May 2021 Housing Market Update

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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.

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,

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 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

The Impact of COVID-19 on Local Real Estate Practices

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Yesterday, Gov. Tony Evers issued an emergency order called “Safer at Home” in which Wisconsinites are instructed to remain at home with the intention to stop the spread of coronavirus, aka COVID-19, from 8:00 am Wednesday, March 25th until 8:00 am Friday, April 24th.

follow this link to read the full order by the Wisconsin Governor: Order #12: Safer At Home

Local businesses are to remain closed for the next 30 days, unless they’re considered an “essential service.” Thankfully real estate was declared essential, as were many businesses that support and serve our industry. However, the way we practice and participate in real estate transactions has transformed.

follow this link to see a full list of essential businesses here’s the full list of business allow to continue operations, although most with new restrictions, read the Wisconsin Economic Development Corporation © 2020 article here

REALTORS® and their clients may still conduct the activities necessary to buy and sell real estate in Wisconsin during the time period covered by the order as long as they comply with the social distancing and other requirements in the order.

Michael Theo President & CEO of Wisconsin REALTORS® Association

Conversely, while I and my fellow realtors are allowed to work, we are NOT required to. This is a HIGHLY contagious, and sometimes deadly, virus. We must continue to work remotely (while accessible, if necessary, we cannot work out of our office), maintain social distancing from others (6+ feet), wear PPE when going to public places, wash your hands/use hand sanitizer.


Restrictions, Options & Opportunities for

Sellers and Buyers

Showings

Real estate agents are being told by all sources (“Safer at home,” the WRA, NAR, and brokerages) to do work from home (instead of office). There are no more open houses, but virtual showings/tours are highly encouraged. When we go do out, we’re still supposed to follow ‘social distancing,’ and CDC prevention guidelines.

Be aware: some sellers are being forced to self-quarantine: you must protect yourself as well. This virus can live on surfaces, and they may not know whether or not their COVID-19 positive.

Buyers:

If you have a pre-approval from a lender, and have a secure job (not at risk for losing your job), continue to look online. Any new listings are likely serious sellers, whether trying to cut losses in the stock market by selling second homes, or moving). Write contracts with deadlines pushed further out. VA and even some FHA buyers (with jobs in “essential businesses”) are very secure in that they are government vs. mortgage broker backed.

Please note: President Trump did not cut mortgage interest rates to 0%, but rather treasure rates.

Sellers:

You can require virtual tours only. Of course, you could also pull the property off of market until the pandemic ends. We’ve been told to do virtual open houses, and to not open the open house to the public.

Please note: if you do not want to sell your home, you could look into refinancing your home loan given the recent cut in interest rates (not mortgage rates). ** I have heard from a couple folks that it took longer than normal to hear back from their lender, the refinancing process may take some time. If you decide to refinance, lock in your rate.

Under Contract

If you’re currently under contract, expect delays from loan processors, home inspectors, loan appraisers, and even the title company (due to register of deeds closing). Lenders are still up and running, just working from home, writing pre-approvals using today’s interest rate (I’d give you that % but I am not a lender – regulation Z), however, market instability causes mortgage rates to constantly change, plus they’re overwhelmed with the sheer volume of people re-financing their existing home.


Wishing you and yours a safe and healthy weekend. Have a great Weekend in Wisco! ❤ , Annie Z.

ANNIE ZAMBITO
LICENSED REAL ESTATE AGENT    |    KEEFE REAL ESTATE
PHONE 262.348.3253   |   262.215.1982
EMAIL azambito@keeferealestate.com  |  anniezrealty@gmail.com



During this time of pandemic panic, it is crucial to stay properly informed. THE source of accurate information, prevention and treatment of the corona virus can be found on the Centers for Disease Control and Prevention website.


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