The supply of homes for sale in Wisconsin decreased substantially over the last month, which is continuing to push up home prices. According to the latest home sales report from the Wisconsin REALTORS® Association (WRA), comparing last month to April 2019:
- New listings in the state plummeted over 38%.
- Total home sales decreased nearly 7%.
April’s drop in home sales can be attributed to the COVID-19 pandemic, as the general public shifted their priorities, and policy makers locked down the economy to control the virus. In Waukesha County, the number of home sales increased slightly from the month of March to April. The county saw a much bigger jump in home sales between the respective months in 2019.
The shrink in supply of homes for sale, in an already slim market, has caused home prices to rise quickly. As illustrated in the graph below, the median home sales price grew significantly more between March and April this year, compared to the same months last year. In just the last 12 months, the median home sales price in the state increased close to 10%.
In Wisconsin, approximately 43% of annual home sales transpire between May and August. Given the fact that the spring real estate market has been delayed, we may see the busy real estate season extended through fall. As more sellers begin to put their home back on the market, or list for the first time, the summer real estate season is expected to heat up considerably.
Pent up buyer demand has created a tough and competitive market for buyers, particularly for homes under $300,000. In the popular Lake Country real estate market, sellers consistently remain in control when it comes to negotiating. It has become common to see multiple offers on properties, that can ultimately drive up the final sales price and enrich other sale conditions favorable for the seller.
If you have been considering selling, it will be worthwhile to do so this summer. While the real estate market is expected to weather the storm better this time around versus 2008, there are a lot of unknowns ahead. If high unemployment levels continue after the mortgage forbearance period, we may see more homes listed for sale. If you’re looking to purchase, now is a great time to take advantage of historically low interest rates that can help offset purchasing costs.
When you’re ready to take advantage of the great opportunities in today’s market, we can help. Contact us and we will advise you on the new real estate safety precautions to keep home buyers and sellers safe, and can help craft a plan for your next move that you are comfortable with.