Tight inventories have continued to keep sales low and put strong upward pressure on prices. June home sales were at 7,047, a 20.4% drop from the levels in June 2022.
The median home price rose to $304,000 in June 2023, which represents an 8.6% increase over the last 12 months. This is the first time the statewide monthly median price has exceeded $300,000. With the rise of mortgage rates and the spike in home prices, affordability in the state has been pushed down. The Wisconsin Housing Affordability Index fell from 145 in June 2022 to 125 in June 2023.
With June being the highest volume month of the year, the tightening supply is a real problem for buyers. Total listings are down 21.4% over the past 12 months. The state is below a balanced market with just 3.1 months of available supply in June, up slightly from 3.0 months in June 2022. This signals an ongoing seller’s advantage in the housing market.
Michael Theo, President & CEO, Wisconsin REALTORS® Association had this to say about higher mortgage rates and home prices, “We’ve been tracking the Wisconsin Housing Affordability Index since 2009, and the June 2023 level of the index is the lowest we’ve seen to date. It’s not difficult to understand why. Home prices are up 8.6% since June 2022, and the 30-year fixed mortgage rate is higher by more than a percent compared to last year. Until we see some moderation in price appreciation and mortgage rates, affordability is not likely to improve.”
Source data provided by the WRA
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