In the first half of 2023, the Wisconsin housing market was characterized by a slower pace compared to 2024, it was considered the worst year for housing activity. Home sales increased at a slower rate, with the most significant growth seen in the more urbanized regions. The monthly median home prices in Wisconsin rose by a higher rate compared to the first half of 2023. Months of inventory statewide improved indicating a healthier balance between supply and demand in 2024 compared to 2023. The market remained a strong seller’s market in both periods, with less than six months of available supply. However, the improvement in inventory and the pace of sales in the first half of 2024 suggest a stronger market compared to 2023. Take a look at how the housing market performed in Wisconsin the second quarter of 2024. (Read The Wisconsin Housing Market – Q1 2024)
April
In Wisconsin, home sales in April 2024 saw an increase of 25.7% from 4,401 in April '23 to 5,532.
The median home price increased 6.38% from $282,000 in April '23 to $300,000 in April '24.
Months of inventory increased 6.9% from 2.7 to 3.1.
The growth in home sales was significant across all regions, with the Central, West, and North regions experiencing increases of 43.5%, 40.4%, and 37.9% respectively. This strong buyer demand, coupled with a 13% increase in new listings, has improved statewide inventory, increasing the months of inventory from 2.7 to 3.1, indicating a healthier balance between supply and demand (6 months of inventory is considered to be a healthy market).
Affordability in Wisconsin declined due to higher mortgage rates and higher home prices.
• The Avg. 30 Yr. Fixed Rate Mortgage in the US was 6.99% in April '24 up 65 basis points from 6.34% in April '23.
The Wisconsin Affordability Index shows a decline in affordability by 10.1% from April 2023 (139 in April '23 to 125 in April '24).
• A value of 100 means a family with a median income has exactly enough income to qualify for a mortgage on a median-priced home. • The WI Affordability Index shows the portion of the median prices home that a qualified buyer with median family income can afford to buy, assuming 20% down and the remaining balance financed with a 30-year fixed mortgage at current rates.
May
Existing home sales increased 10.97% from 5,917 in May '23 to 6,566 in May '24.
The median home price increased 6.95% from $295,000 in May '23 to $315,500 in May '24.
Months of inventory increased 13.33% from 3 to 3.4.
In May 2024, home sales for the first five months of 2024 were 12.1% higher than the same period in 2023, and the median price increased 7.3% to $295,000. Improved inventories contributed to this growth, with new listings increasing 4.7% compared to May 2023, and total listings rising 5.4% over the same period. The 30-Year Fixed Rate Mortgage Average in the U.S. rose to 7.06% in May 2024, caused affordability to drop to an all-time low, as indicated by the Wisconsin Housing Affordability Index falling 11.3% to 118.
June
Existing home sales decreased 10.52% from 7,225 in June '23 to 6,465 in June '24.
The median home price increased 7.38% from $305,000 in June '23 to $327,500 in June '24.
Months of inventory increased 9.375% from 3.2 to 3.5.
This month saw a decline in new listings and home sales compared to the previous year despite a rise in median home prices by 7.4% to $327,500. The 30-Year Fixed Rate Mortgage Average in the U.S. increased to 6.92%, contributing to weaker home sales. The state's housing market saw home sales growth of 6.9% in the first half of 2024, but affordability declined due to rising home prices and mortgage rates.
Interest Rates
The Avg. 30 Yr. Fixed Rate Mortgage in the US over the last year peaked in October with the average rate being 7.79% recorded on Thursday, October 26, 2023. Since then, we have not reached those highs with 7.22% being the highest so far this year on Thursday, May 2, 2024. As of July 25, the average rate sits at 6.78%.
The mortgage rate rises if the Federal Funds Rate rises and the Federal Funds Rate rises if Inflation rises. This happens to discourage people from spending so inflation doesn't continue rising which has been rising; The US Inflation Rate was at 3% in June, compared to 3.3% the previous month and 3% last June.
Conclusion
This housing environment has been much more active than in 2023 when looking at sales, prices, listings, and inventory. Every month except for June saw Year-over-Year increases in home sales this first half of the year. The median sales price has seen Year-over-Year increases above 5% every month this year. Months of inventory has increased significantly relative to the previous year reaching 3.5 months of inventory in June.
It is still a seller's market with months of inventory close to 3 months and with high demand seller's can still expect higher prices. If you're a buyer and see a home you like, act fast because rates may decline as inflation declines. If you're a seller, prepare to sell now as we approach the peak of the housing market. Visit this link to read full Home Sales Reports from the WRA.
I am a local real estate agent residing and working out of Lake Geneva, WI. Growing up in Walworth and working in residential construction on and around Geneva Lake I developed a diverse skill set that allowed me to help guide people through the real estate market in Walworth County.
I am a strong advocate for homeownership. Today, home affordability has reached the lowest levels in recent history. It is more affordable to rent than to own a home in an increasing number of areas in the United States. I will work hard to help you maneuver the current real estate market so that you can own property, build wealth, and gain freedom; so I can help you achieve The American Dream.
ON THE MARKET
221 E Market St, Burlington, WI 53105 | $450,000
RECENTLY CLOSED (May 28, 2024)
N1684 Williams Plaza, Linn, WI 53147 | $700,000
262.215.5296
223 Cook St, Suite J
Lake Geneva, WI 53147