As summer is drawing to a close (don't cry, just think "Badger Foortball"!), it is a great time to look at how the market did in the past quarter. Home sales once again improved over the same quarter in 2009, and while median home prices fell from the prior year, it was not the drastic cut that we saw between 2008 and 2009.
Q1
Q2
Q3
Q4
Year End
2005
1307
2682
2540
1175
7704
2006
1154
2424
2078
1248
6904
2007
1246
2417
1999
1098
6760
2008
925
1885
1665
877
5352
2009
713
1712
1868
1143
5432
2010
847
2199
Median Price
Q1
Q2
Q3
Q4
Year End
2005
$205,000
$206,950
$213,000
$218,000
$210,000
2006
$212,500
$209,900
$215,000
$220,000
$214,000
2007
$214,900
$212,500
$222,000
$223,873
$217,900
2008
$209,000
$214,900
$217,000
$218,000
$215,000
2009
$202,500
$201,500
$207,250
$190,500
$200,700
2010
$200,000
$200,000
n/a
n/a
n/a
So what does this really mean? Does it mean that homes will continue to sell at the rate that they are? Not necessarily. The First Time Home Buyer Tax Credit encouraged the majority of first time buyers to make their offers and close on their homes prior to June 30, 2010. While there are still first time buyers in the market who missed the tax credit deadline for whatever reason, the increase in home sales seen in 2009 between Q2 and Q3 (once again, bumped by the original tax credit bill) will most likely not be seen this year.
The good news in this equation is the decline in unemployment in Wisconsin. Hitting 7.9% recently, down from over 10% just as of January 2010, we will hopefully see increased consumer confidence. It's not just about people having jobs, it's about people feeling comfortable enough with the economy to make a move. You wouldn't believe how many people tell me, "Well, I would love to sell my home and buy a larger/smaller/more modern/more central/less central home.......but I just can't imagine making a move at a time like this!"
An interesting theory out there is that the relocation buyers from last year may be ready to purchase a home this year. Many Relocation departments suffered last year, because even though qualified buyers were moving in to the city, they had homes to sell in their previous cities, and most often opted to rent for a year - some companies were especially encouraging their new employees to rent for a year and really get to know the local market. If this theory does pan out, we could see a bump in the medium to higher-priced real estate market (like my listing at www.45cambridge.restainohomes.com ;) ).
If you have any questions or would like more information about a specific market or neighborhood, please send me an e-mail at heidit@restainohomes.com !
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