Rock County seeing pick up in home sales
JANESVILLE — Second quarter sales of existing Rock County homes outpaced the state and nation, but average prices still showed signs of a local housing market dominated by activity on its lower end.
The Wisconsin Realtors Association on Wednesday reported 612 sales for Rock County, up 33 percent from the comparable second quarter of last year and nearly double those posted in the first quarter of this year.
The average sales price, however, was $113,600, a drop of more than $8,000 from the sales posted in the second quarter of 2009.
Paula Carrier, president of Best Realty of Edgerton and president of the Rock-Green Realtors Association, said she's pleased with the increase in sales.
The drop in price, she said, is the result of a combination of a large number of foreclosure sales and first-time homebuyers who took advantage of federal tax credits by the June 30 deadline.
Foreclosure sales, she said, dropped the average prices and some properties were sold for 50 percent of their value.
And first-time buyers are typically entering the market in the lower price ranges, she said.
"First-time buyers found that they could buy cheaper than they could rent, especially with the tax credits," Carrier said. "That and the foreclosures really kept most of the activity for the quarter to the lower price range.
"There just wasn't that much activity on the higher end, where I think the local economy was more of a concern for that circle of buyers."
Carrier said the average property spent 108 days on the market, which she said is a reasonable amount of time. Higher priced homes tended to linger for about a month longer, while those on the lower end tended to move about 30 days earlier.
This summer's sales have been relatively slow, she said, adding that the summer slowdown is an annual phenomenon as people find other things to do.
"I expect it will pick up again later this quarter, primarily because interest rates are so favorable," she said.
"We also need to see a slowdown in the foreclosure market, because until those are sold, there's a negative impact on the rest of the market. And, of course, we need to see some improvement in the local job situation."
Nationally, existing home sales rose 17.3 percent in the second quarter as compared to the same quarter last year. Wisconsin sales were up 19.4 percent for the same period.
Aug 14, 2010 at 2:59 p.m.
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Mouse, can be confusing: their, there, they're.
Aug 13, 2010 at 3:13 p.m.
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"new lower price" tags are popping up on forsale signs like dandilyons
Aug 13, 2010 at 11:23 a.m.
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Mouse, when the sales price of a home drops, so does the broker's commission. It's a percentage.
Aug 13, 2010 at 10:19 a.m.
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I would think somebody selling a home would be glad to see an offer, even if it is one to reject.
Aug 13, 2010 at 9:24 a.m.
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It's nice to read a positive story. Kudos to the Gazette.
I must say that reading this story has caused some questions. On the surface this is great news for the economy. But has this been caused by GM employees relocating ? People running from the tax increases ? People chasing jobs elsewhere ?
Also if these are first time buyers are they getting caught up in 3 yr loans and we will see another high turnover of homes in three yrs due to higher interest rates, divorces, or the further drop of property value/higher taxes ?
The banks owe the govt money from bailouts. The govt offers first time buyers programs to try stimulating the economy. This same thing was done 10 yrs ago and 50% of the people who signed up lost their homes even though they made every payment on time. What they found out was all they were paying was pure interest in that 3 yrs. At the end of that 3 yrs, the total amount was due or they had to refinance into a larger interest rate loan. 50% were either divorcing or couldn't afford it. The bank gained an asset, the buyers paid nothing but interest, and the homes were foreclosed on with the former buyer having to pay the difference while the new buyer started the cycle over again. The banks were getting payments from both the new and former owners on a single piece of property. Banks made billions, property buyers paid millions. Are we seeing that cycle starting over again ?
Aug 13, 2010 at 8:57 a.m.
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I do understand that the market is driving the price of homes down, but for buyers out there thinking every home is a foreclosure or short sale , please think again. Some of us are selling to relocate, upgrade, downgrade or change school districts. We can wait, please dont insult us with offers that we have to laugh at. If you are looking for a great deal, ask your agent to show you short sales and banks repos.
Aug 13, 2010 at 8:26 a.m.
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The average sales price, however, was $113,600, a drop of more than $8,000 from the sales posted in the second quarter of 2009.
Paula Carrier, president of Best Realty of Edgerton and president of the Rock-Green Realtors Association, said she's pleased with the increase in sales.
The drop in price, she said, is the result of a combination of a large number of foreclosure sales and first-time homebuyers who took advantage of federal tax credits by the June 30 deadline.
Gotta keep them realtors happy. What percentage have they dropped there rates?
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