MSNBC: Existing-home sales post surprising 5.1% gain - Sales activity remains slow, but plunging prices draw in first-time buyers
According to the Associated Press (AP), sales of existing homes spiked in February by the largest amount in nearly six years. Who do we have to thank?
The answer is first-time homebuyers. This demographic have plenty of inventory to choose from. Many are taking advantage of homes that are selling for a deep discount (e.g. foreclosed homes, short sales, etc.).
Despite the increase in sales of existing homes, prices will continue to remain affordable.
On April 13 Paul Gores of the Milwaukee Journal Sentinel wrote an article that suggested that home prices in Metro Milwaukee have declined to match 2005 levels. I think many who follow real estate trends knew that housing prices have declined during the past year or two. As with any investment, prices rise and fall due to changing economic conditions. Prices rise and fall based on supply and demand.
According to the Mandel Group of Milwaukee, we currently have a two-year supply of downtown condos. In comparison, a healthy downtown market would have approximately a one-year supply. This means that if all of the prospective sellers were to wait to enter the market, it would still take us approximately two years to sell off our current inventory levels.
Our downtown supply has dried up in recent months because several downtown projects have been canceled. These canceled projects should hold our current housing prices in check. We’re not going to see a huge spike in prices this year due to the amount of bank-owned properties or properties under foreclosure, short sales, and transactions involving relocation companies. All of these transactions will impact the salability and marketability of real estate in any sub-market.
Economists feel that the large number of foreclosed homes will keep housing prices in check. Many of these bank-owned properties are not even on the market.
Those analysts who buy into the “doom-and-gloom” suggest that buyers will remain on the sidelines as the economy continues to show signs of deterioration and the unemployment rate increases.
I agree that the $8,000 income tax credit for first-time homebuyers isn’t enough. I agree that if you are worried about the health of your career, you will not be in the market for a home this year regardless of how much free money is being offered.
Have we hit the bottom? I don’t know. During the past two years, housing prices have declined throughout Metro Milwaukee. I feel that prices will stabilize in 2009 as new construction projects are cancelled. Despite the decline in housing prices, I am witnessing more and more activity within the downtown Milwaukee condo market in recent weeks. I would be much more scared about the health of the real estate market if activity levels remain down. Slow sales generally lead to further price declines.
I anticipate that sales will continue to show signs of improvement through the early weeks of summer. I also anticipate that existing home sales will increase at a faster pace as we approach August, September, and October. During this three-month period, we will witness all of the procrastinators who will jump into the real estate market shortly before the $8,000 tax credit expires.
For your information, the $8,000 tax credit applies for those transactions that close no later than December 1, 2009. Therefore, I am and will be encouraging all of my buyers to write their offers and have them accepted no later than the end of October. Most deals close within 25-30 days from the date of acceptance.
The AP and MSNBC provide more details regarding the health of the current housing market and the impact bank-owned properties have on the market. Click here to read more about the current housing market>>>
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Labels: Economy
Downtown Milwaukee Events – Through May 31, 2009
BUSINESS EVENTS
Apr 16 - Career Cafe: Marketing Yourself in an Economic Downturn - Milwaukee Art Museum
Apr 16 - On the Grapevine for Human Resources - Bacchus
Apr 17 - Basics of LinkedIn - Milwaukee Athletic Club
Apr 17 - Advanced Selling with Linked In - Milwaukee Athletic Club
CLASSES & WORKSHOPS
Apr 15-16 - Prairie Chicken Viewing - Buena Vista Marsh - Urban Ecology Center
Apr 21 - Paths to a Sustainable Future - Urban Ecology Center
Apr 22 - Museum of Beer and Brewing Home Brew Demonstration - Libiamo
Apr 24 - Milwaukee Wine School: Chocolate & Wine - Bacchus
Apr 30 - Ornithology Workshops - Urban Ecology Center
Thru May 19 - Spring Garden Series with Melinda Myers - Discovery World
COMEDY
Apr 17 - Rodney Carrington - The Riverside
Apr 18 - Louis CK - The Pabst Theater
Apr 25 - Sinbad - The Pabst Theater
May 10 - Mothers Day Laugh-a-Thon - The Riverside
May 16 - Jimmy Fallon - The Pabst Theater
May 17 - Todd Barry - Turner Hall Ballroom
DANCE
Apr 24-26 - The Wide Sky Is Falling! - Danceworks Studio Theater
DINING
Apr 16 - Vegetarian Potluck - Urban Ecology Center
Apr 17 - High Roller's Table - Bacchus
Thru May 9 - Celebrated Chef Series: Cooking Class - Mason Street Grill
FAMILY EVENTS
Apr 24 - Money Minder Workshop - Betty Brinn Children's Museum
May 5-6 - Cirque Dreams: Jungle Fantasy - The Milwaukee Theatre
May 9 - Mad Hot Ballroom & Tap Competition - Bradley Center
Thru May 31 - Smokey Bear & Woodsy Owl: Home Sweet Home Exhibit - Betty Brinn Children's Museum
May 31-June 7 - 2009 Bead & Button Show - Midwest Airlines Center
FILM
Apr 15 - Ziegfeld Girl (1941) - Charles Allis Art Museum
Apr 29 - Cairo (1942) - Charles Allis Art Museum
Thru June 11 - Ghosts of the Abyss - Humphrey IMAX Theater / Planetarium
Thru Oct 1 - Sea Monsters - Humphrey IMAX Theater / Planetarium
MUSEUM EVENTS & EXHIBITS
Apr 15 - Spring Break Camp – Titanic Camp - Milwaukee Public Museum
Apr 16 - Spring Break Camp – Astro Camp - Milwaukee Public Museum
Apr 17-18 - Overnight at the Museum - Milwaukee Public Museum
Apr 25, 27 - Docent Guided Tours: Museum Highlights - Milwaukee Public Museum
Apr 30 - Indiana Jones Adventure - Harley-Davidson Museum
Thru May 25 - Night of the Titanic - Milwaukee Public Museum
Thru May 25 - Titanic:The Artifact Exhibition - Milwaukee Public Museum
Thru June 11 - Rock Stars 2 - Milwaukee Public Museum
Thru Aug 15 - Numismatics! Selections from the MPM Collection - Milwaukee Public Museum
Thru Oct 1 - Astronaut at the Daniel M Soref Planetarium - Milwaukee Public Museum
MUSIC
Apr 15 - Ezra Furman and the Harpoons - Shank Hall
Apr 15 - Take Solace - Bad Genie Rock Lounge
Apr 16 - The Parlor Mob & Invade Rome - Turner Hall Ballroom
Apr 16 - Kreator / Exodus - The Rave
Apr 16 - Alesana - The Rave
Apr 16 - Roman Candle, The Deep Vibration - Shank Hall
Apr 16 - Flamenco with Peter Baime - Wisconsin Conservatory of Music
Apr 17 - Chris Cornell - The Pabst Theater
Apr 17 - (Hed)p.e. - The Rave
Apr 17 - Adrian Belew Power Trio - Shank Hall
Apr 18 - The Temptations - The Riverside
Apr 18 - Jeff Beck - Turner Hall Ballroom
Apr 18 - Cannibal Corpse - The Rave
Apr 18 - Pezzettino, Jentri Collelo, Miles Nielsen - Shank Hall
Apr 18 - LoveMonkeys - Milwaukee Ale House
Apr 18 - The Saltshakers - BBC
Apr 18 - Nationally Recorded Jazz Artist Festival - Fuzion Cafe & Lounge
Apr 18 - Zebras, The Demix and Swamp - Club Anything
Apr 18 - The Mighty Legionnaires - Cafe Brucke
Apr 19 - The White Tie Affair - The Rave
Apr 20-21 - Prometheus Trio - Wisconsin Conservatory of Music
Apr 21 - Ray LaMontagne - The Riverside
Apr 21 - Bamboozle Road Show - The Rave
Apr 22 - Peter, Bjorn and John - The Pabst Theater
Apr 22 - Alkaline Trio - The Rave
Apr 22 - Todd Lorenz - Art Bar
Apr 23 - Indigo Girls - The Pabst Theater
Apr 23 - Girlyman - Shank Hall
Apr 23 - Scott Rockit Band - Flannery's Bar and Restaurant
Apr 24 - M. Ward - The Pabst Theater
Apr 24 - New Found Glory - The Rave
Apr 24 - Rocco Deluca and The Burden - Turner Hall Ballroom
Apr 24 - Chapman Party of Five, Corruptible - Shank Hall
Apr 24-26 - MSO: Rich & Mellow - Marcus Center for the Performing Arts
Apr 25 - Neko Case - The Riverside
Apr 25 - Dragonforce - The Rave
Apr 25 - My Mourning Belle - Shank Hall
Apr 26 - Festival City Symphony: On Your Mark - The Pabst Theater
Apr 26 - Mama’s Girls - Turner Hall Ballroom
Apr 27 - 29th Annual WAMI Awards - Turner Hall Ballroom
Apr 28 - Jeanyi Kim - The Pabst Theater
Apr 28 - Pato Banton, The Socialites - Shank Hall
Apr 29 - Franz Ferdinand - The Rave
Apr 29 - Colin Hay - Turner Hall Ballroom
Apr 30 - The Killers - The Rave
Apr 30 - Robbie Fulks - Shank Hall
Apr 30 - MSO: Renee Fleming - Marcus Center for the Performing Arts
Apr 30 - Matt Schroeder, fingerstyle guitar - Wisconsin Conservatory of Music
May 1 - Willy Porter - The Pabst Theater
May 1 - Los Temerarios - The Rave
May 1 - The Schwag - Shank Hall
May 1-3 - MSO: Excitement - Marcus Center for the Performing Arts
May 2 - Flight of The Conchords - The Riverside
May 2 - Kate Voegele - The Rave
May 2 - The Pete Saia Band, ArteMiss - Shank Hall
May 5 - Dan Deacon & 15 Piece Ensemble - Turner Hall Ballroom
May 6 - Sara Watkins - Shank Hall
May 7 - Cursive - Turner Hall Ballroom
May 7 - G.B. Leighton - Shank Hall
May 8 - Sing It Loud - The Rave
May 8 - Twiztid - The Rave
May 8 - GYPSY -Reunion- - Shank Hall
May 8-9 - MSO: Salute to American Jazz - Marcus Center for the Performing Arts
May 9 - Mogwai - Turner Hall Ballroom
May 9 - James Taylor & His Bank - The Milwaukee Theatre
May 9 - RehabMKE - The Rave
May 9 - The Sounds - The Rave
May 9 - Spiral Trance - The Rave
May 9 - Green, The Pugilists - Shank Hall
May 11 - The Soul of John Black - Turner Hall Ballroom
May 11 - The Syn - Shank Hall
May 12 - India.Arie - The Riverside
May 12 - Buckcherry Chevelle - The Rave
May 12 - Testament - The Rave
May 13 - David Greenberger & The Paul Cebar Stage Ensemble - The Pabst Theater
May 13 - James Lee Stanley - Shank Hall
May 14 - Dan Hicks - Turner Hall Ballroom
May 14 - Static-X - The Rave
May 14 - Danger Radio - The Rave
May 14 - Blue October - The Rave
May 14- Future Shock: Breakbeat Hip Hop Jazz Fusion - Wisconsin Conservatory of Music
May 15 - Smoking Popes & Maritime - Turner Hall Ballroom
May 15 - Lady Sovereign - The Rave
May 16 - Fever Marlene - Turner Hall Ballroom
May 16 - Fall Out Boy - The Rave
May 16 - RoShamBo - Shank Hall
May 17 - VAST - Shank Hall
May 19 - Animal Collective - The Riverside
May 20 - Taking Back Sunday - The Rave
May 22 - Secret Chiefs 3 - Turner Hall Ballroom
May 22 - Andre Rieu & The Johann Strauss Orchestra - The Milwaukee Theatre
May 22 - Pennywise & Pepper - The Rave
May 22 - The Color Truth, Rehyn, Katie Todd Band, Doug Shea - Shank Hall
May 22 - Hounds Tooth - Up and Under Pub
May 23 - A Farewell Rescue - The Rave
May 23 - Charleston Wade, John Petty, Taylor Bastian - Shank Hall
May 25 - Southern Culture on The Skids - Turner Hall Ballroom
May 26 - William Barnewitz - The Pabst Theater
May 29 - The Decemberists - The Riverside
May 29 - Philip Gatewood - Shank Hall
May 29-31 - MSO: Musical Surprises - Marcus Center for the Performing Arts
May 30 - Third Eye Blind - The Riverside
May 30 - Cosmic Railroad - The Rave
May 30 - Will Phalen - Shank Hall
SPORTS – MILWAUKEE ADMIRALS – BRADLEY CENTER
Apr 16 - Playoff Game #1 vs. Rockford
Apr 18 - Playoff Game #2 vs. Rockford
SPORTS – MILWAUKEE IRON – BRADLEY CENTER
Apr 17 - Peoria Pirates
May 1 - Green Bay Blizzard
May 15 - Tulsa Talons
THEATER
Apr 15 - Soul Fire, Spoken Word, & Slam Open Mic - Miramar Theatre
Apr 15-19 - Altar Boyz - Marcus Center for the Performing Arts
Apr 16-19 - I Just Stopped By to See The Man - Stiemke Theater
Apr 16-19 - Fire on the Bayou - Stackner Cabaret
Apr 16-19 - The Cherry Orchard - Quadracci Powerhouse Theater
Apr 16-May 3 - Brooklyn Boy - Broadway Theatre Center’s Cabot Theatre
Apr 17-19 - Florentine Opera presents The Magic Flute - Marcus Center for the Performing Arts
Apr 17-May 17 - How I Became A Pirate - Todd Wehr Theater
Apr 18 - Milwaukee Shakespeare: Othello - Broadway Theatre Center
Apr 21-26 - Altar Boyz - Marcus Center for the Performing Arts
Apr 22-26 - I Just Stopped By to See The Man - Stiemke Theater
Apr 22-26 - Fire on the Bayou - Stackner Cabaret
Apr 22-26 - The Cherry Orchard - Quadracci Powerhouse Theater
Apr 24-25 - Ain’t Misbehavin’ - The Milwaukee Theatre
Apr 28-May 3 - I Just Stopped By to See The Man - Stiemke Theater
Apr 28-May 3 - Fire on the Bayou - Stackner Cabaret
Apr 29-May 3 - The Cherry Orchard - Quadracci Powerhouse Theater
May 5-10 - Fire on the Bayou - Stackner Cabaret
May 5-10 - The Cherry Orchard - Quadracci Powerhouse Theater
May 13-17 - Shear Madness - Marcus Center for the Performing Arts
May 19-24 - Shear Madness - Marcus Center for the Performing Arts
May 13-17 - Shear Madness - Marcus Center for the Performing Arts
May 22 - The Pirates of Penzance - Broadway Theatre Center
May 26-31 - Shear Madness - Marcus Center for the Performing Arts
VISUAL ARTS
Apr 16-July 12 - Class Pictures: Photographs by Dawoud Bey - Milwaukee Art Museum
Apr 17-18 - Spring Gallery Night & Day - Various Downtown Locations
Apr 17 – May 2 - 4th Annual Gallery Project Winner Alex Chaney - Tory Folliard Gallery
Apr 17- May 9 - Creative Fusion 2009 - Milwaukee Institute of Art & Design
Apr 17–Aug 14 - Wisconsin at Work: Thorsten Lindberg Paintings and Drawings Milwaukee School of Engineering
Apr 25 - 50th Anniversary of Bal Du Lac - Milwaukee Art Museum
Thru Apr 26 - Jan Lievens: A Dutch Master Rediscovered - Milwaukee Art Museum
Thru May 3 - The Natural Motif: New Drawings by Natalie Settles - Charles Allis Art Museum
Thru May 30 - New Acquisitions - DeLind Fine Art
Thru June 7 - Marina Bychkova: Enchanted Doll - Villa Terrace Decorative Arts Museum
Thru Oct 4 - Whatever is There is a Truth: Robert Rauschenberg’s Prints - Haggerty Museum
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Labels: Events
According to the National Association of Realtors (NAR), existing-home sales increased in February 2009 after a month of declining activity in January. In February, existing home sales increased 5.1 percent.
