Market Update – Homes Sales End 2011 on High Note
For the sixth consecutive month, home sales in Dane County exceeded those of one year ago, rising 8.6 over December 2010. For the entire SCWMLS, sales in December were up even more – increasing 10% over last year.
After a slow start when compared to 2010, 2011 rebounded quite well. In June, Dane County sales trailed by 25.6%; at year end, the deficit was reduced to just 6.1%. Overall in south central Wisconsin, the margin was only 3.5%.
The median price in Dane County for this year continued to track virtually even with the annual 2010 median price $206,350 compared to $207,000 – and is slightly above that of 2009 ($202,000).
New listings in December rose very slightly but for the year fell by 12% in Dane County. This continues the year to year downward trend. For the entire region, new listings dropped 8.1% in 2011. As a result, the Dane County active inventory is 9% less than 2010, and stands at the lowest year end total since 2004. The reduction in inventory moves the market closer to balance in terms of supply and demand.
On the financing front, cash sales continue to be a significant percentage of total transactions – this month representing almost 23%.
2011 sends us into the New Year with optimism. As has been noted previously, the market offers many, many advantages – especially with respect to historically low interest rates and high affordability factors. Like last month, showing activity reports are substantially ahead of this time last year. Many economists are predicting gradual recovery – for the economy, in general, and for housing, specifically. This past year – standing on its own – free of artificial stimulus programs – has provided an excellent foundation on which to build the recovery of the market, beginning in 2012.
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 insights, and buyer and seller tips.
Category: Industry News
