Home sales in May 2023 were 21.5% lower than those in May 2022 as a tight supply continues to drive up prices.
The median price of homes in May 2023 rose to $294,000 rising 6.9% over the last 12 months. The average 30-year fixed mortgage increased from an average of 5.23% in May 2022 to 6.40% in May 2023. Even though this is a strong seller’s market, there is evidence of softening demand because of higher mortgage rates.
The inventory this May remains the same, sitting at a 2.8-month supply. Given the average pace of sales over the last 12 months, we would need 18,634 additional homes available to get back to a balanced six-month supply.
Joe Horning, Chairman of the Board of Directors, of Wisconsin REALTORS® Association had this to say about potential buyers and the weak supply, “ An aging baby-boom generation, now ready to downsize, is being replaced as the largest generation by millennials at their prime homebuying stage of life. While this demographic shift should translate into much stronger sales, higher mortgage rates have sidelined millennial buyers and have also kept some boomers from listing their homes. With new construction remaining low, our inventory problems persist.”
Source data provided by the WRA
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