July 2024 Wisconsin Housing Market Update: A Resilient Rebound

July 2024 marked a positive shift for Wisconsin's housing market as new listings and home sales rebounded from their unexpected dip in June. The resurgence in listings, which increased by 2.7% year-over-year, contributed to a 4.8% growth in home sales for the month. This upward trend pushed the median home price to $324,900, an 8.3% increase from July 2023.

On a year-to-date basis, the cumulative performance is equally impressive, with both sales and median prices up by 7% compared to the first seven months of 2023. Total sales for the year reached 37,334 closed homes, with the median price rising to $305,000.

Regional growth varied, with the North, Northeast, and Central regions experiencing a sales increase between 10% and 12.6%. The West and South Central regions saw growth ranging from 6.1% to 7.3%, while the Southeast region grew more modestly at 3.8%. Despite these differences, median price increases were relatively consistent across all regions, rising between 6.5% and 8.9%.

The 30-year fixed-rate mortgage rate showed further improvement, decreasing to 6.85% in July, which is just slightly above the rate from a year ago. This decrease in rates contributes positively amid ongoing inventory challenges.

Inventory levels remained tight with only 3.6 months of supply statewide, indicating a strong seller’s market. Homes priced below $350,000 had less than three months of supply, while homes in the $350,000 to $499,999 range had a slightly healthier inventory at 4.1 months. The market for homes priced $500,000 and higher was balanced.

Insights from Industry Leaders

Mary Jo Bowe, Chair of the Board of Directors for the Wisconsin REALTORS® Association, noted the importance of the rebound in listings. "It was encouraging to see new listings pick up in July after a decline in June. This modest inventory growth is crucial for sustaining the upward trend in home sales," she stated.

Tom Larson, President & CEO, commented on the ongoing affordability challenges tempered by recent market improvements. "While rising prices and high mortgage rates have pressured affordability, the recent uptick in listings and the slight drop in mortgage rates are hopeful signs for potential buyers," Larson explained.

Economic Indicators and Market Outlook

Recent economic indicators suggest a moderating inflation environment, with the Personal Consumption Expenditure (PCE) index showing a deceleration in inflation. Coupled with sluggish job growth in July, there's increased likelihood of short-term rate cuts, which may further ease mortgage rates and enhance market conditions.

July's market recovery reflects a resilient housing sector in Wisconsin, balancing between seller advantages and emerging buyer opportunities as mortgage rates and inventory levels continue to play significant roles. 

For more information on the housing market please contact John Reuter at 608-669-4226 or e-mail john@integrityhomeswi.com