The data in the following charts were pulled from the Realtor's? Association of Northwestern Wisconsin Multiple Listing Service. The numbers relate to Eau Claire County, including the cities of Eau Claire, Altoona, Augusta, and Fall Creek. 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

2000523

2001574 9.8%

2002665 15.9%

2003631-5.1%

2004718 13.8%

2005706-1.7%

2006637-9.8%

Clearly, 2006 is running behind both 2004 and 2005. It is interesting to note that while 2005 was a record year nationwide, it actually lagged a little behind 2004 in Eau Claire. Residential sales in Eau Claire County are down almost 10% from this time in 2005.

Eau Claire County has been harder hit by the slowdown than other areas of the state. 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.

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

2000$117,017

2001$125,981 7.7%

2002$127,640 1.3%

2003$135,163 5.9%

2004$138,946 2.8%

2005$144,942 4.3%

2006$147,526 1.8%

It is encouraging to see that home prices are still rising even though the number of homes sold is fewer than a year ago. Selling prices in Eau Claire County have only increased about 23% in the last 6 years, or about 3.8% annually.

What is considered "normal" regarding annual appreciation rates? According to an article on the Wisconsin Realtors Association webpage (located at http://www.news.wra.org/story.asp'a=160), the average home in Wisconsin 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. Given these numbers, the housing market in Eau Claire County still looks quite strong in the first half of 2006. We may not see appreciation of 7% in 2006, but prices are not dropping either.

Bottom line: Home sales are slowing but not crashing. Prices of homes in Eau Claire County are not falling at this time. Statewide, Wisconsin home sales are down about 4% from this time last year. Eau Claire area home sales numbers are down a bit more than the state average compared to last year.