2007, and the 22.6 percent decline in the first quarter of 2009, compared to the first quarter of 2008.

"It is encouraging to see the pace of the contraction of Wisconsin home sales moderate," said Michael Mulleady, chairman of the board for the Wisconsin Realtors Association. "This is the first indication that we may be getting ready to turn the corner on real estate in the state."

In southeastern Wisconsin, Milwaukee County was the only county that had an increase in home sales during the second quarter, with 2,392, a 7.7 percent increase. Second quarter home sales for the other counties in the region: Kenosha, 476, down 19.3 percent; Ozaukee, 238, down 8.4 percent; Racine, 572, down 13.5 percent; Sheboygan, 341, down 30.5 percent; Walworth, 294, down 8.5 percent; Washington, 384, down 8.9 percent; Waukesha, 1,199, down 18.7 percent.

Median home prices in the state fell 9.9 percent to $146,000 in the second quarter.

"These data need to be taken with a grain of salt because lower priced homes are moving more briskly than higher priced homes, thus skewing the median price downward," said William Malkasian, president of the Wisconsin Realtors Association. "The most important factor is the federal tax credit on housing, which qualifies first-time buyers for up to $8,000 tax credit on their purchase. This is a strong enticement for first-time buyers who typically buy lower cost starter homes, but it also brings down the state median price. Still, sellers remain highly motivated and when you combine the available tax credit with mortgage rates at near historic lows it makes this an excellent market for credit-worthy buyers."

In southeastern Wisconsin every county had its median home sales price decline during the second quarter. Milwaukee County was down 18.7 percent to $128,900; Kenosha, down 12.7 percent to $145,500; Ozaukee, down 7.7 percent to $226,300; Racine, down 14.4 percent to $140,000; Sheboygan, down 11.5 percent to $126,700; Walworth, down 8.3 percent to $173,300; Washington, down 8.2 percent to $182,000 and Waukesha, down 5.8 percent to $228,300.

For all of southeastern Wisconsin, the second quarter median housing price was $158,000, down 13.3 percent.