T
he Wisconsin REALTORS Association's latest report reveals that the state remains in a strong seller's market with limited inventory. Available homes make up only 3.3 months of supply, far below the balanced market threshold. Affordability continues to be a challenge for first-time homebuyers, who struggle with high mortgage rates and lack equity from selling an existing home.
Mary Jo Bowe, Chair of the Board of Directors, notes that while 30-year mortgage rates have decreased since peaking at nearly 8% in October 2023, they remain in the upper 6% to low 7% range. This creates significant affordability issues for first-time buyers who rely heavily on financing.
Tom Larson, President & CEO, highlights potential advantages of buying a home during the winter months: less competition from other buyers and more flexibility from motivated sellers. David Clark, Professor Emeritus of Economics and WRA Consultant, suggests that another short-term rate decrease is possible due to speculation about the Federal Open Market Committee's decision to lower the short-term Federal Funds rate.
Key report highlights include:
* Tight inventory persists despite solid demand conditions.
* November existing home sales rose 1.7% compared to last year, with a median price increase of 10.8%.
* Year-to-date growth was positive across regions, but affordability remains a challenge.
* The housing market remains a strong seller's market, with only 3.3 months of available supply.
* Affordability issues persist, especially for first-time buyers who lack equity and face rising mortgage rates.
