Real estate is all about the seasons, so when we measure the change in monthly home and condo sales, we compare the number of units sold each month to the number of units sold during the same month of the prior year.
Dane County monthly home and condo sales have been decreasing for the past two-and-a-half years. However, the numbers are very interesting when you focus on the monthly change in sales over the last 18 months.
Here's a graph that shows the monthly change in combined home and condo sales dating back to January, 2007. Prior to September, 2007, the monthly decrease in sales ranged between 2.3% and 11.4%. In September, a big shift occurred when sales volume decreased by 26%. Since that time the monthly decrease in combined home and condo sales has ranged between 11.5% and 34.3%.
Another trend appears to be at work when you look at the change in home and condo sales separately. Take a look at this graph that separates the decrease in sales for homes and condos. In particular, look at the last two months - April and May of 2008.
The decrease in condo sales has intensified. Condo sales in April decreased by 37.1%, while condo sales in May decreased by 33.5%. The decrease in home sales, although still quite high, has shown some signs of moderation. Home sales in April decreased by 20.2%, while home sales in May decreased by just 11.9%.
Our preliminary review of June's data suggests we'll see similar results once the final June numbers are in. We'll have an update on the June numbers in a few weeks.
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