Mondovi, Durand, and Osseo Real Estate Trends, January through June 2006

The data in the following charts was pulled from the Realtor’s® Association of Northwestern Wisconsin Multiple Listing Service. The numbers relate to Buffalo, Pepin, and Trempeauleau Counties, including the cities and towns of Alma, Buffalo City, Cochrane, Durand, Eleva, Independence, Mondovi, Nelson, Osseo, Pepin, Strum, and Whitehall. Data is for the first half of the year indicated (January 1 through June 30) in order to compare 2006 with previous years.

Number of Residential Homes Sold, First Half of Year

Buffalo, Pepin, and Trempeauleau County residential home sales in the first half of 2006 are running behind the 2005 number. The drop in the number of Buffalo, Pepin, and Trempeauleau County homes sold so far this year (24%) is more than the statewide and regionwide decreases. Overall, the number of Wisconsin residential home sales fell by about 4% in the first half of 2006 compared to the same period in 2005. In the Western Wisconsin region, residential home sales dropped 4.6% in the first half of 2006 compared to the same period in 2005.

Average Selling Price of Residential Homes Sold, First Half of Year

Selling prices in Buffalo, Pepin, and Trempeauleau County have increased about 41% in 6 years, or about 7% annually. Home prices in Buffalo, Pepin, and Trempeauleau Counties have increased at a quickening pace from the years 2003 through 2006 (so far).

What is considered “normal” regarding annual appreciation rates? According to this article on the Wisconsin Realtors Association webpage, the average home in Wisconsin homes appreciated 37% over five years, or 7.4% annually (on average). However, this 7.4% was during the “boom years” of 1999-2004. Perhaps it would be more appropriate to consider an annual appreciation rate of 3-5% as normal.

Bottom line: Home sales numbers in Buffalo, Pepin, and Trempeauleau County are probably correcting from the relatively large numbers of homes sold in years 2003 through 2005. Prices of Buffalo, Pepin, and Trempeauleau County homes have risen nicely since 2003 and have not decreased from one year to the next since the data became available in the year 2000. Buffalo, Pepin, and Trempeauleau County home sales numbers are lower than state and region data in the first half of 2006.