August 2024 at a Glance: Wisconsin Real Estate Market Update
The summer of 2024 has seen some interesting shifts in the Wisconsin real estate market. For the second month in a row, new listings in August tightened compared to the same month last year. This marks a continuation of the trend that began in June, when new listings also declined. Market Trends: Inventory Tightens, Prices Increase The tightening of inventories has had a noticeable effect on the market. The statewide median home price increased by 8% to $324,000, leading to a 4.7% decline in existing home sales over the last 12 months. However, looking at the bigger picture, the market continues to show solid growth. From January to August 2024, home sales were 5.3% stronger than during the same period in 2023. Additionally, the median price for homes in the state rose by 8.4% to $309,900, indicating sustained appreciation in home values. Mortgage Rates: Gradual Improvement The 30-year fixed-rate mortgage showed signs of improvement in August, falling just over a third of a percent compared to July. Specifically, the average rate dropped from 6.85% in July to 6.5% in August—a 35-basis-point decline. This trend marks a positive shift from August 2023, when the average rate was 7.07%. The current rate is now 57 basis points lower than the previous year, offering some relief to prospective homebuyers. Affordability: Still a Challenge Despite the recent improvements in mortgage rates, affordability remains a concern due to significant price appreciation and only slight increases in median family income. The Wisconsin Housing Affordability Index, which indicates the percentage of the median-priced home that a buyer with median family income can afford with a 20% down payment and a 30-year fixed-rate mortgage, stood at 121 in August 2024. This is slightly lower than the index level of 123 from a year earlier, highlighting the ongoing challenges for buyers in the current market. Expert Insights Progress on Mortgage Rates Mary Jo Bowe, the 2024 Chair of the Board of Directors at the Wisconsin REALTORS® Association, emphasizes the positive movement in mortgage rates: "High mortgage rates make it really tough for first-time buyers to buy a home because they rely more heavily on financing than those trading up. So it’s good to see mortgage rates come down, and hopefully these trends continue." Slowdown in New Listings Tom Larson, President & CEO of the Wisconsin REALTORS® Association, notes the decline in new listings over the summer: "Growth in new listings was solid during the first five months of the year, but the summer has been a different story. New listings weakened in June, had a small rebound in July, but fell back again in August. We do think new listings will improve if the downward trend in mortgage rates continues." Stars Aligning on Rate Cuts Dave Clark, Professor Emeritus of Economics and WRA Consultant, provides insight into the recent actions of the Federal Reserve: "The Fed has a dual mandate, meaning it is charged with simultaneously avoiding recessions while also controlling inflationary pressures. In its September meeting, the Federal Open Market Committee (FOMC), which is the Fed committee that sets short-term interest rate targets, lowered the target for the Federal Funds rate by a half percentage point. This is the first cut since March 2020, and it signals the Fed is now more concerned with a weakening labor market than inflationary risks. As long as inflation remains controlled, expect additional cuts when the FOMC meets in November and December." Outlook: What to Expect Moving Forward While the summer months showed a slowdown in new listings, the broader year-to-date data suggests that Wisconsin's real estate market remains on solid footing with rising sales and increasing median home prices. As mortgage rates continue their downward trajectory, it will open up opportunities for buyers entering the market. With the Federal Reserve signaling a shift towards more rate cuts, the next few months will be crucial in determining how the Wisconsin housing market will adapt to these changes. For questions on how the current housing market in Wisconsin, or buyer/seller demand please give me a call 608-669-4226 or e-mail john@integrityhomeswi.com
Congratulations to our Buyers and Sellers!
Congratulations to our homebuyers and seller in Waunakee, Wisconsin!
Big news for homebuyers and sellers in Dane County!
Showing Activity in Dane County is by John Reuter 📈✨ Big news for homebuyers and sellers in Dane County! In just the past 8 weeks, accepted offers have skyrocketed by 17%! 🏡💥 If you're thinking about selling your home click here to get a free market analysis of your home and equity report. John Reuter Integrity Homes Broker/Owner 608-669-4226 john@integrityhomeswi.com Real Broker, LLC
Categories
Recent Posts
