Housing market still on track, broker says

But September numbers are behind pace set in August

By Ed Nadolski

Editor in Chief

The housing market cooled off locally and statewide in September as classes began and families settled down for the new school year.

The median price for homes sold in September fell compared to the previous month, ending a six-month string of appreciating prices statewide.

The figures were similar for the three-county Kenosha-Racine-Walworth area with the number of homes sold falling from 550 in August to 421 in September, according to statistics compiled by the Wisconsin Association of Realtors.

The average median sale price for the three-county area also fell from $127,433 to $115,667 from August to September.

However, Steve Beers, president of Keefe Real Estate Inc., which has offices in Burlington, Delavan, Elkhorn and Lake Geneva, said he believes September’s numbers are more of a blip than an interruption of the slow climb the market has been on in 2012.

“Overall, it has been going in the right direction,” he said. “We’re seeing an improvement in confidence.”

While the September decline in sales and prices stops the slow climb in housing statistics during the first half of 2012, it is consistent with September figures over the past six years.

Since 2007, the average number of home sales has declined on average for the three-county area in an August vs. September comparison.

In general, that trend is also reflected throughout the state with total home sales this year dropping from 6,555 in August to 5,107 in September.

Locally, Racine County led the way with 182 home sales in September with a median price of $115,000. That price was $200 more than the median sale price for August in Racine County, making it the only local county to see an increase in price in the past month.

Beers said many of the indicators he watches point to the market continuing to improve. “What you are seeing is a fall off in the number of new listings, which is good to see,” he said, noting that reduced inventory creates a bit more competition and helps drive prices upward.

He said he is also encouraged by the fact that the market is seeing more homes being sold in the $100,000-$150,000 range.

“Walworth County is up 15 to 20 percent and Racine County is up 25 percent in that sales tier,” he said.

Sales of homes priced less than $100,000 have led the market most of the year, driven by the number of foreclosures.

And while foreclosures remain a major force, Beers said the market is “showing a little better dynamic” lately.

2012 vs. 2011

When comparing numbers from September 2012 to September 2011, the number of home sales is up and the median price down for the three-county area.

Area home sales numbered 421 last month compared to 394 in September 2011. The median price, however, was down from $134,000 in 2011 to $115, 667 this past September.

Overall, however, it appears the median price is on pace to eclipse last year’s mark by the end of the year in the three-county area. Through the first nine months of 2012, median sale prices in the area stand at $120,508, compared to $123,000 for the same period in 2011.

Walworth County – which has a higher percentage of high-value lake properties –leads the way locally with a year-to-date median sale price of $146,000, which is already ahead of the 2011 pace of $144,000.

In Kenosha County those figures are $110,525 ($118,000 in 2011) and in Racine County the numbers are $105,000 ($107,000 in 2011).

Beers said transactions at Keefe are up 25 to 30 percent over last year’s pace.

“We’re starting to see people solidify their credit and they are buying,” he said.

The biggest challenge for real estate professionals, however, is holding transactions together through the inspection and financing process. As many as 40 percent fall through before closing.

“Getting an offer is only 30 percent of the full transaction,” he said.