Realtors report higher prices, too few homes for sale

The Wisconsin Realtors Association on Thursday released its report for home sales in February and it reads like the last several.

“There continues to be significant unmet millennial demand for housing, and unfortunately these buyers face significant headwinds with rising prices and high mortgage rates taking a toll on affordability. Given the weakness in inventories, we can expect strong price pressure for the foreseeable future. Hopefully mortgage rates moderate this spring to improve affordability," Realtors President Tom Larson said.

Sales for February jumped 7% compared to last year. Prices also jumped. The median home price in Wisconsin hit $304.900, which is nearly 11% higher than in February of 2023.

The report said those sales figures are “remarkable” given the prices and mortgage interest rates.

But it’s not just year-over-year numbers that are up.

The report says year-to-date sales increased 4.4%, and the median price rose 11.1% to $300,000 over that same period.

Median prices, however, continue to vary widely from region to region.

The Realtors report shows Madison and south central Wisconsin continue to lead the state for home prices, with the median price at $365,000. The most affordable area continues to be northern Wisconsin, where the median price is just $235,000. Southeast Wisconsin, including Milwaukee and the WOW counties have a median home price of $318,950.

Beyond the prices, the Realtors say Wisconsin’s biggest issue is a lack of homes for sale.

The report notes there’s less than three months of inventory available for buyers.

“The shortfall in inventory continues to make it a strong seller’s market. In February, there were just over 16,000 total listings, meaning listings would need to increase by 113% to signal a balanced market,” the report added.