After a dip in September, Wisconsin home sales rebounded slightly last month. But despite an increase in new listings, inventory remains tight and the median price grew to $310,000.
The Wisconsin Realtors Association’s October report shows existing home sales rose by 3.5 percent compared to the same time last year. Still, demand continued to outpace supply, especially in metropolitan counties. That pushed the median home price up by nearly 11 percent compared to the same 12-month period ending last October.
Dave Clark is a Marquette University emeritus professor of economics. He told WPR that the only price range close to a six-month inventory, which realtors consider a balanced market, is for homes selling at $500,000 or more.
For homes selling at or below $200,000, which is considered entry level, Clark said there’s just more than three months of supply.
“It’s especially challenging for first time buyers, because they tend to be buying at those entry level price ranges and the supply is tightest there,” Clark said.
The association reported mortgage rates increased by a quarter percent in October for a state average of 6.43 percent. Clark said that’s also affecting sellers, who likely refinanced at historically low interest rates at the end of 2020 during the COVID-19 pandemic.