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March 2017
We can comfortably consider the first quarter to have been a good start for
residential real estate in 2017. There was certainly plenty to worry over when the
year began. Aside from new national leadership in Washington, DC, and the
policy shifts that can occur during such transitions, there was also the matter of
continuous low housing supply, steadily rising mortgage rates and everincreasing
home prices. Nevertheless, sales have held their own in year-overyear
comparisons and should improve during the busiest months of the real
estate sales cycle.
New Listings in the Milwaukee region increased 2.3 percent to 2,565. Pending
Sales were down 49.4 percent to 901. Inventory levels fell 4.7 percent to 5,486
units.
Prices continued to gain traction. The Median Sales Price increased 8.9 percent
to $192,500. Days on Market was down 22.7 percent to 68 days. Sellers were
encouraged as Months Supply of Inventory was down 5.3 percent to 3.6
months.
The U.S. economy has improved for several quarters in a row, which has helped
wage growth and retail consumption increase in year-over-year comparisons.
Couple that with an unemployment rate that has been holding steady or
dropping both nationally and in many localities, and consumer confidence is on
the rise. As the economy improves, home sales tend to go up. It isn't much
more complex than that right now. Rising mortgage rates could slow growth
eventually, but rate increases should be thought of as little more than a
byproduct of a stronger economy and stronger demand.
All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by 10K Research and Marketing. You can follow this link:
Metro MLS Market Updates
or visit
www.metromls.com
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