Pulse Price Report: Wisconsin Outpacing National Home Sales

The Wisconsin Realtors Association (WRA) reported a nine percent increase in August home sales compared to 2015 and an increase of five percent in median home price from July. The increase in both home sales and price indicates unchecked demand for housing that is most pronounced around cities.

Milwaukee County saw nearly a 10 percent increase in home sales and six percent increase in median price from August of last year. Dane County had a 14 percent increase in home sales, with a modest two percent increase in median price.

In Door County, August home sales were unmoved, with 69 homes sold in August this year compared to 70 sold in 2015. Median home price is down 13 percent in the same year-by-year comparison from $218,000 to $190,000.

While Wisconsin boasts a burgeoning housing market, Door County is following the national trend of home sales losing steam amid low inventory and higher prices.

“Low inventory and high prices have led to an overall decrease in real estate firm’s sales volume since last year’s report. High home prices are holding back first-time buyers and low inventory means fewer sales,” said Tom Salomone, president of the National Association of Realtors, in a news release.

Typically, when the median prices of homes increase, the number of sales decreases, but that has not been the case in Wisconsin. David Clark, a Marquette University economics professor and WRA consultant, told Wisconsin Public Radio that low unemployment and low mortgage rates are encouraging homebuyers even though homes are more expensive than they were a year ago.

With many Door County homes being seasonal vacation homes, it is possible that low unemployment won’t affect purchase of second homes in the county, since the population remains relatively stagnant. Continued economic growth elsewhere in the state may encourage those second homebuyers to look to Door County, but that would also require mortgage rates to stay low enough while people save up for their dream home on the peninsula.

Crop prices (Sept. 20)

Rio Creek Feed Mill – Algoma

Fox River Valley Ethanol – Green Bay

Basis: The difference between the local cash price for a commodity and the Chicago cash price (where the Board of Trade sets national futures price).

Gas Price Averages

United States: $2.21

United States one year ago: $2.29

Wisconsin: $2.19

Wisconsin one year ago: $2.37

Northern Door: $2.25

Sturgeon Bay: $2.25

Other Commodities

Gold: $1,318.30/troy ounce

Silver: $19.29/troy ounce

Oil: $43.92/barrel

Sources: aaa.com, agweb.com, gasbuddy.com, cnn.money, Wisconsin Public Radio, Wisconsin Realtors Association, National Association of Realtors