The Wisconsin REALTORS® Association (WRA) announced that statewide home sales in May plunged nearly 26% compared to last May, in wake of the national emergency and stay at home order in Wisconsin.
The local real estate market was on track to have a strong spring season, but as you can see in the graph below, home sales in April and May were significantly lower compared to the same months last year.
Taking a glance at the first five months of the year compared to the respective time period last year, WI home sales were behind by 5.5% but prices surged nearly 8%.
Many home sellers shifted their priorities when the national emergency hit, and justifiably deferred listing their home or withdrew their home that was active on the market. As a result, housing inventory deteriorated in an already tight market.
Despite the pandemic and officially entering a recession, buyer demand in Waukesha County has remained intact. Mortgage rates are at a record low, standing at 3.23% in May, for a 30 year fixed-rate mortgage.
Pent up buyer demand, especially for homes under $350,000, has created an extremely competitive market for buyers, and a strong seller’s market. Many seller’s are seeing multiple offers on their homes, allowing them to sell quickly and make a profitable sale.
Marquette University economist and consultant to the WRA, David Clark points out in the WRA’s housing report that “We could be returning to a more balanced market,” as low mortgage rates will keep buyer demand steady, and the ageing baby-boomer population may help improve supply conditions in the next one to two years.
If you have questions about buying or selling your home this year, your local real estate agents at Oconomowoc Realty can answer your questions and help you plan your next steps to reach your real estate goals.
Data and market information from the Wisconsin REALTORS® Association May 2020 Home Sales Report.