The Wisconsin real estate market has been facing some interesting trends in the month of February, with some statistics showing a decline in sales year over year but an increase in median home prices. We'll take a closer look at the data to understand what's happening in the state's real estate market.
According to the statistics, home sales during the month of February year over year are down by 28.1%. However, this doesn't mean that the demand for housing is down. The biggest impact is due to a lack of homes for sale. Total statewide listings from February 2022 to February 2023 are down by 17.2%. As a result, the months of inventory are only two months, which is considered a seller's market. This has been the trend for the last couple of years.
Despite the lack of inventory, the median home price continues to rise throughout the state. Year over year, the median home price rose by 11.7%. The South Central Wisconsin region is the most expensive region of the state to purchase real estate. The median price by region shows that the most attractive price ranges are between $200,000 to $350,000.
The interest rate data for 2022 is also interesting. The interest rate in February 2022 was 3.76%. The average 30-year fixed rate in February 2023 is 6.3%. That's an increase of 67.6% for a 30-year fixed-rate mortgage.
Year to date, home sales in 2023 versus 2022 shows a decline of 30%. Again, the biggest contributor to this is the lack of housing availability, not the buyer demand. Despite this, the average days on the market have dropped by two days, with homes going under contract in 81 days in February 2023 compared to 83 days in February 2022.
The housing affordability index shows that the median-income family can afford the median-priced home, with a factor of 142. This is a drop from February 2022, when the affordability index was 203. This drop is due to the increase in housing prices and interest rates. Despite this drop, it's still affordable to own a home at the median home price. Though South Central Wisconsin has the highest prices, Wisconsin housing is still affordable compared to other places in the country.
The Wisconsin real estate market is facing a lack of inventory, resulting in a seller's market. The median home price continues to rise, and interest rates are increasing, which could be impacting home sales. However, it's still relatively affordable to own a home in Wisconsin compared to other parts of the country. If you have any questions or need help with finding the value of your home or purchasing your first home, reach out to a real estate agent for assistance.