Home prices and sales in Wisconsin continued to drop in the first six months of this year, more effects of the foreclosure crisis and stricter lending practices.
Market data showed that the median home price in the state dropped by 3.3 percent to $151,700 in the second quarter of this year, compared with $156,900 for the same period the previous year. The median home price in the first quarter was below 18 percent from the same period in 2008, dropping to $132,500 from $161,100.
According to industry analysts, the unusually huge volume of foreclosed properties sold on the market distorted the median price downward. In Sauk County, home prices were 20 percent to 30 percent below than their market value two years ago.
Analysts blamed the banks that unloaded volumes of foreclosure houses on the market for the drop in home prices. They said that banks have reduced monthly home prices in compliance with ownership laws. As a result, they made it difficult for many homeowners to boost the market value of their properties unless they are in good condition.
In Baraboo, there were only 189 properties listed for sale and 859 for the whole of Sauk County. Analysts explained that many homeowners are holding off selling their properties because they could not compete with low-priced foreclosure homes.
Aside from unloading a huge number of foreclosure houses on the market, banks also have become conscious on where they invest their money. This made it even more difficult for prospective buyers to obtain loans, resulting to delays in the completion of sale.
Analysts noted that a typical sales transaction takes only a month to finalize. Now, it could last as long as two months. It is even worst with rehabilitated properties, which accounted for 15 percent to 20 percent of all homes for sale, as the deal could take more than 60 days.
Market data showed that the number of home sales in the first six months of this year was almost equal with the first half of the previous year. But analysts noted that Sauk County's home sales and median price still fared better than statewide figures.
From April to June, Wisconsin's home sales declined by 10.5 percent compared with same period last year and the first quarter. Similarly, the median home price statewide dropped by 9.9 percent compared with the same period a year ago.
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