We're halfway through 2012, and what a year it's been. Residential real estate has finally taken some meaningful strides toward recovery, and they've all been self-powered without divine (or governmental) intervention. Yes, there have been some head fakes in the past, but there's real reason to believe that market turnaround awaits us. Beyond home prices, key metrics to watch include Days on Market, Percent of List Price Received and Months Supply of Inventory. Locally, a few indicators showed improvement. Let's see what the rest of our local data has to say.
New Listings in the Milwaukee region decreased 14.5 percent to 2,218. Pending Sales were down 13.7 percent to 1,068. Inventory levels shrank 16.2 percent to 9,947 units.
Prices moved higher. The Median Sales Price increased 1.4 percent to $180,000. Days on Market was down 8.7 percent to 97 days. The supply-demand balance stabilized as Months Supply of Inventory was down 33.5 percent to 8.9 months.
We seem to be at a critical inflection point in our search for more employment opportunities. Job growth provides the dual benefit of stimulating new household growth as well as relieving distressed homeowners. There's also the positive feedback loop of housing creating jobs and jobs creating housing. Keeping the affordability picture afloat, the Fed has vowed to keep interest rates around 4.0 percent through mid-2013.
All data for the market reports comes from the Multiple Listing Service, Inc