Rock County home sales, prices increase
Reader poll
Photo
The local home sales figures are slowly ticking up as demonstrated by this sold home on Janesvile's north side.
JANESVILLE — Bethany and Brian Sachs put their Janesville home on the market in March.
Three days after listing it themselves, they accepted an offer for the 1,700-square-foot ranch home on the city’s northeast side.
In May, however, they learned the buyer’s financing fell through.
With their own impending move, time was of the essence, and the Sachses turned to a real estate agent.
“We had a ton of interest,” Bethany Sachs said. “We had 20 showings in two and a half weeks and got two offers on the same day.”
The experience of the Sachses, who expect to close the sale this week, is a good example of a resurgent housing market in Rock County.
Homes are selling, again, and they’re selling for more money.
That’s good news for a market that’s been struggling in recent years with a glut of foreclosed and distressed sales that have kept average sales prices low.
Sales of existing homes in Rock County surged from April through June, according to the South Central Wisconsin Multiple Listing Service, a clearinghouse of more than 500 real estate firms that provide listing and sales information.
Realtors sold 522 homes in the second quarter of this year. That’s a 19 percent increase over the same quarter last year and the second-best second-quarter performance in several years.
April-June sales were nearly 48 percent ahead of those posted in the first quarter of this year, a traditionally slower time of year for real estate agents.
“It is too early to make predictions, but the local real estate market has a comfortable feel about it right now,” said Jerry Morse, president of the Rock Green Realtors Association and owner of The Morse Co. in Janesville.
Perhaps more significant than the number of sales, however, are the prices buyers were willing to pay to close those sales.
The average sales price for the most recent quarter was $115,175, a 10.8 percent increase over the second quarter of 2011 and a 17.3 percent jump over the first quarter of this year.
“This is the first time in several years that home prices have risen substantially,” Morse said. “It could be a sign that the market has bottomed out and we are indeed recovering from four years of a down market.”
Morse said he’s not convinced the area’s inventory of distressed, lower-priced homes has been cleared to the point that the housing market is moving toward normal levels.
In fact, he said, nearly 30 percent of the homes sold so far this year were either short sales or properties owned by lenders after an unsuccessful sale at a foreclosure auction. Last year, distressed sales accounted for about 28 percent of the homes sold in Rock County.
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan.
Instead, Morse attributes the increased activity to continued low interest rates, modest improvements in the local unemployment rate, favorable prices and a pent-up demand among those who have waited several years to make a decision to move.
“There have been a lot of people sitting on the sidelines for so long,” he said.
The Sachses got close to their asking price on both the offers they accepted. In fact, they listed their home at a higher price the second time around because they knew they’d have to pay the agent’s commission.
Inventory drops
While sales have increased, Morse said the local inventory for single-family homes continues to decline.
The market has about a seven-month supply of homes, which is determined by dividing the inventory of about 1,000 homes for sale by the 150 or so sales that agents have been averaging each month in 2012.
Given the current inventory, Morse said a six-month supply is considered balanced between sellers and buyers. Inventory of less than that favors sellers, while more inventory is considered a buyers’ market.
“If you’re a seller, the recent price increases should get you excited,” he said. “I’ve talked to a lot of people who say, “I know I’m not going to get what I want, but it seems a little better, now.’”
Morse said the recent improvements in the market should be an indication to buyers that they might want to be more aggressive.
“We’re seeing multiple offers coming in on a property and sales in the higher price ranges,” he said.
Local real estate agents have accepted offers on homes ranging from $30,000 to $470,000, he said.
A dozen or so homes recently sold for more than $300,000, noteworthy because the market not long ago endured a drought of sales above $250,000, he said.
Morse said financing seems to be more available, and the Wisconsin Housing and Economic Development Authority recently made changes that should help buyers who can’t meet down payment requirements on other loan programs.
The improving market also has improved morale and interest among real estate insiders. The Rock Green Realtors Association is gaining members after years of membership declines.
“Given all indications, the bottom may have been reached in our housing market, and price and activity may be primed for a continued recovery,” he said.
Jul 24, 2012 at 8:40 a.m.
Suggest removal
Is it true that a majority of local realtors supported Gov. Walker's economic "plan"? I always enjoy popular news myths (stories) and urban legends but the reality is that foreclosures are up and new construction jobs are down(10,000). Just read your local papers during this fair week. When will the governor finally address Wisconsin's economic hemorrhage? Jobs Anyone? Can you recall when the next election will take place? Will "trickle down" politicians do anything to help the average voter (worker)? Just wait a little longer and see.
Jul 24, 2012 at 7:43 a.m.
Suggest removal
Forty Million Houses in the US That No One Needs? June 25, 2012 – by Staff Report
40 million houses too many ... one explanation for falling prices ... America has too many big houses – 40 million, to be exact – because consumers are shifting preferences to condos, apartments and small homes, experts told the New Partners for Smart Growth Thursday, holding its 11th annual conference in San Diego through Sunday. Relying on developers' surveys, Chris Nelson, who heads the Metropolitan Research Center at the University of Utah, said 43 percent of Americans prefer traditional big, suburban homes but the rest don't. "That means we are out of balance in terms of where the market is right now, let alone trending toward the future," he said. He estimated that this demand suggests a need for 10 million more attached homes and 30 million more small homes on 4,000-square-foot lots or less. By contrast, demand for large-lot homes is 40 million less than currently available. "Is it any wonder that suburban homes are plummeting in price, because there is far less demand of those homes than in the past," he said. – UT San Diego.
Jul 24, 2012 at 7:41 a.m.
Suggest removal
In CA City, Mixed Picture of Life after Bankruptcy, July 23, 2012:
Normally, municipal bankruptcies are extremely rare and occur for different reasons, but with the economy still struggling, bankruptcies are becoming more prevalent. City councils continued approving raises and benefits for workers, ignoring warnings from citizen oversight commissions. Police and fire officials could retire at 50 with 90% of their final year's salary. After one year of service, public employees could get health care coverage for life, and so could their families. Starting in 2005, the city began spending $3 million to $4 million a year more than it was taking in, draining its reserve fund. When the housing bubble burst, property tax revenue fell by 30 percent and sales tax receipts dropped 20 percent. By 2008, the city was facing a $16 million deficit. Local leaders held 11 mediation sessions with public employees, whose salaries and benefits accounted for about 75 percent of the $80 million general fund budget, but were unable to reach an agreement on givebacks. Initially after bankruptcy, things were worse than anyone imagined they'd be. Some city workers were unprepared for how bad things would be during the restructuring and now wish they had done more to avoid it. Matt Fenzl, spokesman for the Vallejo firefighters union, likened the employees' mentality to a child who is given ice cream every evening and then suddenly told the treat is unhealthy. "We had a false sense of what was sustainable and what wasn't," he said. His advice to public employees in other struggling cities: "Be ready to make significant sacrifices to avoid bankruptcy." During the restructuring, Vallejo escaped at least $32 million in debt, paying some creditors as little as 5 cents on the dollar. And up to $100 million in health care obligations were removed when the city cut benefits for retirees to $300 per month, down from $1,500 in some cases. But Vallejo also racked up $13 million in legal bills and was unable to rework its pension plan, still a $165 million unfunded liability.
Jul 23, 2012 at 11:01 p.m.
Suggest removal
And just so were clear my neighbor across the street just sold his home in 10 days! He had 10 showings and 3 offers! They had a realtor do a comparative market analysis and priced it accordingly, sold right away. He built the home 15 years ago and walked away good. Another home a block away sold in 2 weeks. Its all about knowing the current "value" and taking it for what its worth now, if you have an inflated idea of what your home is worth or are holding out for what you paid ofr it say6-7 years ago, good luck its gonna be a long wait. I know of another guy close to me who had his home priced higher and had almost no showings and didnt sell because he couldnt get what he wanted(needed) to get out of it. The market will NEVER again be what it was, and lets hope it doesnt ever get there again, it ruined the global economy, literally.
PT curious where you purchased a home for 15 years ago for 256 and now cant even get 129? Face it you got hosed! Also I would say that 15 years ago puts you directly at the beginning of the boom, so maybe you should have sold your home in 2005 when you could have possibly doubled your money, that is , if your figures are accurate. In 200-2006 you couldnt get a large doghouse for less than 200K.
Jul 23, 2012 at 10:53 p.m.
Suggest removal
Maine- When we start having businesses pay state income taxes? Since 66% of them don't, not to mention when our city/state stops giving away tax dollars to companies, like say SHINE, who wont pay a dime and got a 100 million dollar welcome gift? Unfortunately we have a need for public schools and police, until you can find a way to magically pay for them you'll have to pay taxes. I know some of you people will never be satisfied until you pay no taxes on anything, its just a harsh reality. I live in a decent neighborhood in Janesville and mytaxes have fluxuated up and down slightly in the past 10 years, nothing dramatic. I paid $360 more this year than 10 years ago, so please stop with the hysterics and myths about these outrageous taxes, we pay less now than in any time in 60 years!
Jul 23, 2012 at 9:36 p.m.
Suggest removal
Banks still have a HUGE shadow inventory that they can't put on the market all at once because it would make prices nosedive. Also, check out home prices on Zillow.com and see how high property taxes are! It is like paying rent on something you own. When is property tax reform going to happen?
Jul 23, 2012 at 5:53 p.m.
Suggest removal
"The Sachses got close to their asking price on both the offers they accepted"
They ACCEPTED 2 offers? So both families will live in the house?
I hate, when I watch House Hunters, they always want the seller to pay for their closing AND want a discount. Buyer should pay their own closing. Walmart doesn't pay you tax when you buy something.
Jul 23, 2012 at 5:45 p.m.
Suggest removal
oops I see 2 offers- doesn't say "excepted offers" though.
Jul 23, 2012 at 5:43 p.m.
Suggest removal
"20 showings in two weeks"
my thought is what is wrong with it because if 20 showing and no offer.
Jul 23, 2012 at 12:21 p.m.
Suggest removal
Sorry Kenny.. I bought my house 18 years ago.. Was nothing inflated about the pricing back then..
Jul 23, 2012 at 9:35 a.m.
Suggest removal
20 showings in 2 1/2 weeks? I find that improbable... Been on the market for a month and a half and had just 2 showings. Either I need a new realtor or these folks are just outliers, the exceptions that prove the rule.
Jul 23, 2012 at 9:26 a.m.
Suggest removal
I agree PT- this article is all hype. Comparing today's sales to the last quarter of 2011 and the first quarter of 2012 isn't saying anything. Those quarters were low. Anyone can sell a house for under it's value- it doesn't take a real estate license. Let's not "pretend" the economy in Janesville has gotten better, it's gotten worse.
Jul 23, 2012 at 9:10 a.m.
Suggest removal
PT said: "Ohhh Boy.. Does this mean I can finally sell my home which used to be worth $256,000 for $115,175???"
.
By "worth" I assume you mean the purchasing price. Unfortunately you probably bought at a time when the real estate market was grossly inflated. As did I. I think you are going to have to wait a very long time before your house is "worth" $256K.
Jul 23, 2012 at 8:13 a.m.
Suggest removal
Great news ! Hopefully we've seen the worst, and are on our way back up.
Jul 23, 2012 at 5:28 a.m.
Suggest removal
Ohhh Boy.. Does this mean I can finally sell my home which used to be worth $256,000 for $115,175???
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.