Since July of last year, median home prices in Wisconsin have grown at an annual rate of 9.7% or higher each month, according to the latest housing market report from the Wisconsin REALTORS® Association (WRA). Housing inventory continues to be in short supply, which has led to a relentless period of solid price appreciation.
Despite the rise in home prices, the backlog in buyer demand has fueled strong home sales. The bulk of homes for sale in Waukesha County were under contract, detailed in the graph below (as of March 17, 2021 when our data was compiled). Remarkably, over 90% of the homes for sale, priced between $215,000 to $350,000 in Waukesha County were under contract.
As the world turns, the increased distribution in coronavirus vaccinations and warmer weather could motivate the “wait and see” sellers, those who postponed their plans to sell in 2020, to list their home this year. Those looking to cash in on their home equity, and take advantage of low mortgage rates may also be in the market to move, which would help add more homes to the marketplace.
Additionally, new construction homes are on the rise. The Wisconsin single family permit data shows the number of permits pulled increased 13.7% last year from 2019, and increased 19% in January versus the prior year according to the WRA’s report.
Once inventory improves, the growth in home prices is expected to moderate. If you’re thinking about selling, you may find that you will have less competition earlier in the year. As COVID vaccinations become more widespread, more homeowners may feel comfortable listing their home. For those looking to purchase a home, you can still find good opportunities.
Despite the turbulent real estate market, we have still helped our clients successfully close on their home. If you would like to discuss your real estate goals or have questions about the local market, please reach out to us.