Improvement

For the first decade of the new century, home prices in the 4-county Metropolitan Milwaukee area increased 25%; averaging $181,288 in 2000 to $226,301 in 2010.  In the 7-county Southeastern Wisconsin area, average sales price increased by 26%; going from $165,814 in 2000 to $208,391 in 2010.

Over the longer-term, we expect the Southeastern Wisconsin real estate market to gradually improve.  The current market dynamics consisting of low mortgage rates, ample inventory of homes, and reduced prices will be a major incentive to home buyers currently sitting on the sidelines.  Additionally, beginning in 2011 the demographic wave of Generation Y buyers hitting the market will provide an extra boost to the market for years to come

This week's key fact to understand about today’s market:
  

Other home-price measurements also are showing price stabilization.

Per Trulia

Per Trulia-Average price per square foot for Milwaukee WI was $79, a decrease of 13.2% compared to the same period last year. The median sales price for homes in Milwaukee WI for Sep 10 to Nov 10 was $96,318 based on 923 home sales. Compared to the same period one year ago, the median home sales price decreased 14.3%, or $16,037, and the number of home sales decreased 35.9%. There are currently 3,150 resale and new homes in Milwaukee on Trulia, including 5 open houses, as well as 4,896 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Milwaukee WI was $174,752 for the week ending Dec 15, which represents a decrease of 2.7%, or $4,773, compared to the prior week. Popular neighborhoods in Milwaukee include Bay View and Lower East Side, with average listing prices of $165,824 and $241,297.

What's happening to prices in this new year?

We are seeing gas price start to creep up. Economists are saying $4.00 maybe even $5.00 per gallon is feasible. In the past, large long-term gas price increases have increased local metro Milwaukee home and condo sales as well as reduced outer metro Milwaukee home sales. Will or could this help the downtown Milwaukee Condo market? Between the improving economy, past over building but nothing new on the market and increase gas prices, I believe our condo market will start showing signs of stabilizing and improved sales over the next 2-3 years. Remember it isn't the pricing that is hurting the market it is the lack of buyers.

This week's key fact to understand about today’s market:

The national median-home price is stabilizing.