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September 2011 – Home Sales Up for Third Straight Month

[ 0 ] October 19, 2011 |

 

Home sales in Dane County are up 23% for September, marking the third month in a row of increased sales compared to 2010. For the entire SCWMLS, September sales are 19% ahead of the previous year. This continues to support the industry prediction that the second half of 2011 would see a marked improvement compared to last year.

The year-to-date sales gap between 2011 and 2010 has narrowed again. The SCWMLS trailed 2010 by 20.6% at the end of June. Now, at the end of the third quarter, the difference is only 7.4%. Similarly, the gap in Dane County has been cut from 25.6% to 10.8%. Nothing has changed expectations that this trend will remain for the balance of the year.

The median sale price for Dane County, representing the midpoint of all closed sales ranked from lowest to highest price, stayed virtually identical in 2011 compared to 2010 – $206,000 (2011) vs. $205,241 (2010). For the entire SCWMLS, the median sale price trails 2010 by 3.8%.

Total active listings in Dane County and the SCWMLS continue the year-to-year downward trend. Likewise, new listings are down in both Dane County and the SCWMLS for the month and year-to-date.

In breaking down the Dane County numbers, single family home sales and condominium sales are each up over 20% for the month. The largest drop in total active listings is in condominiums – down 12% from 2010.

The most popular price range for active listings in the SCWMLS once again is between $100,000 and $300,000 (60.2%), with the largest segment in the $100,000 – $200,000 range (38.6%). From all sales of single family homes reported for the month, 38.1% were between $100,000 and $200,000 and 18.1% between $200,000 and $300,000. For condominiums, 48% of the active listings and sales are priced from $100,000 to $200,000.

The increased activity for the past three months is encouraging as we enter into the fourth quarter of 2011. Interest rates remain at record lows, affording buyers with a historic low cost of ownership. However, demand still appears to be suppressed by federal regulations making qualification for a mortgage loan more difficult. At the same time, confusion as to the availability and qualifying criteria for home loans also appears to be holding potential purchasers back (No, 20% down payment is notrequired). In spite of the challenges yet facing our markets, we firmly believe the fourth quarter will be far better than 2010, leading us into 2012.

Please download our Market Update, our monthly examination of South Central Wisconsin’s residential real estate market.  We believe this guide will be a useful tool for you, providing local statistics, industry insight, and buyer and seller tips.

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