Home sales across the state were the strongest since 2005, setting the stage for a record-setting year, according to the most recent analysis by the Wisconsin Realtors Association.
The strong housing market has continued to push median prices higher, rising 6.5 percent over the past year, to $165,000. The growth in median prices rose at more than four times the inflation rate, which increased at an annual pace of 1.6 percent in October.
Prices for the first 10 months of 2016 were up 5.1 percent over the same period in 2015.
“Even though sales activity starts to wind down as we get closer to winter, it’s clear we are on pace for a very strong 2016,” said WRA board chairman Erik Sjowall.
With nearly 70,000 home sold already this year, the state is on pace to surpass last year’s total of 76,700 homes sold.
“This is impressive given the fact that inventory levels continue to fall in the state,” Sjowall said.
There were 40,373 homes on the market in October, which represents 6.1 months of available supply. This is well below the October peak of 66,068 homes in 2010 when there was 14.6 months of available inventory. In metropolitan counties, inventory was 4.6 months.
Home sales in the north region rose 7 percent, and sales were up 5.6 percent in the southeast region. Home sales fell slightly in the west, down 0.9 percent, and home sales dropped 1.7 percent in the northeast region. Larger reductions were seen in the south central region, down 4.3 percent, and the central region, down 19.2 percent.
Despite an increase in median home prices, affordability remains strong in the state. The Wisconsin Housing Affordability Index shows the fraction of a median-priced home that a borrower with a median family income can afford to purchase, assuming a 20 percent down payment and the remainder financed with a 30-year fixed mortgage.
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