Key points from the WRA on the Wisconsin Housing Report for August 2023.
Home Sales: We continue to see weaker sales and higher prices in the Wisconsin market even as the inventory situation improved slightly. Home sales for the month of August declined by 18.3% since August 2022 sitting at 6,889.
Home Prices: The median house price rose 10% compared to last August, with the median price now at $300,000. Last August the median price was $272,725.
Affordability: The Wisconsin Affordability Index fell to 123 in August 2023, which is the lowest level since 2009 when the WRA began tracking the index. This is likely due to a combination of rising prices and higher mortgage rates.
Mortgage Rates: Mortgage rates have continued to increase, with the average 30-year fixed mortgage rate reaching 7.1% in August 2023. Higher mortgage rates continue to erode housing affordability, making it expensive for potential buyers to finance their homes.
Inventory: While the overall inventory is still below the ideal balanced market level of 6 months of supply, there has been a slight improvement. In August 2023, there were 3.4 months of supply compared to 3 months of supply in August 2022. Months of inventory have improved in every region of the state, across all price ranges, and for all urban-rural classifications.
The Wisconsin Housing market is facing challenges in terms of weaker sales, reduced affordability, and higher mortgage rates. However, there are some positive signs, such as an increase in inventory levels, which may provide some relief for potential buyers.
Source data provided by the WRA
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