Total listings of homes for sale in Wisconsin plummeted nearly 40% over the last 12 months, which boosted the median home sales price over 10%, according to a recent analysis by the Wisconsin REALTORS® Association (WRA). This was a drastic difference from the modest 5% shrink in inventory in March 2020 compared to March 2019.
The southeast region of the state remains a strong seller’s market. Remarkably, there wasn’t a region in Wisconsin that had more than 2.6 months of supply of homes in March, the WRA’s report revealed. A balanced market is indicated by having 6 months of supply.
In Waukesha County, the number of home sales dipped over 12%, while median prices grew over 14% in the first quarter of the year compared to 2020’s Q1. The inventory crisis has caused housing prices to skyrocket, and will likely start weakening the number of home sales we see this summer.
Low mortgage rates have helped offset the rising home prices for buyers. According to the WRA’s report, the rate for a 30-year fixed mortgage was at 2.68% in December, and has inched up consecutively in each of the last three months, to 3.08% in March. Rising mortgage rates may start to dampen demand, and lead to moderating home prices in 2022.
For now, multiple competing offers made above asking price is expected to remain common. If you’re looking to purchase, it is imperative to have your financing lined up and to stay patient. You may lose out on a few homes you put offers on, but that just means your home is still waiting for you. At the end of the day, buyers are still closing on homes, and you will too when the time comes. Learn how to stand out from the competition with these 6 Buyer Tips.
If you’re thinking about selling while the market is in your favor, having a new place lined up is imperative. The average days on the market are down, meaning homes are selling more quickly.
Preparation is the key to success if your looking to purchase or sell a home in today’s market.
If you are thinking about selling or purchasing a property in the Lake Country area, we can help you. Request your in-person or virtual appointment below, or call us directly at (262) 567-3611 to speak to one of our real estate professionals.