Wisconsin Housing Market Update: January 2024 Insights

In January 2024, Wisconsin's housing market witnessed a notable resurgence, marked by a substantial increase in existing home sales and median prices compared to the same period in the previous year. This upturn is particularly significant given the preceding year's decline in sales, making it the first annualized monthly increase since December 2021.

Sales and Prices

Wisconsin experienced a remarkable 7.4% surge in existing home sales in January 2024 compared to January 2023. This positive momentum contrasts sharply with the 17.4% decline witnessed throughout 2023 compared to the previous year. Additionally, the median price for homes rose by 6% to $265,000 in January 2024 compared to the same month in 2023.

Listings

January 2024 also saw improvements in new and total listings, with new listings rising by 10.1% compared to January 2023. This increase contributed to a 2% growth in total listings over the same period.

Market Dynamics

Despite more homes entering the market, sellers continue to maintain a significant advantage, with just 2.5 months of inventory available in January. This figure remains well below the approximately six months considered indicative of a balanced market. While statewide months of supply have improved by 19% over the past year, rural counties generally exhibit slightly higher inventory levels compared to urban counterparts.

Mortgage Rates and Affordability

Although the 30-year fixed mortgage rate has declined from its peak in late 2023, January 2024 still saw an average rate of 6.64%, representing a 37 basis point increase from January 2023. This, combined with higher home prices, has resulted in decreased affordability, as evidenced by a 7.1% decline in the Wisconsin Housing Affordability Index between January 2023 and January 2024.

Expert Analysis

Mary Jo Bowe, 2024 Chair of the Board of Directors at the Wisconsin REALTORS® Association, highlights the positive impact of increased listings on sales activity, noting a promising trend of growth in new listings over the past four months.

Tom Larson, President & CEO of the Wisconsin REALTORS® Association, acknowledges the persistent seller's market while expressing optimism regarding the recent uptick in new listings. Larson emphasizes the importance of sustained listing growth for a transition towards more balanced market conditions.

Dave Clark, Professor Emeritus of Economics and WRA Consultant, suggests that despite improvements in headline inflation, core inflation remains above the Federal Reserve's target. Clark anticipates that the Fed will likely refrain from rate cuts until further progress is made in controlling inflation.

Overall, January 2024 reflects a positive turn for Wisconsin's housing market, characterized by increased sales, rising prices, and improvements in listings, albeit amidst challenges related to affordability and market balance. As the year progresses, close attention to these dynamics will be crucial for stakeholders navigating the evolving landscape of the state's real estate market.

John Reuter

Integrity Homes 

Broker/Owner

608-669-4226

john@integrityhomeswi.com

www.integrityhomeswi.com