June Real Estate News

I received some statistical reports this week from Metro MLS specific to the current market conditions in the City of Racine and Racine County. The data is through June and compares 2009 to 2008. I am making a conscious decision not to go back and compare 2009 to years prior to 2008. I think we all know that numbers were higher in previous times and there is no point in reminding ourselves how far off the peak we are. While historians and statisticians may find such comparisons interesting, as a real estate professional they only serve to deepen the pain. So, since this is my blog, I've decided that the base year will now be 2008 and the positive gains moving forward will be measured against that year.

Through June, closed sales in Racine County are down 20.3% from the same point in 2008. While that is a big number, it is interesting to see that the decline in the month of June was "only" 9.7%. In other words, it is possible that the rate of decline may be, well, declining! In the City, units are down 11.8% YTD and 12.5% for the month of June-pretty close to the same trend. Median sale prices are also falling and at a slightly faster pace in June than YTD: in the County they fell 11.2% in June but only 7.5% YTD. Median sales price at the end of June is now $149,556. In the City, prices fell 17.3% in June and are down 20.9% YTD. Median price is now under $100,000 at $93,000. It is important to note, however, that comparing median sales prices is a dangerous exercise. So many factors enter the equation and the number of foreclosures and short sales have a definite effect on this comparison. Also, remember that we are dealing with median prices for a number of properties, not the actual loss of value of any particular property.

If you are interested in some other market stats, please let me know and I'll post them. It will be interesting to see how things change as move through the balance of 2009. I am guessing that you will start to see positive numbers, year over year, as we move through the rest of summer and into fall/winter. My hope is that some positive trends will help people perk up a bit about the market in Racine. And keep in mind, if you are a 1st time home buyer, you only have until December 1 to close on your purchase to qualify for the current tax credit.

If you have a particular interest in real estate that I can uncover for you, please let me know. My intention here is to provide accurate info that will benefit you in making informed decisions about Racine real estate. Please let me know how I can help.