Home sales jumped 24.3% in November in the 4-county metropolitan area, marking the 5th month in a row that sales have increased. The increase represents 968 sales compared to 779 a year ago.
Although 968 sales in November was decent for a late-fall month, the statistical leap is primarily due to the contrast between the 2010 and 2011 markets. We saw a large fall-off in sales beginning in June of 2010 that continued through the rest of the year, due to the expiration of federal tax credits.
A significant change in the market did occur, however, on the listing side that may have an impact on sales prices in the coming months. Listings of new homes for sale have been down 10 of the last 12 months, meaning the pie of available homes to buy is shrinking. May and June were the only months in which listings were above the same point in 2010. The rest of the time we had fewer people attempting to sell their home than the year before.
This is a noteworthy development because some sellers are deciding to wait and see when the market improves before putting their home up for sale. This is a positive development in the current market because it allows those who are selling to capture more attention from buyers as prices continue to stabilize.
With a shrinking pool of available properties, the price REALTORS® recommend to their clients may firm up.
County-by-County Sales Analysis:
Source: The Greater Milwaukee Association of Realtors