Statewide home sales in September were 8.7% lower over the year as prices continued to rise, the latest Wisconsin Realtors Association report shows.
A total of 5,817 homes were sold in the state last month, down from 6,370 in September 2023. Still, year-to-date home sales are 3.8% higher than during the first nine months of 2023, as a “strong start” to 2024 gave a boost to this year’s total so far.
At the same time, the median home price for September rose 6% from $292,500 to $310,000. Despite the rising prices, WRA Board of Directors Chair Mary Jo Bowe says lower mortgage rates “have really helped improve affordability” in Wisconsin. Mortgage interest rates dipped to 6.18% in September, down from 7.2% in September 2023.
“Mortgage rates are more than a percent lower compared to this time last year, and this is the fourth straight month they’ve fallen since averaging a little over 7% last May,” Bowe said in the report.
WRA says the mortgage rate decline coupled with a “slight increase” in predicted median family income helped offset the home price increase, improving housing affordability by 5.7% over the past 12 months.
Meanwhile, the number of total statewide listings rose 6.1% over the year — from 19,668 to 20,862 — showing a slight improvement in inventory levels. But report authors note the housing market remains tight with only 3.8 months of available supply.
“The existing home market continued to signal a strong seller’s advantage, with supply well below the six-month benchmark that indicates a balanced housing market,” they wrote.
WRA President and CEO Tom Larson said Wisconsin still presents “a very challenging market for first-time buyers” seeking starter homes at lower price points. Just 18.2% of listings on the market last month were priced below $200,000, while 31.4% were between $200,000 and $349,999, the report shows. The other 50.4% were priced at or above $350,000.
“There’s a lot of unmet millennial demand, which unfortunately will keep pressure on prices and further shrink the inventory of starter homes,” Larson said.
See the report.
