2024 Real Estate Boom: Madison, WI Sees Surge in Home Sales and Prices Amid Improved Inventory

by John Reuter

April saw a significant surge in existing home sales, driven by strong buyer demand and an increase in available listings. Wisconsin experienced a remarkable 25.7% increase in home sales compared to April 2023, with the median home price rising 6.4% to $300,000 over the same period. Year-to-date, sales have grown by 12%, and the median price has increased by 6.5% to $285,000 compared to the first four months of 2023.

Every region in Wisconsin experienced double-digit growth in home sales in April 2024 compared to April 2023. The most substantial growth occurred in rural regions, with the Central region up by 43.5%, the West by 40.4%, and the North by 37.9%. Urban regions also saw significant increases, with the Northeast and South Central regions rising between 25% and 29%, and the Southeast region up by 16%.

Statewide, inventory levels improved, with new listings increasing by 13% in April 2024 compared to April 2023, and total listings up by 6.1%. Despite the market remaining a strong seller’s market with less than six months of available supply, the months of inventory improved by 14.8%, from 2.7 months in April 2023 to 3.1 months in April 2024. This improvement was particularly notable in rural counties, where supply increased from 3.3 months a year ago to 4.1 months in April 2024.

However, rising home prices and mortgage rates have more than offset modest income growth, resulting in a 10.1% decline in statewide affordability over the past year.

Expert Analysis

Continued Good News on Housing Supply “We’ve got a way to go before the market becomes balanced, but at least it’s moving in the right direction. The growth trend in listings has really helped our sales this year, and it bodes well for robust growth this summer.”

Mary Jo Bowe, 2024 Chair of the Board of Directors, Wisconsin REALTORS® Association

Millennial Demand Resilient Even as Mortgage Rates Rise “There are significant unmet housing needs for millennial buyers, the oldest of whom are now in their early 40s. Even though average monthly mortgage rates have been increasing throughout 2024, millennials remain committed to homeownership, which is a big reason home sales have rebounded this year.”

Tom Larson, President & CEO, Wisconsin REALTORS® Association

Moderating Home Price Appreciation “A comparison of April housing prices in Wisconsin shows median prices up just over 40% since the pandemic hit in 2020. A lot of that increase took place between 2020 and 2022, when median prices rose almost 25% in total. In contrast, the last two years have seen 12-month home price increases of just 5.4% in April 2023, and only 6.4% in April 2024. Since homeownership expenses make up about one quarter of the overall weight of the Consumer Price Index, which is the index used to measure inflation, it’s good to see some moderation in home price appreciation. Hopefully, this will continue as the Fed works to meet its 2% inflation target.”