May 2021 Housing Market Update

This past weekend marked the summer solstice, the official start of summer. Our farmers finally got some much needed precipitation, as well. Then, today, the National Association of REALTORS® posted their monthly Existing Home Sales Report, showing the Midwest outperforming the other major regions of the U.S., confirming our MetroMLS‘s Market Report report that came out last week.

LOCAL MARKET

  • Summary: Lake Geneva-Delavan-Williams Bay Area up 49.1% in New Listings, 72.2% in Closed Sales & 8.1% in Median Sales Price, compared to this time last year!!

Below are the Local Market Reports by MetroMLS, and the Market Report: May 2021 by Dan Zielinski of FlexMLS, reflecting our hyperlocal multiple listing service area based out of the Metro-Milwaukee area, published on June 14th, 2021. Specifically, the images show the May 2021 housing statistics for Kenosha, Racine, and Walworth Counties as well as the Lake Geneva, Delavan, Williams Bay area. You will see across-the-board increases in New Listings, Closed Sales AND Median Sales Price.No matter which way you dice it, we are outperforming last years’ market – regionally, statewide, countywide and hyperlocally, and on every measure!

MARKET REPORTS: MAY 2021 (highlights)

As the weather warms and the first day of summer rapidly approaches, the U.S. housing market shows little sign of cooling down. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows.

[…] With such a limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers.

by Dan Zielinski of FlexMLS

STATEWIDE

  • Summary: Sales are up DOUBLE DIGITS, yes, even STATEWIDE, compared to last May (when everything was shut down due to covid-19).

On the state level, the Wisconsin REALTORS® Association, released their monthly market report with the headline, “Wisconsin Housing Market Strong Even as Inventories Remain Tight,” (Wisconsin Housing Statistics May 2021 Report). Here are some additional key takeaways:

May 2021 Home Sales Report (highlights)

– Both existing home sales and median prices rose by double-digit margins in May compared to their levels 12 months earlier, when the economy was in lockdown.

-Demand conditions are very strong with the 30-year fixed-rate mortgage dipping to 2.96% in May.

-The latest statewide employment data from April indicates a robust rebound from the depressed levels of April 2020, with 261,200 private sector nonfarm jobs added over the last 12 months.

-Total statewide listings fell 26.2% to just 21,195 homes for sale in May.

-Housing supply remains very tight with just 2.8 months of available supply in the state. Inventory is tight in all regions, across all urban/rural classifications and across all price ranges.

-Average days on the market dropped 24% to just 73 days statewide in May as competition for the limited supply intensified.

-Housing affordability slipped 7.1% as median home prices surged 14.2% over the past 12 months to $245,500 in May 2021.

Wisconsin Housing Statistics May 2021 Report by Wisconsin REALTORS® Association

NATIONALLY

  • Summary: Nationally, existing home sales went down -0.9%, but regionally, the midwest is outperforming the other major regions of the U.S., up +1.6% in May 2021 compared to May 2020!

As a country, the National Association of REALTORS® most recent Existing Home Sales Report, for May 2021, shows sales are down, but let’s be honest: a less than 1% dip should not scare buyers and/or sellers out of transacting. Additionally, please note sales are UP here in the midwest. The reason for this, to me, is obvious: nobody wants to move in 6 feet of snow! The following highlights are additional highlights from this release:

Existing-Home Sales (highlights)

-Existing-home sales are down for the fourth consecutive month.

-The median existing-home price for all housing types saw a record year-over-year increase of 23.6% in May 2021.

-Properties typically sold in 17 days

[…]

Existing-home sales in the Midwest rose 1.6% to an annual rate of 1,310,000 in May, a 27.2% increase from a year ago. The median price in the Midwest was $268,500, an 18.1% increase from May 2020..

Simmons, Quintin. “Existing-Home Sales Decline 2.7% in April.” NATIONAL ASSOCIATION OF REALTORS®

Other Market Updates:

May 2021 Housing Market Trends Report – Realtor.com Research

Speianu, Sabrina.May 2021 Monthly Housing Market Trends Report.” Realtor.com®

Sellers: Stay up to date on the Federal Reserve. Once mortgage interest rates increase, the number of ready, willing and *ABLE* buyers will decrease, and consequentially so will your upper hand in today’s sellers’ market. This will happen before the end of 2021, therefore, this is the best year to sell. Reach out if you have questions or would like a custom, free home valuation.

Your free, instant Home Valuation here: HomeValuationzByAnnie.com

Buyers: If your patience is wearing thin, its time to strategize. Reach out to see how I help buyers find off-market property to get an accepted offer before homes go on the market. Interest rates will go up, so please don’t wait. I’d be happy to help.

All the best,

ANNIE ZAMBITO
LICENSED REAL ESTATE AGENT
KEEFE REAL ESTATE  |  LAKE GENEVA, WI 53147
PHONE 262.348.3253   |   262.215.1982
EMAIL   azambito@keeferealestate.com  |  anniezrealty@gmail.com
OFFICE   262.248.4492  |  www.keeferealestate.com    



Sources

Local Market Reports.” MetroMLS®. June 22, 2021.

Zielinski, Dan. “Market Reports: May 2021.” FlexMLS® & Metro MLS ®. June 22, 2021.

May 2021 Home Sales Report.” Wisconsin REALTORS® Association. June 22, 2021.

Speianu, Sabrina.May 2021 Monthly Housing Market Trends Report.” Realtor.com®. June 22, 2021.

Existing Home Sales Report.” NATIONAL ASSOCIATION OF REALTORS®. June 22, 2021.

Simmons, Quintin. “Existing-Home Sales Experience Slight Skid of 0.9%.” NATIONAL ASSOCIATION OF REALTORS®June 22, 2021.

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