Real Estate Market Trends in Wisconsin: December 2023 Analysis
The Wisconsin real estate market witnessed notable shifts in December 2023, as outlined in the latest report. Here's a comprehensive breakdown of key statistics, expert analyses, and future prospects:
Market Overview:
New Listings Surge: New listings of existing homes in Wisconsin experienced a significant uptick, rising by 6.3% in December compared to the same month in 2022.
Total Listings Increase: This surge in new listings contributed to a 0.9% increase in total listings over the same period, indicating a dynamic market.
Supply and Demand Dynamics: Despite a 25% improvement in available supply over the last 12 months, the market continued to favor sellers, with just 2.5 months of supply in December—well below the balanced market benchmark of six months.
Sales Performance:
December Sales Dip: Limited housing supply impacted December sales, which saw a 6.2% decline compared to December 2022.
Fourth Quarter Resilience: However, the fourth quarter of 2023 performed better than the preceding three quarters, with sales only 4.3% below the same period in 2022.
Annual Sales Comparison: Total existing home sales for 2023 registered a 17.5% decrease compared to 2022.
Pricing Trends:
Median Price Surge: Despite lower sales, the median home price in December rose to $271,000, marking an 8% increase from December 2022.
Yearly Price Increase: The median price for the entire year of 2023 was 7.5% higher than the median price in 2022, showcasing sustained growth.
Mortgage Rates and Affordability:
Improved Mortgage Rates: Mortgage rates showed improvement for the second consecutive month, with the average 30-year fixed-rate mortgage dropping to 6.82% in December from 7.62% in October.
Affordability Challenges: However, the annual increase in mortgage rates and home prices resulted in a 9.7% decrease in the Wisconsin Housing Affordability Index between December 2022 and December 2023.
Expert Insights:
Mary Jo Bowe, 2024 Chair of the Board of Directors, Wisconsin REALTORS® Association:
"While the market remains a strong seller’s one, the winter season presents opportunities for buyers due to increased listings and motivated sellers."
Tom Larson, President & CEO, Wisconsin REALTORS® Association:
"The recent drop in the 30-year fixed mortgage rate is positive news for affordability. Despite challenges, we anticipate further improvements in mortgage rates in 2024."
Dave Clark, Professor Emeritus of Economics and WRA Consultant:
"The Federal Open Market Committee's decision to lower inflation projections and the potential for a Federal Funds Rate cut in 2024 signal positive trends for the real estate market, with expectations for continued improvement in mortgage rates."
As we move into 2024, these insights from the Wisconsin real estate market provide valuable perspectives for both buyers and sellers, hinting at potential shifts in the market dynamics and opportunities for those navigating the real estate landscape.
John Reuter
Integrity Homes
608-669-4226
Search Homes >> www.integrityhomeswi.com
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