Q1 – March 2021 Housing Market

As the prophetic Bob Dylan once said, “The Times They Are a-Changin’.” The truth is: markets can be volatile. While the future of our evolving economy is unknown, an apocalyptic frame of mind is counterproductive. Remember, as of March 2021, all ‘year-over-year’ numbers and percentages will reflect the difference between today and the beginning of the pandemic; please pause before drawing conclusions based on comparisons to black swan event derived data points. The following are highlights from recent housing market press releases regarding national and metro-Milwaukee area trends.

National Highlights:

Month-over-month, existing-home sales fell in all major regions of the country, but were up 12.3% year-over-year, and the median existing-home sales price hit a historic high of $329,100.
March Existing Home Sales, National Association of REALTORS®

Existing-home sales fell in March, marking two consecutive months of declines […]. The month of March saw record-high home prices and gains. While each of the four major U.S. regions experienced month-over-month drops, all four areas welcomed year-over-year gains in home sales.
Existing-home sales in the Midwest declined 2.3% to an annual rate of 1,280,000 in March, a 0.8% rise from a year ago. The median price in the Midwest was $248,200, a 13.5% increase from March 2020.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.08% in March, up from 2.81% in February. The average commitment rate across all of 2020 was 3.11%.
Simmons, Quintin. “Housing Market Reaches Record-High Home Price and Gains in March.” NATIONAL ASSOCIATION OF REALTORS®

Metro-Milwaukee Highlights:

Normal spring increases in sales activity, coupled with relaxing COVID-19 policies, created a very busy March real estate market as buyer demand continued largely unabated in the face of rising home prices and mortgage rates. Existing home seller and new construction activity continue to remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months.
[…] While many homebuilders are working to increase their activity, the cost of lumber and other materials and a backlogged supply chain continue to limit new home construction and have increased costs substantially. New methods of construction, including 3d printed homes, could speed construction and reduce costs in the future, but realistically are several years away from making a measurable impact in the market.
Zielinski, Dan “Monthly Indicators“

The most inciteful graphs to note in the above Local Market Reports by MetroMLS & ShowingTime, are the “Year to Date” figures. In Q1 of 2021, compared to Q1 2020, we have seen fewer new listings, but technically more closed sales across Kenosha, Racine & Walworth Counties. Also noteworthy: median sales prices have gone down, in the month of March 2021 compared to March 2020, throughout Southeastern Wisconsin.

Sellers: If you have considered selling, but are stuck on the thought, “where would I go?” reach out to your agent about ‘lease-back options’ and ‘post-closing agreements.’ You may be able to live in your home after closing, until you find your next one. I would not wait to sell until next year, however, because 1) interest rates will eventually go up and decrease the number of buyers in the market, and 2) my magic 8 ball is broken. So. There’s that.

Your free, instant Home Valuation here: HomeValuationzByAnnie.com

Buyers: If you want to take advantage of the current interest rates, but aren’t sure whether or not your credit will allow you to: reach out to lenders (yes, more than one; shop around) ASAP. Inquire about potential credit repair programs to set you on the fast track to the closing table with the best loan. I would not wait until next year because there is no way interest rates are staying as low as they are forever. This market is not for the faint of heart, sure, but do not be scared, be prepared. Have a plan, and a plan B… and maybe a plan C, for where and how your moving; consider renting if crossing state lines, staying with family for 3 – 6 months, or even look into buying a duplex or multi-family home to live in.

If you’re feeling overwhelmed, remember: it is Spring! Take time to soak up the sun and admire the budding life outside, you wont regret it.

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

Follow this Link for Your Copy of the Keefe Real Estate 2020 Annual Market Report

Search for Your Next Home HERE

Get Your Free Property Valuation Here

Sources

Bob Dylan, “The Times They Are a-Changin’.” “The Times They Are A-Changin’ (Fort Nowhere)”. www.youtube.com. 2019-12-12. Retrieved April 24, 2021.

Zielinski, Dan. “Monthly Indicators.” FlexMLS® & Metro MLS®. April 24, 2021.

Simmons, Quintin. “Housing Market Reaches Record-High Home Price and Gains in March.” National Association of REALTORS®. April 22, 2021.

February 2021 Housing Market

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What a difference a year makes! Last February, coronavirus was a soft murmur, not a screaming headline, and the economy was booming… Change may not always be welcome, but it is part of life. Learning how to ‘roll with the punches’ has proven to be a useful skill these past 12 months. February 2021 was a continuation of the most recent trends in the real estate market, with low inventory, but more sales at higher prices.

February 2020 Flashback Quotes:

“Home showings increased substantially in February as a result of current economic conditions,” February 2020 Foot Traffic, by the National Association of REALTORS®.

“Consumers continue to drive economy, forecasts retail sales will grow 3.5 percent to 4.1 percent,” February 2020 Monthly Economic Review, by the National Retail Federation©.

“Fortunately for the U.S. economy, job creation was again strong in January when 225,000 net new payroll jobs were added. We expect the strong foundation for the U.S. consumer sector to keep overall economic momentum positive for the U.S. this year,” February 2020 U.S. Economic Outlook, by Robert A. Dye, Ph.D. and Daniel Sanabria of Comerica.

The Kenosha, Racine and Walworth County Local Market Reports by MetroMLS & ShowingTime, are below, as well as that of my hyper-local, Lake Geneva area market. Throughout Southeastern Wisconsin, there were fewer new listings coming onto the market, but more homes being sold, at higher median sales prices (with the exception of Racine County, which had a slight -1.1% decrease in median sales price) in February 2021, compared to last year. Also, note that we have all seen a drastic decrease in number of days on the market – year to date and year over year.

Notable Reads:

The National Association of REALTORS® released their February 2021 Commercial Market Insights ©, with tons of useful information. Follow the link for the latest!

Why might this be? According to our Monthly Indicators publication, by Dan Zielinski of FlexMLS and Metro MLS, we’re amidst an adjustment period, where the housing market is stabilizing.

Mortgage interest rates ticked a bit higher in February but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability. […]
For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.
Monthly Indicators by Dan Zielinski | Mar 15, 2021 | FlexMLS, Metro MLS

Next, I investigated the difference in showings across our tri-county area, compared to last year, using the Target Market Analysis by ShowingTime®. The more I thought about it, the more sense it made: of course there were technically more showings in February 2020. With our current low inventory, there were simply less homes to see in February 2021. Interestingly enough, you’ll notice an uptick in showings for listings over $600,000 since last year. This is definitely something to pay attention to!

Recent Market Reports:

“More Than 200,000 New Listings Are Missing From U.S. Housing Market,” according to the February 2021 Monthly Housing Market Trends Report, by Sabrina Speianu, Realtor.com®
“After a brief pause, mortgage rates continued their recent rise. Changes by Fannie Mae and Freddie Mac’s overseeing agency will likely make it more expensive to mortgage second homes and investment properties. And consumer optimism is finally showing signs of improvement,” Zillow Market Pulse: March 12, 2021, by Matthew Speakman, © Zillow, Inc.
“U.S. homebuilding dropped to a six-month low in February as severe cold gripped many parts of the country, in a temporary setback for a housing market that remains supported by extremely lean inventories amid strong demand for larger homes,” U.S. housing market takes breather amid bitterly cold weather by © CNBC LLC.

Sellers: It is still a sellers’ market, but we do not know how long it will last. Interest rates have already gone up a little. If interest rates continue to rise, this could negatively affect buyer demand. This is the time to list before anything changes.

Your free, instant Home Valuation here: AnniesHomeValuez.com

Buyers: It is still a good time to buy! Mortgage interest rates are still relatively low, but they have creeped up. This is crunch time, if you want to buy a home in 2021. Have your pre-approval ready to go, before seeing homes. Be flexible, and do your research on comparable home sales.

The silver lining around the past years’ pandemonium has to be the renewed importance of “home.” Clearly, a house is much more than plywood and nails. As more jobs go remote and kids attend school virtually, the more crucial it is to love where you live. If home is where the heart is: have you found yours?

Happy (ALMOST) Spring!

Follow this Link for Your Copy of the Keefe Real Estate 2020 Annual Market Report

Search for Your Next Home HERE

Get Your Free Property Valuation Here

Sources:

February 2020 Foot Traffic, by the National Association of REALTORS®

February 2020 Monthly Economic Review, by the National Retail Federation©

February 2020 U.S. Economic Outlook, by Robert A. Dye, Ph.D. and Daniel Sanabria of Comerica

Local Market Reports by MetroMLS & ShowingTime

Monthly Indicators by Dan Zielinski of FlexMLS, Metro MLS

Target Market Analysis below by ShowingTime®

February 2021 Monthly Housing Market Trends Report, by Sabrina Speianu, Realtor.com®

U.S. housing market takes breather amid bitterly cold weather by © CNBC LLC

Zillow Market Pulse: March 12, 2021, by Matthew Speakman of © Zillow, Inc.

February 2021 Commercial Market Insights ©, by the National Association of REALTORS®

January 2021 Housing Market

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Southeastern Wisconsin’s residential real estate market generally cools down with the temperature. Winter months are often marked by decreased buyer activity, as well as fewer homes entering and leaving the market, as new listings and sold homes, respectively. This winter, however, buyer demand and activity have remained high. While inventory decreased in January 2021, both sales and sales prices were up – Nationally, Regionally and Locally.

Highlights from latest Existing Home Sales Report, by Quintin Simmons, National Association of REALTORS®

Nationally:
- “Existing-home sales rose in January, marking two consecutive months of growth”
- “Total existing-home sales […] increased 0.6% from December to a seasonally-adjusted annual rate of 6.69 million in January.”
- “Sales in total climbed year-over-year, up 23.7% from a year ago (5.41 million in January 2020).”
Regionally:
- “The Midwest inched up 1.9% to an annual rate of 1,570,000 in January, a 22.7% jump from a year ago.”
- “The median price in the Midwest was $227,800, a 14.7% increase from January 2020.”
Notable Quotes:
- “Lawrence Yun, NAR’s chief economist [said,] ‘Sales easily could have been even 20% higher if there had been more inventory and more choices.’ “
- “Whereas much of the economy has suffered due to COVID-19, the housing sector has been one of the few bright spots, according to Yun.”
- “In NAR’s latest quarterly report, released last week, home prices in every tracked U.S. metro area increased during the fourth quarter of 2020.”

Highlights from latest January 2021 Monthly Housing Market Trends Report, by Sabrina Speianu, Realtor.com®

“National inventory declined by 42.6% over last year.”
“Nationally, the typical home spent 76 days on the market in January, 10 days less than the same time last year.”

As far as our local market goes, MetroMLS & FlexMLS had the following to say in the latest release of Market Reports:

January started well for the housing market, with healthy buyer demand and strong market fundamentals. A robust increase in housing starts in December points to an active year for new construction. Still, higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units.
[…] The Mortgage Bankers Association’s January research estimates approximately 2.7 million homeowners with mortgages are currently in forbearance plans. Some of these homes may eventually come to market. But given the strong appreciation in most market segments in recent years, these eventual home sales are likely to be mostly traditional sellers. However, a modest increase in short sales and foreclosures at some point this year would not be surprising.
Market Reports: January 2021 by Dan Zielinski, MetroMLS & FlexMLS

Below are the Local Market Reports, by MetroMLS & ShowingTime, for the tri-county area of Walworth, Kenosha & Racine Counties, as well as my hyper-local market (Lake Geneva – Delavan – Williams Bay municipalities). As you can see, the National and Regional trends mentioned above are also reflected here. We have all seen less New Listings, more Closed Sales, and higher Median Sales Prices – across the board.

Notable Reads:

Check out what Ramsey Solutions predicts will happen in residential real estate this year: Housing Market Forecast 2021: How Hot Will It Be?

For more on the commercial side of the market, read the latest report by National Association of REALTORS®: January 2021 Commercial Real Estate Market Trends and Outlook

Sellers: How do low interest rates, low inventory, and high demand affect you? It means you’re more likely to have more buyers interested in your home, willing to pay higher prices. What are you waiting for!? Take advantage of this sellers’ market while it weighs so heavily in your favor.

Buyers: If you think you’re going to buy a home this year, do yourself a favor and start the process now. Get a hold of your local lender, first, then your realtor. Whether repairing your credit or just updating your pre-approval, cross this bridge first. It is a competitive market out there, and you do not want to leave financing to the last minute – trust me. Once that’s started, have your realtor set you up on an MLS search and check the market, at least once a day. Changes are happening rapidly, as you will see. You can do this! Persistence, Preparedness, and Patience are key!

Did you know: You CAN buy a home if you owe the IRS back taxes. Find out how here: Can You Buy a House if You Owe Taxes? by Credit.com ™, Inc.

If January set any precedent for the year to come, we’re in for quite the ride in 2021. Remember, be proactive, not reactive. As renown British scientist, Charles Darwin, once said, “It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.”

Follow this Link for Your Copy of the Keefe Real Estate 2020 Annual Market Report

Search for Your Next Home HERE

Contact Me for Your Complementary Home Valuation + Strategic Pricing Analysis

Sources:

Existing-Home Sales Tick Up 0.6% in January by Quintin Simmons, National Association of REALTORS®

January 2021 Monthly Housing Market Trends Report: Fewer Options for Buyers as Prices Rise and Sellers Hesitantly Step into 2021 by Sabrina Speianu, Realtor.com ®

Market Reports: January 2021 by Dan Zielinski, MetroMLS & FlexMLS

Local Market Reports by MetroMLS & ShowingTime

Housing Market Forecast 2021: How Hot Will It Be? by Ramsey Solutions

January 2021 Commercial Real Estate Market Trends and Outlook by National Association of REALTORS®

Can You Buy a House if You Owe Taxes? by Credit.com ™, Inc.

December 2020 Housing Market

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& Year-End Review

Typically, December is a slow month for real estate. The holidays and new year are seen as dedicated time to rest and recuperate; less activity allows us all to reflect on the past year and prepare for the next. Not this December, however; 2020 was an anomaly to the very end.

Sabrina Speianu, Sr. Economic Research Analyst for Realtor.com ® said, ” […] December housing data release reveals that home buyers and sellers were much more active this holiday season compared to last year. Home listing prices continued to increase at double-digit rates compared to last year, fueled by buyer demand, which also continued to snap up homes at a rate almost two weeks more quickly than last year.” (December 2020 Monthly Housing Market Trends Report: Number of Homes for Sale Hits a New Low).

Our local metro-Milwaukee area multiple listing service, MetroMLS echoed a similar message in their latest Monthly Indicators release:

December is normally one of the slowest months of the year but strong buyer demand across most segments of the market, buoyed by near-record low interest rates, continue to drive a healthy sales pace in the face of a new wave of COVID-19 infections and a softening jobs market.
[…] With low mortgage rates and strong buyer demand in most market segments, the housing market of early 2021 looks to continue the trends we saw in the second half of 2020. Low inventory and multiple offers on in-demand properties and market segments are likely to remain common while the market waits and hopes for a boost in new construction and a surge in home sellers to help provide more balance to the market.
December 2020 MetroMLS Monthly Indicators

Below are the Local Market Reports, by MetroMLS & ShowingTime, for the tri-county area of Walworth, Kenosha & Racine Counties. You’ll notice double digit percentage increases in new listings AND closed sales for December 2020, compared to December 2019. Median Sales price was also higher, across the board. On a hyper-local level, the Lake Geneva/Williams Bay/Delavan area saw a slight dip in the number of new listings, but also the greatest increase in median sales price — which makes sense!

Finally, I wanted to take a more cumulative look at our tri-county area this year. Using the data from Wisconsin Housing Statistics, by the Wisconsin REALTORS® Association, below you’ll see the Number of Home Sales and Median Sales Price for the Kenosha, Racine & Walworth County areas in 2019 compared to 2020. The pandemic impacted our market, significantly, in April and May. However, we surpassed the number of homes sold, and median sales price, every month from June onward, compared to last year.

Hindsight is 20/20! The numbers are in, and the charts don’t lie. Clearly, 2020 is not 2008, and we’re not having a housing market crash. The global pandemic impacted every corner of the economy, including real estate… but only briefly. Interest rates are low, demand is high, supply is low and prices are trending upward — but most importantly, we’re not imploding. All’s well on the real estate frontier.

Sellers: There are still buyers out there! Buyers that weren’t able to get what they wanted in 2020 are going to stay in the market until interest rates increases – which will eventually happen. Don’t wait to list your home, if you don’t have to. Take advantage of this seller’s market!

Buyers: Interest rates are still low, and prices have seemed to stabilize (see last chart above). If you want to buy a home in 2021, get your ducks in a row — ASAP. Have your realtor set you up with an MLS search, and check out all the active and sold homes in your desired area and price point, often. Call your lender and have your pre-approval ready to go before you start seeing homes. This is a “you snooze, you lose” market, so be prepared.

In sum, bring on 2021! Feel free to reach out and ask if you need anything…

Stay well,

Sources:

December 2020 Monthly Housing Market Trends Report: Number of Homes for Sale Hits a New Low by Sabrina Speianu Sr. Economic Research Analyst Realtor.com®

December 2020 MetroMLS Monthly Indicators by MetroMLS

Local Market Reports by MetroMLS & ShowingTime

Wisconsin Housing Statistics by Wisconsin REALTORS® Association

November 2020 Housing Market

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With the holiday season upon us, we have finally seen a very slight slow down in the housing market, ending last months’ record-breaking five consecutive month-over-month gains. That being said, compared to last year, we’re still on fire, in my opinion. Let’s take a look at the November 2020 market, starting Nationally and narrowing our way down to our hyper-local market.

The NAR (National Association of Realtors) just released their monthly Existing Home Sales report, with the following Key Highlights:

Existing-home sales decreased in November to a seasonally-adjusted annual rate of 6.69 million – down 2.5% from the prior month, but up 25.8% from one year ago.
The median existing-home price was $310,800, 14.6% more than in November 2019.
Total housing inventory declined from the prior month and one year ago to 1.28 million, enough to last 2.3 months at the current sales pace – both record-low figures. Homes typically sold in 21 days.
Existing-Home Sales Decrease 2.5% in November by Quintin Simmons

Under Regional Breakdown, the report also states, “Existing-home sales fell 2.5% in the Midwest to an annual rate of 1,590,000 in November, but up 24.2% from a year ago. The median price in the Midwest was $239,100, a 14.6% increase from November 2019.” We are in line with the national trend, it would appear, but next we’ll see how we fare, specifically in the Tri-County area.

The MetroMLS and ShowingTime, released their November 2020 Monthly Indicators and Local Market Reports recently. Here are a few highlights:

November saw the Dow Jones Industrial Average top 30,000 for the first time, while mortgage rates reached new record lows again. These new records have provided encouragement for buyers to move forward on home purchases, which continued to remain strong overall for the month.
[…]
Showing activity remains higher than the same period a year ago across most of the country, suggesting that strong buyer demand is likely to continue into what is typically the slowest time of year. With inventory remaining constrained in most market segments, sellers continue to benefit from the tight market conditions.
Monthly Indicators by MetroMLS

Kenosha, Racine & Walworth Counties each experienced an increased number of closings/home sales as well we double digit percentage increases in median sales price (November 2020 compared to November 2019). While Kenosha County had a 1.1% decrease in new listings, both Racine and Walworth Counties had more listings in comparison to last year. Year-to-date, we have had less listings but more sales across the tri county area.

Are we slowing down a bit this holiday season? Yes, but not by much! I’m still doing showings and writing offers, taking listing appointments and writing contracts. Christmas is 3 days away! I am in no way complaining! If you are interested in learning more about what NAR has to say about this fast-paced market and where it’s going, I implore you to you read 3 Trends Driving Hyperactivity in the Real Estate Market by Melissa Dittmann Tracey.

Sellers: Buyers are still actively looking, during holiday season. If you are considering selling and think you have time – be aware that rates will eventually go up and demand will lesson. That is just bound to happen. We don’t know when, but change is upon us. Why risk it? List it.

Buyers: If you want to take advantage of the amazing interest rates, but don’t know if you’re ready? Just call a lender and get the ball rolling (email me if you want my list of preferred lenders). We do not know when interest rates will go up, just that they will eventually go up. My suggestion is to find out where you are currently, asap; knowledge is power!

Please have a safe and happy holiday season, and remember: Flexibility is security! Feel free to reach out and ask if you need anything.

Stay well,

Sources:

Existing-Home Sales Decrease 2.5% in November by Quintin Simmons

Monthly Indicators by MetroMLS

Local Market Reports by MetroMLS & ShowingTime

3 Trends Driving Hyperactivity in the Real Estate Market by Melissa Dittmann Tracey

October 2020 Housing Market

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The first full month of Autumn continued the record breaking trends of this unprecedented year. From the Country-wide outlook, down to our narrow Southeastern Wisconsin vantage point, October 2020 was a profitable month for real estate.

Existing-home sales continued to trend upward in October, marking five consecutive months of month-over-month gains, according to the National Association of Realtors®. All four major regions reported both month-over-month and year-over-year growth, with the Midwest experiencing the greatest monthly increases.”
Quintin Simmons, NAR

The Metro-Milwaukee Multiple Listing Service, aka MetroMLS, elaborated on this atypically active market.

October continued to be busier than the calendar normally suggests. Buyer activity remains higher than normal for this time of year, while in many segments of the market housing supply remains much lower than one year ago. Multiple offers remain a common occurrence in many areas, keeping housing hot while the temperatures continue to fall.
New Listings in the Milwaukee region increased 9.1 percent to 2,068. Pending Sales were down 42.1 percent to 872. Inventory levels fell 5.4 percent to 3,535 units.
Prices continued to gain traction. The Median Sales Price increased 10.2 percent to $255,000. Days on Market was down 28.6 percent to 25 days. Sellers were encouraged as Months’ Supply of Inventory was down 4.3 percent to 2.2 months.
Mortgage rates dropped to new record lows again in October, helping to offset the monthly mortgage payment increases caused by the rise in home prices seen in many segments of the market across the country. While prices often dip a bit in the winter months, continued buyer demand may temper any price retreats this year.
Monthly Indicators by MetroMLS

The Local Market Reports below, created by MetroMLS & ShowingTime, back up these claims with real numbers. Clearly, October 2020 was one for the books. While the number of new listings in Kenosha County were down, in comparison to 2019, there were more new listings for both Walworth and Racine Counties. Regardless, the tri-county area (Walworth Kenosha & Racine Counties) saw double digit percentage increases in closed sales and median sales prices.

Personally, I had several closings that initially went under contract at the end of summer (August/September), and one quick close. Typically, once school starts, the number of buyers requesting showings substantially decreases, but not so much this year. Yes, I am technically less active than I was in say July, but this market has remained competitive, long past the normal time frame.

Sellers: I implore you to investigate for yourself. Look at the statistics, you can find them everywhere: it is an exceptional sellers market. Assess your long term goals and act accordingly, because no one knows how much longer the housing market will remain so heavily in your favor. Specifically, as we head into Thanksgiving and Christmas seasons, be aware that #1: nothing is more welcoming than a home decorated for the holidays, and #2: the buyers that are still looking right now are very serious.

Buyers: there are more of you actively looking to purchase real estate right now; be prepared to offer your ‘highest and best,’ but stay firm in your financial morals. If you feel more comfortable having a financing contingency and a home inspection, then include them in your offer–whether or not your offer is accepted, you still have to sleep at night.

One truth that remains forever true: holiday season means the year is almost over. This year has been full of lessons, but my biggest take away was: preparedness. Having goals and strategies are essential to financial health, but real security is only achievable by flexibility. Feel free to reach out and ask if you need anything. Stay well,

Sources:

Existing-Home Sales Jump 4.3% to 6.85 Million in October by Quintin Simmons of NAR

Monthly Indicators by MetroMLS

Local Market Reports by MetroMLS & ShowingTime

September 2020 Housing Market

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What a year it has been. September 2020 showed continued strength in the real estate market, despite the pandemic. The MetroMLS released their ‘Monthly Indicators,’ this past week with positive news.

Strong buyer activity has continued into the fall, which is normally the start of the seasonal slowing of the housing market. With stronger buyer activity in the market this year and the continued constrained supply of homes for sale, speedy sales and multiple offers are likely to remain a common occurrence and will keep the housing market hot even when the weather is cooling.
[…]
While mortgage rates remain near record lows, The Mortgage Bankers Association reports that lending standards are tightening, which makes it a bit more difficult for some buyers to qualify. At the same time, unemployment remains substantially higher than a year ago due to COVID-19. Despite all this, buyers are out in full force this fall, showing amazing resilience in the middle of
a pandemic.
Monthly Indicators by MetroMLS

In our hyper-local market, of Kenosha, Racine & Walworth Counties, all our numbers were up in September 2020, compared to September 2019. Increased median sales price, more new listings, and more sales. Below are the ‘Local Market Reports‘ by MetroMLS & ShowingTime.

Nationally, in regards to last month’s market, Realtor.com stated,

“Homes are sold at an increasingly fast pace when compared to last year, and prices remain at all-time-highs into September. Inventory continues to be constrained by stronger than normal buyer demand and little new inventory.”
September 2020 Monthly Housing Market Trends Report: Heightened Summer Housing Market Activity Spilling Over into Fall by Realtor.com

Overall, like last month, I’ve been on more showings and written more offers per buyer accepted offer, in September. I see new listing after new listing go under contract within days of hitting the market, later in the year than I am used to seeing, as well.

My message to all is to stay in tune with this evolving market. More jobs are going remote than ever before, which means more city-folk are moving country-side. This means competition and higher housing prices. Sellers: be aware that increased demand and bidding wars may lead to local buyers stepping out of the market soon. If demand decreases, prices will follow suit; if you want to list your home, do so before the holidays. Buyers: interest rates are still low, but you will need to be ready to act, and prepared to compete, when the right home hits the market. Get your pre-approval now, and check on the inventory in your local market often. Don’t hesitate to reach out and ask for an MLS search update.

Sources:

September 2020 Monthly Housing Market Trends Report: Heightened Summer Housing Market Activity Spilling Over into Fall by Realtor.com

Monthly Indicators by MetroMLS

Local Market Reports by MetroMLS & ShowingTime

August 2020 Housing Market Update

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The hot summer market continued to sizzle last month, in our hyper-local market, the state of Wisconsin, and Nationally.

According to the National Association of REALTORS®,

“Existing-home sales continued to climb in August, marking three consecutive months of positive sales gains, according to the National Association of Realtors®. Each of the four major regions experienced both month-over-month and year-over-year growth […]”
Existing Home Sales Report by National Association of REALTORS®

The MetroMLS echoed this positive message for the Metro-Milwaukee area, within which I reside and work, for last month.

“The housing and stock markets continue to be the leaders in the economy. In August, showings remained at strong levels while housing inventory remained limited, continuing the competitive bidding market we have seen in recent months. With the stock indexes at or near record highs as mortgage rates remain near record lows, signs point to a busy fall housing market.
[…]
Prices continued to gain traction. The Median Sales Price increased by 12.4% to $281,080. Days on Market remained flat at 28 days. Buyers felt empowered as Months Supply of Inventory was up 20.8% to 2.9 months. As we look towards the fall, we usually see housing activity slow down as the back-to-school season begins. But, this year is far from normal. While uncertainty remains on what effects the upcoming elections and any seasonal resurgence of COVID-19 may have on the financial and housing markets, the healthy housing demand we see today will create significant tailwinds in the near term”
Monthly Indicators by MetroMLS

Finally, as far as market reports go, the Wisconsin REALTORS® Association had similar things to say in regards to August home sales, in our tri-county area of Kenosha, Racine and Walworth Counties.

“According to the monthly WRA home sales report that was released on September 21 , a new three-month record for the most Wisconsin home sales ever was set in the months of June, July and August.
In Walworth County, the number of home sales in August 2020 was 4.1% lower than in August of last year, while the median home sale price increased by 7.9%. Through the first eight months of 2020, the number of home sales in Walworth County is down by 3.9% compared to the first eight months of last year, while the year-to-date median home sale price is up by 11.1%.
In Racine County, the number of home sales in August 2020 was 4.4% higher than in August of last year, while the median home sale price increased by 18.4%. Through the first eight months of 2020, the number of home sales in Racine County is down by 0.9% compared to the first eight months of last year, while the year-to-date median home sale price is up by 8.9%.
In Kenosha County, the number of home sales in August 2020 was 2.9% lower than in August of last year, while the median home sale price increased by 13.0%. Through the first eight months of 2020, the number of home sales in Kenosha County is down by 2.5% compared to the first eight months of last year, while the year-to-date median home sale price is up by 7.4%. […]
Wisconsin Housing Market Records Record Sales for Summer by Wisconsin REALTORS® Association

Why are we seeing positive things come out of a market in the midst of a pandemic? One of the major contributors is mortgage interest rates for home loans.

“The all-time low for mortgage rates was set in mid-September, averaging just 2.86%. With record-low mortgage rates, prospective home buyers can significantly decrease their borrowing costs.”
Mortgage Rates Edge Up, Still Near Record Lows by National Association of REALTORS®

Another noteworthy contributor to this uptick in the real estate market is our decreasing unemployment rate.

“In Walworth County, the unemployment rate dropped from 6.6% in July, to 5.4% in August. These figures compare favorably to the national unemployment rate, which was 8.4% in August […]”
The State of Wisconsin’s Department of Workforce Development report

Overall, it has been one heck of a summer. Personally, I have experienced incredibly high buyer demand and frustratingly low inventory. This has resulted in many more offers written compared to offers accepted. More than once, I have had buyers be outbid by cash offers with a quick closing date more often than I am used to. It also meant I took the same buyer out on more showings than it usually takes to get them under contract. I’ve experienced many pre-listing appointments where the potential seller is “just curious,” and/or folks that want to “wait to see what happens,” with the market, the economy, and the country overall. Lastly, I’ve seen new listings go under contract within DAYS of hitting the market, and upwards of 10 showings the first day or two of listing.

All things considered, my message is very similar to last month. Buyers, if you are at all serious about purchasing a home, you must be ready to jump. Get your pre-approval ready to go, and check your MLS search frequently; when the right home comes onto the market, you will have to get in there ASAP or you’ll miss out. Sellers, the lack of inventory means when your home is listed, you better be ready to move; it is very likely that your home will sell quickly.

Sources:

Existing Home Sales Report by National Association of REALTORS®

Monthly Indicators by MetroMLS

Wisconsin Housing Market Records Record Sales for Summer by Wisconsin REALTORS® Association

Mortgage Rates Edge Up, Still Near Record Lows by National Association of REALTORS®

Mortgage Rates Edge Up, Still Near Record Lows by National Association of REALTORS®

The State of Wisconsin’s Department of Workforce Development report

July 2020 Housing Market Update

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Wow! The July real estate market came in with a bang and left with a boom (and I don’t just mean the Independence Day fireworks, although those were astounding). If you thought we were setting ourselves up for failure, by comparing this year to last year, given the fact that 2019 was such a good year for real estate and the overall economy: you were wrong. The housing market in July 2020 was actually BETTER, year over year, in more ways than one!

The WRA recently published: July 2020 Home Sales Report: Record July Home Sales Push Prices Up. Specifically, stated, “Wisconsin’s existing home sales hit a new record for the month of July, which increased prices by double digits, according to the most recent monthly analysis of the state housing market by the Wisconsin REALTORS^® Association (WRA). Sales of existing homes rose 7.6% in July relative to that same month in 2019, and the median price rose to $226,400, which is 10.4% higher than July 2019. On a year-to-date basis, sales are now only slightly lower than this time last year, with sales in the first seven months of 2020 just 1.9% below the same period of 2019, and prices are up 8.4% to $213,000.”

In this month’s edition of Market Reports, by Metro MLS, they elaborated on this trend.

Healthy buyer demand and constrained supply continue to be the story for much of the country. Nationally, showing activity in July remained substantially higher than a year before and multiple offer situations are a frequent experience in many markets. With the inventory of homes for sale still constrained, a competitive market for buyers shows little sign of waning.
[…]
While the number of unemployment insurance weekly initial claims have been far lower in recent weeks than their peak in March and April, more than 1 million new claims are still being filed each week and more 31 million were claiming benefits in all programs as of early July, compared to fewer than 2 million in July 2019. Despite this significant economic impact, home buyers remain extremely resilient. With mortgage rates remaining near record-low levels and home purchase mortgage applications up from a year ago, high buyer activity is expected to continue into the late summer and early fall market
Current as of August 10, 2020. All data from Metro MLS. Report © 2020 ShowingTime

Specifically, when we look at the charts below for Kenosha, Racine & Walworth Counties, as well as the hyperlocal market within which I work mostly, Lake Geneva – Delavan – Williams Bay, you’ll see these jumps in productivity specifically. The tri-county area had more sales July 2020 compared to July 2019 across the board!!! Each individual county was still down in new listings, but my local market went up. Finally, aside from Kenosha County, median sales price also went up in the month of July.

What is this saying overall? I believe we are seeing an influx of city-folk moving out to their favorite rural vacation destination full-time, given how many businesses have switched to remote function. I do not see this trend lasting forever. Listen up Potential Sellers: this is the hottest sellers market in recent history and we do not know exactly how long it will last, but only that it will not last forever!!! Potential Buyers: interest rates are at historic lows! Again: we do not know for how long only that it will not be like this forever.

July has come to pass; enjoy summer while it lasts. Don’t forget to stop and smell the roses, as few and far between as they may seem.

My July bloomed with accepted offers, vegetables from my dad’s garden, and funny memes.

Sources:

July 2020 Home Sales Report: Record July Home Sales Push Prices Up

June 2020 Housing Market

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Here in Wisconsin, the month of June represents carefree summertime livin’: grilled food, festivals, long holiday weekends, and plenty of sunshine. June 2020, however, was marked by civil rights protests against police brutality, violence, job loss, business closures, and month FOUR of this COVID-19 plague. During difficult times, I hold on by committing myself to find the silver lining. More than ever, having a home to stay in, for safety’s sake, is of the utmost importance.

In an article by Matthew Speakman of Zillow called, “June Existing Home Sales: Making Up For Lost Time” the national statistics for the month of June were layed out:

June existing home sales rose 20.7% from May to 4.72 million (SAAR), according to the National Association of Realtors, the largest ever one-month increase in the series’ history. Sales were down 11.3% from June 2019.
The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400).
Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May and down 18.2% from one year ago.
By Matthew Speakman on Jul. 22, 2020

You read that correct: the percentage increase in home sales from May to June 2020 broke records. There were also more homes listed in June (compared to May 2020). In comparison to last year, the median sales price is higher, but there are less new listings. One might take this to mean that nationally, the real estate market is improving overall, and maybe the worst is behind us.

Locally, the metro-Milwaukee Multiple Listing Service said the following about the Southeastern Wisconsin June market in their Monthly Indicators:

“While much of the country was working on a phased reopening of the economy
in June, real estate activity continued to strengthen as well. Nationally, June
showing activity as tracked by ShowingTime was up notably from the COVID-19
depressed levels in recent months but was also up from June 2019, reflecting
pent-up demand by prospective home buyers.
[…] While buyer activity continues to be robust, seller activity continues to be a bit
softer, with fewer homes being listed for sale than a year ago. Many housing
experts believe sellers remain reluctant to list their homes due to continued
concerns over COVID-19, which was beginning to see a resurgence in June.
Until sellers regain confidence, housing inventory will continue to be constrained
during what is expected to be an active summer selling season.”
All data from Metro MLS. Report © 2020 ShowingTime.

The local market analyses below are for the Counties of Racine, Kenosha & Walworth, plus one for the Lake Geneva – Delavan – Williams Bay Area. Personally working mainly in Walworth County, I have seen buyers demand skyrocket. Meanwhile, potential sellers are ‘waiting to see what happens.’ Not all of them, I had some new listings. At the start of this pandemic, several people told me they anticipated home values soon – which is incorrect. Clearly, they were wrong! As the basic business principal of supply-and-demand implies: with more demand (from buyers), prices (for homes/sellers) go up, not down.

Thinking of buying or investing in real estate? Call a lender asap. Work on your credit score even! At the end of the day, if a home is accurately priced and in decent shape, the home will go under contract fast.

Ready to sell your home? I would find a place you can stay before you list. An empty home always sells faster. Also, get your market analysis, even if you want to wait to sell, just for frame of reference.

Stay positive, stay healthy & reach out! ❤ , Annie Z.

June 2020 in photos