March Home Sales Down Compared To Last Year

First quarter home sales are down in Wisconsin compared with same period last year. Nevertheless, home prices are up and economists are optimistic that 2014 will see a stronger housing market in the state.

Neither economists nor the Wisconsin Realtor’s Association seem overly concerned that home sales dropped by more than 11 percent this March compared with March of 2013. Dave Clark, a professor of economics at Marquette University, says weather plays a big role in the housing market, and with a tough winter he’s not alarmed by the decrease.

“What will be interesting is to see what happens when we get into the real heart of the home-selling market in Wisconsin, which is May, June, July and August,” said Clark.

Home prices have not decreased, though. Statewide, the median price increased to more than $136,000, up nearly 2 percent compared to the same time last year. Clark says factors playing into that may include fewer properties on the market in some parts of the state. Also, he says modest improvements in the economy and a dropping unemployment rate bode well.

“The combination of those things, they do tend to put upward pressure on those prices and we’ve seen prices, statewide, increasing since March of 2012,” said Clark.

Overall, Clark says he’s cautiously optimistic that Wisconsin’s housing market will continue to recover from the collapse in 2008.

“The summer ought to shape up to be a relatively solid market,” he said. “Whether it will hit the levels of last year, that remains to be seen.”

In 2013, home sales jumped by 10 percent statewide, with average home prices going up by 6 percent.