Wisconsin's Housing Market Sees Strong Growth in Early 2024 Despite Tight Supply

In March, existing home sales in Wisconsin saw a 3.2% increase compared to the same month in 2023, with the median home price rising an impressive 10.1% to $299,900. This trend isn't just a flash in the pan; the first quarter of 2024 experienced a 5.6% increase in home sales and a 6.7% rise in median prices year-over-year, settling at $280,000.

Despite these gains, the supply of available homes remains critically low, with just 2.9 months of inventory recorded in March. This is significantly below the six-month mark typically indicative of a balanced market. However, there's a silver lining as the inventory situation has shown signs of improvement across the state, thanks in part to an increase in new listings, which rose by 4% from March 2023 to March 2024.

The total number of listings also grew by 10.6% during the same period, suggesting that more homeowners are willing to sell, potentially easing some of the market tightness. Yet, these positive developments in supply have been somewhat overshadowed by rising mortgage rates. The average 30-year fixed mortgage rate climbed to 6.82% in March, up from 6.64% at the start of the quarter and a year-over-year increase from 6.54%.

This rise in mortgage rates, combined with higher home prices, has put a strain on affordability. The Wisconsin Housing Affordability Index, which measures the percentage of a median-priced home that a median-income family can afford under current financial conditions, has dropped by 10.6% over the past year to 126. This level is nearing the lowest point in nearly 15 years, a stark indication of the growing challenge faced by potential homebuyers in the state.

As we move forward into 2024, the dynamics of Wisconsin’s housing market will continue to evolve. Potential buyers and sellers should stay informed and possibly consult real estate professionals to navigate this increasingly complex landscape. With careful planning and understanding of market trends, stakeholders can strategize effectively to meet their real estate goals in this competitive environment.

Check out the entire WRA report here: https://www.wra.org/HSRMar2024/