July home sales increase 4.7% in spite of short inventory in metro Milwaukee

Many people seeking their first house persevered amid a shortage of inventory and found a property they liked, helping to boost July home sales by 4.7 percent in metro Milwaukee — the only time this summer that monthly sales were up from a year ago.

Jumps in sales in Milwaukee and Waukesha counties drove July closings on properties in the four-county metro area, which also includes Washington and Ozaukee counties.

The Greater Milwaukee Association of Realtors reported 1,198 closings in Milwaukee County in July, compared with 1,118 in July 2017, or a 7.2 percent gain. In Waukesha County, 663 closings were recorded, up 5.7 percent from 627.

July sales slipped 6.9 percent in Washington County, to 188 from 202, and 3 percent in Ozaukee County, to 131 from 135.

Through the first seven months of 2018, total sales in the four-county area increased 1.5 percent, to 12,264 from 12,083.

"The strength of the current metropolitan real estate market is an extension of the post-recessionary market that began in early 2015," Mike Ruzicka, president of the Greater Milwaukee Association of Realtors, said in his monthly report. "Much of the market's power is fueled by the influx of first-time buyers — accounting for approximately 40 percent of the market — historically low interest rates and a strong regional job market."

Ruzicka said that generally, first-time buyers are younger and looking for an affordable, introductory home priced under $300,0000.

In the metro area, homes priced at less than $300,000 accounted for 70 percent of homes sold in July. More than two-thirds were purchased after being on the market fewer than 30 days. 

The shortage of homes for sale has driven up prices. The local Realtors organization posts average prices quarterly, so there is no data available yet for July. However, through June, the average home price was up 5.2 percent in Milwaukee County, to $184,903 from $175,731 at the same time a year earlier. 

Other average price gains: Ozaukee County, 11.9 percent, to $354,452 from $316,843; Washington County, 14.5 percent, to $261,931 from $228,794; and Waukesha County, 3 percent, to $327,182 from $317,570.