Navigating Wisconsin's Real Estate Landscape: A Realtor's Insight
As we delve into the real estate happenings of November 2023 in Wisconsin, realtors find themselves at the forefront of an ever-evolving market. Let's break down the key observations and challenges from our perspective.
Sales and Pricing Trends
- We've noticed a slight dip of 3.4% in existing home sales compared to November 2022. While this marks the second month of single-digit declines, it's essential to acknowledge that the annual rate of decline is the lowest since May 2022.
- On a positive note, the statewide median home price soared by 7.7%, settling at $280,000. This mirrors the consistent pattern we've witnessed throughout the year.
Year-to-Date Performance
- The year-to-date data tells an interesting story. Median prices have witnessed a robust 7.6% increase, reaching $282,212. However, existing home sales statewide have experienced an 18.5% decline over the same period.
Mortgage Rate Dynamics
- Our clients have been closely monitoring mortgage rates, especially considering the peak at 7.79% in late October. The average rate for November was 7.44%, a notable 64 basis points higher than the previous year's average.
Affordability Challenges
- Navigating the delicate balance of rising home prices and higher mortgage rates, we've observed a 9.9% reduction in housing affordability. The Wisconsin Housing Affordability Index dropped from 141 in November 2022 to 127 this November.
Market Dynamics
- On the positive side, new listings experienced a welcomed growth of 7.2% in November, marking the second consecutive month of expansion. Total listings are now just 2.4% below November 2022 levels.
- While the market continues to favor sellers with a mere 3 months of available supply, there's a slight improvement from the 2.5 months of inventory seen in November 2022.
Expert Perspectives
- Joe Horning, Chairman of the Board of Directors, Wisconsin REALTORS® Association
- "We're witnessing progress with new listings, up over 7% in November. A trend we hope will continue, steering us towards a more balanced market in 2024."
- Michael Theo, President & CEO, Wisconsin REALTORS® Association
- "The recent improvement in mortgage rates is a relief. High rates can price out first-time buyers and deter potential sellers. Continued trends in this direction would benefit both sides of the market."
The Challenge of a "Soft Landing"
Nationally - As realtors, we're attuned to the overarching economic landscape. The Federal Reserve's endeavor to achieve a "soft landing" amid inflation concerns and the need for full employment introduces an element of uncertainty. The next 12 months will be telling.
Locally - What we do know is that Madison distingquishes itself with a diverse job market anchored by its role as the state capital, the presence of UW-Madison, and a booming technology sector. The madison economy is resiliant, marked by stability in government, a robust healthcare sector, and a collaborative business environment. These all contribute to an excellent job outlook. Madison's high quality of life further enhances its appeal, making it an attractive home buying destination for a skilled workforce and fostering optimism for continued economic growth.
Stayed tuned for our December and year end analysis of the Wisconsin housing market. As always please give me a call if you have any questions on the current market, trends, or anything else.
John Reuter
Integrity Homes
608-669-4226 (cell)
Brokered by REAL
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