Still a Seller’s Market? Wisconsin Real Estate May 2025 Update Has Some Twists

Still a Seller’s Market? Wisconsin Real Estate May 2025 Update Has Some Twists

The Wisconsin real estate market is buzzing with conflicting headlines—sales are down, prices are up, and mortgage rates remain a hot topic. So, what’s really going on? We’re diving deep into the latest data from April 2025, with analysis sourced from the Wisconsin REALTORS® Association (WRA) and local boots-on-the-ground insight from John Reuter of Integrity Homes, a veteran Realtor and Homes for Heroes affiliate.

This article goes beyond the headlines to bring you the real story, key stats, and practical strategies—whether you're buying, selling, or just staying informed.

📉 Are Home Sales Really Falling?

You may have seen it: “Home sales down 10.4% year-over-year.” At first glance, that sounds like the market is cooling fast. But let’s put it in context.

👉 April 2024 was one of the strongest sales months in recent memory, coming off a 27.7% year-over-year surge from April 2023. So, yes, sales dipped in April 2025—but compared to a once-in-a-decade peak.

✅ A more meaningful metric? Comparing April 2025 to April 2023. By that measure, sales are actually up 14%. The market is not crashing. It's normalizing after a frenzied period.

💰 Prices Continue to Climb

Despite a cooler pace in sales, home prices are still rising.

• Median sale price in April 2025: $322,000
  ⤴️ Up 7.3% from April 2024

• Year-to-date median price: $310,000
  ⤴️ Up 8.8% compared to the first four months of 2024

Why? The answer is simple: low inventory.

🏘️ Is Inventory Improving?

There’s good news on that front—yes, inventory is improving, but we’ve still got a long way to go.

• Total listings statewide are up 5.9% year-over-year

• Wisconsin currently has 3.6 months of inventory, well below the 6-month benchmark of a balanced market

• We’d need 67% more listings to reach that balance statewide

Regionally, the picture varies:

• Dane County & metro areas: Inventory remains tight (~3.2 months)

• Rural counties: Inventory up to 5 months, giving buyers more options

This creates a tale of two markets: one still competitive in cities like Madison, and one more negotiable in outlying areas.

💡 Buyer Tip: Expand Your Search

If you're getting priced out or outbid in places like Madison or Sun Prairie, consider expanding your search to nearby counties like:

• Jefferson

• Sauk

• Monroe

These areas offer more inventory and, in some cases, better value and less competition.

📊 Mortgage Rate Reality Check

As of late May 2025, the 30-year fixed mortgage rate averages 6.86%. The forecast? Stable.

Experts predict rates will float between 6.3% and 7.0% for most of the year. That’s a big shift from the 2–4% era—but also a step away from continuous rate hikes.

Advice for Buyers:

• Don’t wait indefinitely for rates to drop. Home prices are still climbing, and waiting could cost you more in the long run.

• "Marry the house, date the rate" – Buy the right home now, and refinance later if rates dip.

Advice for Sellers:

• Buyers are rate-sensitive. Your listing needs to scream value:

  • Professional photos

  • Accurate pricing

  • Great presentation

• Consider pre-inspections to increase buyer confidence and speed up transactions.

🧮 Has Housing Affordability Changed?

Surprisingly, affordability in Wisconsin has held steady, thanks to:

• A 7.6% increase in median family incomes

• Stabilizing mortgage rates

This means that more buyers than you think can still qualify—especially with the help of down payment assistance programs.

🎖️ Special Programs You Should Know About

🔹 Homes for Heroes

Designed to give back to:

• Veterans & Active Military

• Firefighters & Law Enforcement

• Healthcare Workers

• Teachers

🟢 Average savings: Over $4,000 when buying or selling a home.

🔹 VA Loans

Exclusive to military members and veterans, VA loans require no down payment and often have better terms than conventional loans.

🔹 WHEDA Loans

The Wisconsin Housing and Economic Development Authority offers affordable loan options and down payment help for eligible buyers.

🧭 Key Takeaways

The April 2025 Wisconsin housing market is best described as being in a transition phase:

• Mortgage rates are high but stable

• Inventory is improving—but still low

• Prices continue to rise

• Opportunities exist, but you need a plan

More than ever, success hinges on strategy, preparation, and local expertise. Whether you're upsizing, downsizing, or buying your first home, working with a knowledgeable real estate team makes a massive difference.

💬 Final Thought

Market averages only tell part of the story. Your personal success depends on hyper-local conditions—your neighborhood, your goals, and your resources.

📍 Want to know what your home is worth?  Find out here!
📍 Wondering where to find hidden buying opportunities? Contact Us

Let’s talk.

📞 Contact Integrity Homes

John Reuter – Integrity Homes
📍 Waunakee, WI
📞 608.669.4226
📧 john@integrityhomeswi.com
🌐 www.integrityhomeswi.com

Helping Heroes. Supporting Families. Delivering Results.