Sales of existing homes in Wisconsin rose slightly in August from the same month a year ago, capping off what real estate professionals say was a good summer selling season.
The only thing holding it back from being even better was a short supply of houses on the market in sought-after locations, they said.
The Wisconsin Realtors Association said Monday that there were closings on 8,512 homes in the state last month, about 0.6% more than 8,464 in August 2016. That was the highest August sales mark since at least 2005, when the state Realtors organization recalibrated its data collection methods.
At the same time, the median prices of houses sold in Wisconsin went up 7.1% for August, to $182,000 from $170,000.
"The traditional summer housing market typically starts in May and runs through August, and this year was a good summer for home sales," Peter Sveum, new chairman of the Wisconsin Realtors Association board, said in a statement. "But sales would have been even stronger if we had more homes available for sale."
Realtors said the inventory problem that hindered sales all year continued in August. With 38,640 homes available for sale in the state, the number of properties on the market was 14.8% lower than August 2016.
"The real challenge continues to be in the cities, where inventories are really tight," said Sveum, who is broker-owner of Coldwell Banker Success in Stoughton.
Through the first eight months of 2017, statewide sales were 0.3% above the same period in 2016, at 55,588 from 55,431.
The median price of homes sold through August this year was $174,900, or 6.1% higher than $164,900 during the first eight months of 2016.
Michael Theo, president and chief executive of the Wisconsin Realtors Association, said the state's strong economy has helped push home prices up at a rate above inflation.
"Sellers can get top dollar for their homes when they list them; and quality properties, especially those in the cities, will move quickly once they are listed," Theo said.
Theo said housing prices follow a regular seasonal pattern, heating up in the summer and moderating heading into the fall and winter months.
"Buyers can find good opportunities if they are willing to purchase outside the peak market times," Theo said.
The state Realtors said August sales in southeastern Wisconsin fell 1.6% to 3,000 from 3,048 a year ago, but the median price jumped 5.4%, to $195,000 from $185,000.
A separate report on new-home construction showed the Milwaukee area was the only one of the five biggest metro areas in the state to have fewer building permits this year than in 2016. Through August, 938 home construction permits had been issued in the four-county Milwaukee area, down 3.4% from 971 in the first eight months of 2016, according to MTD Marketing Services of Wisconsin Inc.
Through August, home construction permits were up 2.1% in Dane County, to 862 from 844, while rising 31.1% in the Green Bay-Door County market, to 544 from 415. In the Fox Valley, permits increased 7% to 553 from 517, while climbing 28% in the Racine-Kenosha area to 462 from 361, the MTD data shows.
Another report Monday indicates U.S. homebuilders are feeling less optimistic about their sales prospects, reflecting concerns that rebuilding efforts following hurricanes Harvey and Irma will drive up costs for construction labor and materials.
Even so, builders' overall view of the new-home market remains positive. The National Association of Home Builders/Wells Fargo builder sentiment index released Monday slipped to 64 this month. That's down three points from a downwardly revised reading of 67 in August. Readings above 50 indicate more builders view sales conditions as good rather than poor. The index has been above 60 since September last year.
