By Benjamin Yount | The Center Square contributor
(The Center Square) – There just aren’t a lot of homes for sale in Wisconsin, and that is keeping prices high.
The latest report from the Wisconsin Realtors Association shows November was another month of tight inventory.
“The inventory of available homes remains very tight even as solid demand conditions persist. The mismatch between supply and demand has limited sales growth and driven up home prices,” the report states. “November existing home sales rose by a modest 1.7% compared to November 2023.”
While sales are up less than 2 percent, the report says prices are up nearly 11%.
“Compared to November 2023…the median price rose 10.8% to $310,000,” the report adds. “On a year-to-date basis, home sales were up 4.1% compared to the January-through-November period in 2023, and the median price rose 8.8% to $310,000.”
Once again the report says the Madison-area is the most popular, and has some of the strongest sales.
“November sales varied across regions, with solid growth in the South Central region, up 6.9%, and the West, up 15.3%; relatively flat sales in the Central region, down 0.2%, and the Southeast, up 1.2%; and weaker sales in the Northeast, down 4.4%, and the North, down 5.1%,” the report notes. “In contrast, year-to-date growth for 2024 was consistently positive across regions ranging from 1.8% to 6.4%, compared to the first 11 months of last year.”
Real estate agents, however, warn sales could slow further going forward, but not because of the prices.
“Home sales are generally slower during the winter months, but there are some potential advantages to buying during this time of year. You will likely face less competition from other buyers, and as a result, you can expect more flexibility from sellers who are motivated to list their homes during this slower season for sales,” Realtors CEO Tom Larson said.
Interest rate cuts are also making things a bit easier for prospective home buyers as we head into the end of 20204.
“The 30-year mortgage rate has clearly come down over the last year after it peaked at almost 8% at the end of October 2023. However, the rate has stayed in the upper 6% to low 7% range for much of this year, and it averaged 6.8% in November,” Realtors chair Mary Jo Bowe said. “High mortgage rates create significant affordability problems for first-time buyers who rely heavily on financing to buy homes.”
The $310,000 median home price in Wisconsin for November is the same as it was in October. Agents are quick to point out that is a statewide median price. Home prices in the Madison and Milwaukee areas are more expensive, on average, than that.
Syndicated with permission from The Center Square.
