Stability driven by first time buyers
First-time home buyers were the engines that drove the Waukesha County real estate market in 2009.
By all accounts, the number of homes sold appears to be stabilizing. However, much of the activity has been in the lower price and can be tied to the $8,000 first-time buyer tax credit.
In 2008, there were 2,933 Waukesha County homes priced above $100,000 sold through MLS. That figure in 2009 was 2,901. That modest 1 percent decline looks awfully good when compared to the 22 percent drop in the number of homes sold between 2007 and 2008.
By all indications the first-time homebuyer credit had a big impact on the Waukesha County marketplace. Sales of homes priced between 100,000 and $199,999 were up a whopping 30 percent in 2009. Sellers in this price range saw more activity with many homes selling quickly at or near the asking price.
That impressive surge was offset by a 42 percent decline for homes priced between $600,000 and $750,000. The drop in activity here can be attributed, in large part, to the lack of transferees in the marketplace.
The 44 sales in this price range in 2009 pales in comparison to the 135 sold in 2007. That’s a two-thirds drop in sales volume in only two years. It would take all the talents of Ken Lay and Bernie Madoff to make those sales numbers look good.
Let’s hope 2010 sees further stabilization and at all price points. If that were to happen, then we could say we are in full recovery.
Posted by:
Steve Bauman
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