Housing Supply Stalls as Strong Demand Remains

Home sales in January are off nearly 9% in Wisconsin compared to last January’s strong start to 2018, as reported in the most recent Home Sales Report released by the Wisconsin REALTORS® Association (WRA). It has been slim pickings for home buyers as housing inventories remain tight, especially for homes priced under $300,000 due to high demand. Housing inventory in Wisconsin stalled at just 3.5 months of supply, well below 6 months of supply which marks a balanced market. The limited housing supply has not only suppressed the number of home sales but has propelled housing prices. The median home sales price increased 3.5% from last January.

Since 2017, the state has had a strong Seller’s market according to WRA president and CEO, Michael Theo. If you’re thinking about selling, 2019 may be the year to do so or it may get more challenging and less rewarding. Home prices are not increasing at the same velocity they did a year ago and more new construction homes and condominium developments in the area are anticipated to be completed this year. More housing supply will help offset the high demand for homes in Oconomowoc and the Lake Country area, helping to moderate home prices. Generally, winter is a good time for buyers to find good values as demand tends to be lower during the colder season. As we move closer to the spring and summer months however, expect more competition and higher prices. In today’s vigorous real estate market, an experienced Realtor working on your behalf is indispensable. Hiring an experienced Realtor with strong contract negotiating skills along with extensive knowledge and experience in crafting offers greatly increases your likelihood of getting to a successful closing on the most favorable terms.

Sources for data and information:

“Wisconsin Housing Statistics.” WRA: Wisconsin REALTORS Association, 18 Feb. 2019  www.wra.org/HousingStatistics/
“Wisconsin REALTORS® Association: January 2019 Home Sales Report.” WRA: Wisconsin REALTORS Association, www.wra.org/HSRJan2019/.

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