Median home prices in Wisconsin continue to rise as tight inventory has made it a seller’s market in some parts of the state.
In May, the median home price was $174,500 in Wisconsin, a 5.8 percent increase over the same period last year, according to the Wisconsin Realtors Association. In southeastern Wisconsin, the median price rose to $182,750, a 4.4 percent increase over last year.
The sharpest increase in the region was in Sheboygan County, where home prices were up 21.8 percent in May over the same time last year. The median home price in Sheboygan County is $146,200.
Washington County has also seen significant price increases with home prices up 10.9 percent to $211,900.
Milwaukee County prices were up 3.1 percent in May to $151,000. The only county to experience a decrease is Racine County, where home prices were down 3.4 percent to $140,000.
May home sales were up slightly with 1.3 percent more homes sold last month than the same time the previous year.
The first five months of 2016 set a record for sales, and puts 2017 on pace as the second strongest start to the year since 2005.
“I keep reminding people that realtors are still moving a lot of homes even though there are fewer homes on the market this year,” said Erik Sjowall, WRA board chairman.
There are only 4.3 months of supply in the urban counties, making them strong seller’s markets, Sjowall said. Waukesha, Kenosha, Rock, Racine, Dane and La Crosse counties have the least amount of supply, according to the WRA.
In contrast, the 46 non-metropolitan counties have 9.2 months of available supply, and so buyers have more leverage.
“As we enter the peak sales season, we had hoped to see inventories improve, but relative to this time last year, new listings are down slightly, and that continues to drive prices higher,” said WRA president and CEO Michael Theo.
Wisconsin’s home prices bottomed out in early 2012, and have consistently grown since that time.
Since May 2012, median prices have increased 26.4 percent, which has far outpaced the general price level as reflected in the Consumer Price Index, which increased just 6.6 percent over that same period.
“Remarkably, our affordability continues to be high relative to other parts of the country, but there is no doubt that it is slipping,” Theo said.
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