May 2021 Housing Market Update

Featured

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.

January 2021 Housing Market

Featured

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


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:

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.